Shark Tank May Prove To Be the Next Trend in Franchise Development

Who doesn’t love Shark Tank? The hit show gives entrepreneurs a chance to present their ideas to five titans of industry as a way to hopefully turn their dreams into lucrative empires. Of course, the show also provides a chance for founders to present their business idea and franchising opportunity to a huge, national television audience. 

For example, the fast casual sandwich chain Tom and Chee appeared on the season four premiere of Shark Tank, with investor Mark Cuban seeking franchising rights in Texas and Barbara Corcoran for New York. Cousins Maine Lobsters brought its business model to the sharks in the fall of 2012, receiving a $55,000 offer from Corcoran. 

A few other successful franchise concepts include Fat Shack, with Mark Cuban offering the founders $250,000 for a 15% equity and Beyond Sushi, which was offered $1.5 million from two of the sharks for 30% equity in West Coast operations and 15% in those on the East Coast.

Unfortunately, some franchises aren’t as lucky—the ice cream franchise Sub Zero appeared on the fourth season of Shark Tank but was not offered a deal. Cinnaholic, a franchise that sells vegan cinnamon buns, participated in the fifth season of Shark Tank, ultimately being turned down due to “differences in their vision for growth.”

One of the most famous franchise appearances might be from the paint-and-sip concept Wine & Design, who took the brave decision to send out a bachelorette-themed male stripper into the tank instead of pitching the numbers. The bold choice paid off, with the franchise scoring a deal with the notoriously-hard-to-impress Mr. Wonderful, Kevin O’Leary.

For the franchisors who can handle the pressure of the 90-second pitch and jump into the tank, the ABC show has proven to be a unique opportunity for franchise development.