School lunchboxes can be hard to clean and and lack the food storage solutions that parents need. That’s why Cyndi and Paul Pedrazzi have come up with a lunchbox system that solves both of these problems. Will their product earn them a deal on
Shark Tank YUBO Update
- Entrepreneurs: Cyndi and Paul Pedrazzi
- Business: Kids’ lunchboxes
- Ask: $150,000 in exchange for 15%
- Result: $150,000 in exchange for 20%, dropping to 10% upon repayment within 18 months
- Sharks: Robert Herjavec, Kevin O’Leary
Cyndi and Paul brought their YUBO lunch boxes to the tank. Unlike other lunchboxes available at the time, their product was easy to clean, and had compartments for food. They hoped that partnering up with a shark would help them expand their brand and score a licensing deal with Disney.
The lunchboxes retailed from about $22 all the way up to $40, selling to 100 stores around the world. The couple had been selling their product for four years, and they were on track to do roughly $250,000 in sales. They held two patents on their creation; one for design and the other for utility.
Though the couple invested $350,000 of their own money, they didn’t have enough to pay an industrial designer, so they gave them a 20% stake in their company and a royalty deal. The sharks were taken aback by the amount of the company the two had already given up. Mark Cuban wasn’t happy with their financial decision-making skills so far, so he was out.
Barbara Corcoran had a practical problem with the lunch box, believing it was too big to fit in a kid’s backpack, so she was out next. Kevin O’Leary made the pair an offer of $150,000 in exchange for 10%, in addition to the same royalties deal Cyndi and Paul had made with their industrial designer, a royalty of 5%, dropping to %1, based on sales volumes. Paul declined, saying that making the same royalty deal twice would be unsustainable.
Robert Herjavec offered a deal next of $150,000 in exchange for 30%. Lori Greiner followed, with an offer of $150,000 in exchange for 20%, saying she could get them into Disney and QVC. Kevin came back with an offer of $150,000 in exchange for 20%, with a stipulation that his cut could be reduced to 12.5% if YUBO was able to pay back the $150,000 within 18 months.
Lori revised her offer, saying she would give $150,000 in exchange for 15% if the loan was paid back within 15 months. Robert then offered $150,000 in exchange for 15%, saying he didn’t need the money back at all. He said he would help them get into more retail, including Disney.
Kevin countered again with $150,000 for 20%, that would then drop to 10% if it was paid back within 18 months. Not wanting to miss out altogether, Robert joined Kevin in the offer, and the couple accepted the deal. What happened next? Keep reading our YUBO update to find out!
Our YUBO update research finds that the company is no longer in business. Five years after appearing on
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Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!