During Season 2 of the Shark Tank, the brothers, Stuart and David Pikoff, pitched their franchised games truck business to the sharks. They were looking for a strategic partner who could help them grow their business. Their initial offer was for a percentage of the business. They were interested in getting $500,000 for a 25% share of the company. Their offer was turned down because of the business’ excellent sales and customer satisfaction.
In addition, their initial offer required a minimum investment of $107,700 to be a franchisee. In return, they would receive official branded equipment, a vehicle, and marketing. In addition, they would be paid a 6% royalty on all sales. This meant that they would only earn money if their franchisees were successful. As of this writing, there are 140 Games2U franchisees located in 28 states and seven Middle Eastern nations. The business earned $125,000 in gross sales last year, with a profit of $3 million. They are on track to make $5 million this year.
They are also preparing to expand their franchise in Australia and South Africa. They have a master franchise location in Canada. Their business is a mobile entertainment service that offers video game theaters, bumper balls, and other fun activities for birthday parties, corporate events, fundraisers, and other parties. They have a website that provides information about their franchise, party booking, and more.
The Pikoff brothers developed the concept for Games2U while planning their children’s birthday parties. They knew that the old-fashioned bouncy castles and petting zoos were not enough to entertain kids today. They wanted to provide their customers with a unique experience, but they did not want to break the bank. They were determined to find a way to bring the best birthday party experience to their customers without breaking the bank. They decided to turn their ideas into a business.
They went through several rounds of negotiations. Their initial offer of 51% of the company was rejected by Kevin O’Leary, who was in the mood to take the biggest bite of the apple. During the next round, they were able to negotiate a 25% ownership of the business. The offer was rejected again because of the brothers’ excellent sales and customer satisfaction. They wanted to stay in control and not give up their stake in the company.
They continued to try and get the Sharks to invest in their business. However, the Pikoff brothers were not able to secure a contract in the tank. They were ranked among the top failures of the Sharks. Their net worth is estimated at $400 million. The brothers were in the market for a strategic partner who would be willing to take a big risk on them.
They went on to meet with the brothers again. They discussed their offer with David. They were considering giving the brothers a majority stake in the company. The brothers were reluctant to give up control of the business, but they were impressed with the company’s business model.