Franchise Brands That Leveraged ‘Shark Tank’ to Launch Development

“I’m out.” Is there anything more gripping than waiting to hear a Shark’s verdict on a potential business deal? 

“Shark Tank,” the ABC reality show that puts entrepreneurs front and center with a group of well-capitalized investors in hopes of finding a match, has become an interesting development model for franchisors in the past. Even if the franchises are unable to secure funding, they’re able to get their brand name in front of millions of people, potentially drumming up interest in the product or service, or even spiking demand among potential owners.

Which Franchise Brands Have Appeared on ‘Shark Tank’?

Over the years, “Shark Tank” has seen its fair share of now-franchises “in the tank.”

Tom & Chee, the fast-casual tomato soup and grilled cheese franchise, appeared on “Shark Tank” in 2013. Trew Quackenbush and Corey Ward were seeking $600,000 for 10% of the company but ended up making a combined deal with both Mark Cuban and Barbara Corcoran, securing $600,000 in funding in exchange for 30% of the company. Cuban later backed out of the deal after indicating that he was more concentrated on corporate development than expanding through franchising.

Cousins Maine Lobster, the now food truck and brick-and-mortar lobster franchise, appeared on “Shark Tank” in 2016. The owners, Jim Tselikis and Sabin Lomac, were seeking $55,000 for 5% of the company but ultimately entered into a deal with Barbara Corcoran for a $55,000 investment in exchange for 15%.

Cinnaholic, the all-vegan cinnamon bun franchise, came to “Shark Tank” looking for a $200,000 investment in exchange for 20% equity. Shark Robert Herjavec offered exactly that, but the deal was not sealed as he was interested in increasing the retail and shipping business while the founders were more interested in increasing the storefront presence.

Tippi Toes, the children’s dance, camp and party concept appeared on season two of “Shark Tank.” The founders are said to have secured a $100,000 investment from Mark Cuban in exchange for 30% of the company, but the deal later fell through.

Beyond Sushi, a vegan, kosher sushi concept was presented on “Shark Tank” when Guy Vaknin worked to secure a $1.5 million investment in exchange for 25% of west coast equity and 5% of east coast equity. He ultimately made a deal with Matt Higgins and Lori Greiner for a $1.5 million investment, but he gave up 30% equity in west coast operations and 15% equity in east coast operations.

While “Shark Tank” has been a clearcut investment strategy for multiple franchisors, some have taken an even bolder approach to investment seeking. When Wine & Design, a “paint and sip” franchise, appeared on “Shark Tank,” it took a more risque approach, sending a disrobed “model” into the tank to make an impression on the Sharks rather than relying on the numbers alone. Luckily, Mr. Wonderful, Kevin O’Leary, was impressed, and they closed a deal.

As funding is often a consideration of new franchisors, or those evaluating the resources necessary to launch a franchise, pursuing financial support through a mode similar to “Shark Tank” can have a big payoff — assuming the founders have the guts to swim with the sharks.