Get ready to take your milkshakes to the next level. The Yard is a build-your-own milkshake bar with some truly decadent options, proven demand, and a franchising business model. Will the entrepreneurs behind The Yard be able to get a sweet deal during
Shark Tank The Yard Update
- Entrepreneur: Logan and Chelsea Green
- Business: Custom and novelty milkshake
- Ask: $400,000 for 10% equity
- Result: $400,000 for 22% equity
- Shark: Mark Cuban
Chelsea and Logan Green start off their pitch with a sweet, immersive introduction to a different kind of ice cream bar. The Yard is a franchised milkshake bar that offers larger-than-life milkshakes with cute themes and charming appearances.
They invite Mark Cuban to design his own, despite the fact that he’s lactose-intolerant. There are samples available for the other sharks and all agree that the milkshakes are delicious, though they are shocked to learn how expensive the shakes are, and that they start at 650 calories.
Then they start to talk numbers, and it seems that doubt falls away for the sharks. Turns out that The Yard is having trouble keeping up with demand from customers, and that they have franchised to two other locations. Profit margins on the stores are around 25-28%, which pleases Mark Cuban.
Total sales on their flagship store are around $1.4 million. This all sounds amazing to the sharks until Logan and Chelsea reveal that their deal would be for equity in new franchise locations only.
Robert Herjavec is concerned about this because new stores don’t have proven sales. He’s out. Daymond John works with another business that does sugary deserts, so he thinks it would be a conflict of interest and drops out.
Kevin O’Leary wants to make an offer for everything, not just the franchises, at $400,000 for a 15% stake. Lori Greiner offers the same for 12.5%. Mark, however, decides to go for equity in just the new franchises. He offers $400,000 for 25% and they manage to haggle him down to just 22% of new locations and accept the deal.
But how are these decadent milkshakes doing today? Find out in our The Yard update.
Today, The Yard milkshake bar has franchised a LOT of new stores. Their three original locations have expanded to include new franchises in Alabama, Florida, Georgia, Arizona, Louisiana, Mississippi, Tennessee, Texas, Virginia, and Washington.
In our The Yard update, we found that revenue numbers haven’t been reported since appearing on the show. However, with so many new franchises and the ability to earn about $1.4 million per year on a ‘good’ store, it’s safe to say that The Yard is turning heads.
You can find the other company updates from Season 11 Episode 7 here:
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