Omar Soliman and Nick Friedman come to episode 101 of the Shark Tank with their budding business, College Foxes Packing Boxes, a spin-off of their already successful “College Hunks Hauling Junk.” The company had its roots in Soliman’s mother’s furniture business. The college student noticed that his mother’s customers would often offer to pay to have their old furniture hauled away when the new items were delivered. He talked her into allowing him to offer the service, and his junk removal service made $8,000 over a summer.
After Soliman and Friedman returned to school, an opportunity came up. Soliman’s college offered a contest for young entrepreneurs. Soliman and Friedman wrote up a formal business plan and submitted it to the contest. When they returned from Spring Break, the pair learned they’d won the $10,000 first prize. College Hunks Hauling Junk was born.
College Foxes Packing Boxes Shark Tank Recap
Soliman and Friedman come to the Shark Tank looking for a $250,000 for 25% of the company. They’re offering only an interest in the the College Foxes Packing Boxes, not the already-successful College Hunks franchise. The young men present the Sharks with a business model: specially trained young people who bring quality service to the organizational services market, a proven customer draw.
Robert wants clarification. He asks if they’re offering a piece of the College Hunks business. The partners are offering a piece of the new business, not of the existing company. Kevin O’Leary jumps in. “We’re not giving you a dime,” he declares, “Without taking a big piece of your existing business!”
The young men are unimpressed with the Sharks’ insistence that any deal will have to include the College Hunks. They’ve built a successful business, and don’t want to give up equity in their company.
Kevin O’Leary takes the first bite. He offers the entrepreneurs the $250,000 for a 51% stake of the existing business and the Foxes Packing Boxes spin-off. Soliman and Friedman are already shaking their heads.
Crazy Bidding
Herjavec asks the young men to consult, and make an offer based on the combined business. The pair converse briefly, and come back into the Shark Tank to offer 10% of the entire company for 1 million. The Sharks laugh at the offer. Kevin O’Leary calls the offer “ludicrous, ridiculous,” and tells them to “stop the crap and deal with reality.” He’s “frustrated and unhappy,” with the partners. O’Leary is out.
Daymond John is out based on the business model of young women being on call for jobs, saying he’s concerned about “Men in trench coats calling up, saying hey I need to move again.”
Kevin Harrington thinks they’re basing their valuation on what the business will be worth in five years. He’s out. Barbara Corcoran is out on the same basis. Robert Herjavec is the last remaining Shark. He’s impressed by the young men’s confidence. He offers them a deal: $250,000 for 50% of the Foxes Packing Boxes, and 10% of the College Hunks business, calling the 10% collateral.
Soliman and Friedman pass on the offer. They’re not willing to give up a stake in their Hunks business. They leave the Shark Tank without a deal.
College Foxes Packing Boxes Shark Tank Update
After leaving the stage, Soliman remarked, “That’s why it’s called the Shark Tank, you know, not the Bunny Tank. They smelled blood in the water, they saw a successful business, and they jumped all over it.”
The young men continued to grow their business, and today it remains a thriving franchise. The organizational branch of the business isn’t mentioned on the website, and appears to have no web presence, so it seems the Sharks were correct in their risk assessment. Still, the College Hunks continue to haul junk, quite lucratively, and retain ownership in 100% of their business.
In hindsight, the guys cleverly created a “fake” business that mirrored their real one. In the first three seasons of the Shark Tank, businesses that received an investment had to give up 5% of sales to the production company. When a company got a deal, it was expensive! Considering that in 2021, College Hunks has over 160 franchisees and over $200 million in annual revenue, they’d be giving up serious change!
In July, 2021, the company made this announcement in a press release:
“The purpose-driven, values-based, socially conscious, tech-enabled national moving and junk removal franchise College HUNKS Hauling Junk & Moving® recently accepted minority investments from Susquehanna Private Capital (Susquehanna) along with two former International Franchise Association (IFA) Chairs- David Barr and Shelly Sun.
Advised by Arlington Capital Advisors, Co-Founders and Visionaries Omar Soliman and Nick Friedman remain as head hunks. While terms of the agreement are undisclosed, the new investors will play roles on the board and help guide the future growth of the company. The two founders famously turned down a deal from Robert Herjavec on the very first episode of ABC’s Shark Tank ten years ago. Since then, Soliman and Friedman have led a successful brand that capitalizes on disrupting the local moving and junk hauling industries with a focus on building leaders and stress-free client experiences. College HUNKS Hauling Junk & Moving now has over 160 franchises in the USA and Canada and is on pace to reach over $200M systemwide sales this year, nearly a 70% increase from 2020.”
As of September, 2022, annual revenue of College Hunks Hauling Junk is north of $180 million.
Speak Your Mind