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00:00Tonight on Dragon's Den, a groundbreaking Season 20 takes off.
00:09Oh yeah, we're in for a show.
00:11Cheers, Dragons!
00:12Cheers!
00:13Ahoy, Dragons!
00:15Ahoy!
00:16I haven't seen one of those in here.
00:18Beautiful.
00:19Do it, girls!
00:20A new era of bold ideas ignites.
00:22This is the most incredible thing I've ever tasted in my entire life.
00:25We've seen some great innovation for 20 years,
00:27and this comes right up there among the top.
00:30I'm actually quite terrified right now.
00:32And the most valuable lessons are the toughest.
00:36If you don't like the way we're pitching,
00:38then we're probably not the right partner for you.
00:40I worry about your focus.
00:41You're building an almost impossible business.
00:44You can have the best business, but the worst person running it.
00:48I can't be in partnership with somebody who doesn't know their numbers.
00:51I should have brought my accountant with me.
00:53Canada's top stage for innovation is bigger than ever.
00:56That's different.
00:57We see the future of Canada right in front of us right now.
01:00I started with $400, no lines of credit, no investments.
01:03Wow.
01:04Just a cash business.
01:05You are in the top 1% of the 1%.
01:07It just takes one person to change the arc of an entire industry.
01:11This season, life-changing decisions will be made.
01:14I would offer you $100,000 for 100% of the company.
01:17And entrepreneurs put it all on the line.
01:20I'm doing it because I believe in her.
01:22What matters is if you have a dream and you dare to pursue it.
01:26And later, celebrity dragon Drew Scott takes his seat.
01:30Welcome to the den, Drew.
01:31All right.
01:32This property brother's ready to turn fixer-uppers into profit powerhouses.
01:36She looks pretty good.
01:37Nailed it.
01:38Across multiple shows.
01:40And next time, you take the deal.
01:43I've been looking for a good solution in the bedroom.
01:46Or, sorry, sorry.
01:47Whoa, whoa, whoa.
01:48How's that?
01:49Drew is here to bet big.
01:50Brand like mine, it is stronger than what Arlene can offer.
01:53I want to buy your company.
01:54Guess what?
01:55I've got my first deal.
01:56You got your first deal.
01:58Woo!
01:59This massive milestone season starts now.
02:03First to face the dragons.
02:26We're here to show Canada that there's a new iconic luxury brand in town.
02:31The goal is to get a dragon, maybe two, and build an empire.
02:35An even bigger one.
02:38Now, the heat is on.
02:40Let's see if their bold ambition can rise under the pressure of the den.
02:47Hi, dragons.
02:48I'm Tommy Nguyen.
02:49I'm Chian Nguyen.
02:50I'm Sophia Nguyen.
02:52I'm Elisa Nguyen.
02:53And I'm Selena Do.
02:55We're from Toronto, Ontario.
02:56And together, we make the five Vietnamese brother and sister founders of Meri Mimochi.
03:00And today, we're seeking $700,000 for 5% equity of our company.
03:05Wow.
03:06Wow.
03:07Hello.
03:08Meri Mimochi is a premium and luxury mochi donut cafe.
03:11Our mochi donuts have the perfect formula, creating a perfectly chewy texture that is not oily at all.
03:18But we don't just sell mochi donuts.
03:20We sell an experience.
03:22Millions.
03:23Pairing that with our winning secret recipe, you will understand why we always sell out and always have hundreds of people in line at every grand opening.
03:31Wow.
03:32I've heard this.
03:33Yeah.
03:34I've heard of you guys.
03:35We've already become iconic in the Toronto scene, growing to 13 locations in our first year alone.
03:39That's amazing.
03:40So, Dragons, this is Meri Mimochi.
03:44Ooh.
03:45Oh, wow.
03:46Nice.
03:47That's a beautiful cafe.
03:49Dragons, we invite you down to really just enjoy Love at First Bite.
03:53Love at First Bite.
03:54Okay.
03:55Let's get some mochis.
03:57Yes.
03:58Yeah.
03:59We don't have to marry anybody when we're in here, right?
04:00Marry you.
04:01This is so beautiful.
04:02This is so beautiful.
04:03Mary Mimochi offers a rotating menu from their 150 flavors.
04:07Whoa.
04:08With popular staples including creme brulee, green tea matcha, and Oreo priced at $5 each.
04:14Okay.
04:15Two each.
04:16So, Michelle, what you have over there is the Cinemochi.
04:17Okay.
04:18So, you guys can just enjoy.
04:19Okay.
04:20I'm gonna go with the one that matches my own.
04:21It's not like a regular donut.
04:22It's not heavy.
04:23It's not oily.
04:24Wow.
04:25And it's not too sweet.
04:26Wow.
04:27They offer specialty drinks like Vietnamese iced coffee, sugar cane juice, and ube water.
04:32Hmm.
04:33This might be the most incredible thing I've ever tasted in my entire life.
04:37Wow.
04:38And also, you know, mochi donuts are actually made to be shared.
04:40Okay.
04:41So, you can actually just break them into little balls.
04:42Okay.
04:43Which one do you want to share?
04:44This one?
04:45Whichever one.
04:46Yeah.
04:47It's like a perfect mix of flavors.
04:48Oh, wow.
04:49Okay, guys.
04:50Enough eating.
04:51Let's talk business.
04:52Okay.
04:53Do this.
04:54They're really good.
04:55As a CEO, I'll be taking care of all the business dealings.
04:57All right.
04:58So, I'll let my sisters exit.
04:59Oh, thank you.
05:03Wow.
05:04Impressive, Tommy.
05:06I could eat this all day.
05:09Amazing.
05:10Amazing.
05:11You walk in there and you just want to buy everything.
05:12Yeah.
05:13So, Merry Mochi is definitely experiential.
05:15So, we're not just a regular donut shop.
05:17Yeah.
05:18At every single location, there's always Instagrammable moments.
05:20Everything is self-viral.
05:22So, we created the brand in a way that everything just kind of does free marketing.
05:27So, do you really think mochi donuts are a long-term trend and not just a fad?
05:31I don't think that they're a trend at all.
05:33They've been around for quite a while.
05:35It's actually pretty much everywhere in Japan.
05:38Okay.
05:39So, I'm kind of a serial entrepreneur myself.
05:43I'm actually in the wedding industry.
05:45So, I have a lot of expertise in marketing, a lot of expertise in scaling businesses.
05:50Okay.
05:51But my sisters, we all come from a Vietnamese immigrant family.
05:55My mom actually escaped Vietnam by boat.
05:59My sisters over there were actually on the boat with her when they were very young.
06:02No way.
06:03Yeah.
06:04So, I'm the only one that actually grew up in Canada.
06:06And so, I wanted to take care of them in a way that wasn't just financially taking care of them.
06:13I wanted them to be able to build something for themselves as well.
06:17So, you're the little brother.
06:18I'm the little brother.
06:19That was like, I need to find a business for my family.
06:22And saw the donuts and the dollar signs and said, okay.
06:25Exactly.
06:26And you have 13 locations just in Toronto?
06:28Just in Toronto.
06:29In a year?
06:30In one year?
06:31Yeah.
06:32In one year.
06:33Our biggest issue is we have so much demand and we just can't order enough of everything to even meet that demand.
06:38How much debt do you have today?
06:40Right now, we have 1.8 million.
06:42Okay.
06:43Yeah.
06:44To keep them as corporate owned, not as franchised.
06:46Is that correct?
06:47So, we actually already started franchising.
06:49Okay.
06:50Wow.
06:51What would a shop do first year, first 12 months per cafe?
06:55Yeah.
06:56In revenue?
06:57In our first year alone, in our sales is 2.8 million.
07:01But what is one store?
07:03On average, I would say about $600,000 right now.
07:06That's a pretty good deal.
07:08Some of our stores are not full stores.
07:11They're kiosks and actually have two-month ROIs.
07:14No.
07:15Yeah.
07:16That's crazy.
07:17A two-month ROI is, like, really hard to achieve.
07:22Yeah.
07:23Seriously, I've never seen anyone franchise a concept so quickly out of the gates.
07:27Yeah.
07:28How have you done that?
07:29So, I've created a pretty amazing system.
07:30We have one mega kitchen that basically cooks everything and then we send it out to all of our other locations.
07:37So, it's a lot less footprint and it's a lot cheaper for rent.
07:40Because they don't need the kitchen, right?
07:41They don't need the kitchen.
07:43It's been a hard, hard and long road for sure.
07:46Have you slept in the last two years?
07:48Of course he's not sleeping.
07:49No.
07:50I had two hours sleep before coming here.
07:52Just keep eating the donuts, man.
07:54Yeah.
07:55But I want to hire a team because as a CEO, you know, I should be doing a lot of other things because we have so much interest in franchising worldwide.
08:03If only we knew somebody who knew something about franchises.
08:08Brian.
08:09You're growing so fast though.
08:10I know.
08:11Too fast.
08:12It's not easy to franchise.
08:13I mean, are you really committed to that direction?
08:15Yeah.
08:16So, I've been able to create a system that allowed me to get to 13 stores in one year.
08:22Yeah.
08:23And I can help anybody do exactly the same.
08:25You have to find the right person because if you don't get it right, unlike an employee who you can say, thank you, you're fired.
08:30Franchising, you're locked in.
08:33So, my concern as I hear you speak is that you're spreading yourself way too thin.
08:39Way too thin.
08:40I think that you need to spend some time paying down your debt.
08:43Because the more you expand, the more of a cash flow crunch you're going to have.
08:48A lot of companies go out of business when they're growing like this.
08:52So, I'm going to be out.
08:53My problem here is that it's a great product, but there's nothing proprietary here.
09:01I'm going to be out.
09:02I wish you had said it was all going to be corporate.
09:06And I worry that you're trying to now franchise before you really have the corporate blueprint down.
09:13Because I think you're a fantastic entrepreneur.
09:15But I'm going to be out.
09:17I know in five years, I can grow this company to have $100 million evaluation.
09:26But together with one of you guys, you know, we can build a real empire.
09:32Mr. Franchise.
09:34I think to have the system in Toronto, 13 locations, super impressive.
09:41But Wes hit the nail on the head.
09:43Growing too fast, it'll kill you so fast.
09:46I'd want to see you take a little bit of time to make sure we've got the controls on quality before we blow this thing up in a big way.
09:54Corporate, franchise, whatever that looks like.
09:57So, I'll make you an offer.
09:59Um, did you want to do, were you thinking?
10:02Yeah.
10:03Um, give us one second here to huddle behind the...
10:09Yeah, what do you want to do?
10:11Yeah.
10:12Yeah.
10:13Michelle?
10:14So, we're going to give you $800,000 for 7% of the business.
10:20So, it's an $11 million valuation.
10:23So, the only way that I could do that is if we can do...
10:31I'd be willing to go down to a $12 million valuation.
10:35Six and a half percent.
10:36Six and a half, yeah.
10:37Six and a half, yeah.
10:41Yeah.
10:42Okay.
10:43Okay.
10:44We're in.
10:45We've got to do it.
10:46Okay.
10:47Okay, well done.
10:49Very much.
10:53Amazing.
10:54Okay.
10:55Thank you, guys.
10:56Woo-hoo.
10:57Yes, yes.
10:58Let's go get a donut.
10:59I like this guy.
11:00Here, get behind the love at first bite.
11:02There we go.
11:03Woo!
11:04We did it!
11:05We did it!
11:06We did it!
11:07We did it!
11:08We did it!
11:09We did it!
11:10We did it!
11:11We did it!
11:12We did it!
11:13We did it!
11:14We did it!
11:15We did it!
11:16We did it!
11:17We did it!
11:18We did it!
11:19Coming up.
11:20I can tell you, it is not easy.
11:21Look, I've hired hundreds of software engineers and developers.
11:24I could build this in a week if you needed me to.
11:26I'd bet you anything on that.
11:27Sure.
11:28Okay, let's do it.
11:29Sure.
11:30I'm sure.
11:31I'm happy to do that.
11:32In one week.
11:33In one week.
11:44Ooh!
11:45A baby bear!
11:47Look how cute that is!
11:49This Vancouver business hopes the Dragons will snuggle up to their bold ask.
11:54Hi, Dragons.
11:55My name is Cody, and I am from Vancouver.
11:58I am a Hugsley.
11:59And I am asking for $3 million in exchange for 30% of my patented technology.
12:06That's a brave bear.
12:08Wow.
12:09$3 million.
12:10That's a brave bear.
12:11Now, I'll introduce you to my family.
12:13Well, you know what?
12:15In all the years, never seen that done.
12:18Agreed.
12:19$3 million.
12:20What?
12:21The bear wasn't talking?
12:22It was you?
12:23Shocking, I know!
12:24Thank you, Cody.
12:25Hello, Dragons.
12:26My name is Frank Racinelli.
12:27This is Hannah Deckert.
12:28And our passion is making people happy.
12:32So we've developed a special technology that allows our bears to communicate worldwide.
12:38So your loved ones can always feel appreciated and know that they really matter.
12:42We have Audrey, who lives in Vancouver.
12:45And she misses her granddaughter Lily in Toronto.
12:48And every time that Lily sends audio hugs to Audrey, she knows that her granddaughter thought of her and took the time and energy and love to send her a message.
13:00Oh, that's so cute.
13:01Audrey can then just click the pause of her Hugsley to just send hugs right back.
13:06You can send audio hugs or the light and vibe hugs.
13:10Wow.
13:11So traveling moms such as myself, I quickly can send hugs, say goodnight to my children without getting them all riled up with a video chat before they go to bed.
13:19Can I send Wes a hug from over here?
13:22Yeah, send it over.
13:23You sure can.
13:24Hugsleys are available exclusively online for $99.
13:28Oh, I got a pup!
13:29And come in three varieties, bear, penguin, and dog.
13:32So if you can cradle the Hugsley like this.
13:35Like this?
13:36Or cradle?
13:37Yeah, like this.
13:38We sent each of you some light hugs and audio hugs.
13:40So you should have felt the vibration.
13:42Yeah.
13:43And then the heart would pulse.
13:44Oh, wow.
13:45We also sent a message to one of you dragons, which we can play right now.
13:49Hi, Nanny.
13:50Yeah.
13:51I am looking forward to seeing you this summer and making memories together.
13:55Love you, Faith.
13:56Aw, that's my granddaughter.
13:58Aw.
13:59Aw, that's so cute.
14:00Very sweet.
14:01So she can send a note whenever she wants.
14:03Correct.
14:04Instead of having to worry about FaceTiming or phoning or texting, she can just talk to me whenever she feels like that.
14:10I like that.
14:11Thank you very much.
14:12So what led you to this particular design and product?
14:17COVID.
14:18My wife was commiserating COVID.
14:20She was sitting on the couch, holding onto a pillow, talking about the nieces that were about to have children.
14:25And every time she mentioned their name, she was squeezing that pillow.
14:28Wouldn't that be cool if when you squeeze that, a light would come out in Saskatoon and they could know that you're thinking of them.
14:34Here we are today, three years later.
14:36And tell me, how do you guys know each other?
14:38How did you connect?
14:39From previous businesses, Hannah and I worked together.
14:42I was the CEO of a company and she was the marketing director.
14:45Okay.
14:46And so what's your background?
14:47We had numerous companies over the years, like Mountain Fresh Water Systems.
14:51That's the biggest one.
14:52We sold for about 32 million.
14:53Wow.
14:54Wow.
14:55And that was your own personal exit.
14:56Correct.
14:57You've done well.
14:58Thank you very much.
14:59How much money have you invested in this?
15:011.2 million.
15:02Oh, your own money?
15:03Wow.
15:04Yes.
15:051.2 of your own money.
15:06It's got a big exit right before this.
15:07And we set a limit on that.
15:08Me and my wife said, this is how much we'll put into this project.
15:10Sorry, say it again?
15:11My wife and I put a limit as to how much we put into this project.
15:13And how much is that?
15:14The 1.2 million.
15:15The 1.2 million.
15:16You're at the limit.
15:17Hence why we're here talking to you.
15:18You're at the limit.
15:19You are at the limit.
15:20And now it's time for our money.
15:22So, what are your current sales?
15:24So, we did a three-day trial on Amazon.
15:26And we sold 224 units during that time.
15:29And how much?
15:30$22,000.
15:31So, 20 grand of sales, yeah.
15:32Yeah.
15:33And that was strictly to test.
15:34So, we get the product out there.
15:35Okay.
15:36And now we're ready to market.
15:37Now, what's to stop then someone else from knocking it off?
15:40A technology to send from one app to a device through Wi-Fi to trigger, a sound, a light.
15:47Pretty simple.
15:48It's pretty simple tech, no?
15:49Yeah.
15:50If you think light would be, that's the big kicker.
15:52Light is not.
15:53They still don't understand why that's technically complicated to build.
15:55I might agree with you because I'm not a tech expert.
15:58I don't know whether you are or not, but I can tell you from the technical side.
16:01She's a tech expert.
16:02You should know if I'm a tech expert or not.
16:04Being the person who's actually building the technology.
16:07So, we're talking about guys that are global.
16:10I have people in five countries that have built this.
16:12And I can tell you, it is not easy.
16:15Look, I've hired hundreds of software engineers and developers.
16:19I think I could probably build this in a week if you needed me to.
16:22A week.
16:23I'd bet you anything on that.
16:25Sure.
16:26Okay, let's do it.
16:27Sure.
16:28You need to prepare to shake hands on it.
16:30I'm sure.
16:31I'm happy.
16:32One week.
16:33That it would do everything that our technology does.
16:34I'm betting on you.
16:35A million dollars to build and be built.
16:36He didn't do it.
16:37Wow.
16:38So, what's your strategy to get it out to the world quickly so that nobody beats you to the game?
16:42Our target is $40 million in sales in three years.
16:45We have a five-year marketing plan that involves, you know, social media, digital ads, TV ads.
16:51How much is that?
16:53Dollar-wise?
16:54Yeah.
16:55$14 million is what we're going to spend on marketing during that time.
16:58$14 million over the next five years.
16:59Yep.
17:00Okay, so now the valuation gets a little interesting.
17:02Yes.
17:03Because not only are you asking for $3 million right now, you're going to pump $14 million into just marketing.
17:07All from profit, yes.
17:08But essentially, you're asking us right now to give you a future valuation based on something that's not yet earned.
17:16So, for a guy who's done an exit, so is that fair to us as investors coming in?
17:21But what you're investing in is the patent technology, but also our procurement experience.
17:26It's all the people that got it there and that are going to take it to the future.
17:29Yeah, but that's in the past.
17:30That is what's gotten you to this mark and this point today.
17:33He's saying he's going to get $40 million in three years.
17:36And that's what your investment was.
17:37If he gets $40 million in three years and he gets a five times multiple, wait a second.
17:41Wait a second.
17:42For those who disagree, okay, is this company worth $10 million?
17:45No.
17:46No.
17:47Okay, so that's what we're talking about.
17:48Valuation, right?
17:49No, we knew we were coming in with a really big ask.
17:52And if we only needed $150,000, it would have been provided, right?
17:55We would have done that.
17:56Listen, there's one rule of the debt.
17:58You have to get the money that you asked for when you came in.
18:01Like, we can't even have a conversation when you come out asking for $3 million right off the bat.
18:07So, that is definitely a lesson I wish you would have learned after 20 years of this show.
18:13I'm out.
18:15My experience says that there's lots of value in the process, the product itself, and the opportunity.
18:22I'm out.
18:23I understand.
18:24Talk to the four of them.
18:25Your valuation's too plush.
18:26I can't get behind it, and I just can't make the numbers work.
18:31I'm out.
18:32I'm very respectful of founders who have exited.
18:36It is the hardest thing to do as a founder.
18:39In my mind, they're actually going to have a much higher cost of customer acquisition than you think.
18:43So, because I'm nervous about those elements, I'm going to be out.
18:46Okay.
18:47So, you've still got to spend a lot of money in marketing.
18:51And you mentioned that it's going to be funded out of profits.
18:54But you have to make those profits first.
18:56For sure.
18:57Okay.
18:58You know, I'm basically offended on your behalf.
19:03Because we didn't listen to somebody who's prepared to bet, and I believe your handshake.
19:08So, when people tell you that it's not worth that, or I could do it in a week, or I could do it.
19:13You know what?
19:14You're an entrepreneur.
19:15You're going to do what you can.
19:16I can't get my head wrapped around this because I don't know enough about technology to say it's worth $10 million today.
19:22But I wish you well, and I'm going to be out.
19:25Yeah.
19:26Thank you both.
19:27Yeah.
19:29Thanks.
19:30Good luck.
19:31Arlene, you know there's AI tools that are reducing the cost of coding, like, substantially.
19:36Sure.
19:37Like, I don't sit here and say you don't know about marketing.
19:40Like, I have built tons of pieces of technology.
19:42I didn't say you didn't know about technology.
19:44I said this is a guy who was prepared to shake hands with you and say I'll take your bet that you can build it in a week.
19:49But you can't say that.
19:50He didn't know the tech.
19:51He didn't know the tech.
19:52I don't think he knew the tech.
19:54Okay, here you go.
19:55Send hugs.
19:56Hugs to you.
19:57Hugs to you.
19:58I want to send you guys both hugs.
20:01I definitely think they missed out.
20:03Time will tell.
20:04We know that the world will love Hugsley and everything it has to offer.
20:14Coming up.
20:16It's called the garlic chop.
20:18Call now.
20:191-800-GARLIC-GARLIC.
20:212-800-GARLIC.
20:225-800-GARLIC.
20:23We'll give you 2 garlic chop for the price of 1 garlic chop.
20:25Operators are standing by now.
20:28I'm a Canadian inventor.
20:40We now see that there's a big opportunity and it's time for this product to reach the masses.
20:45Definitely I've had to give up a lot of time creating and innovating.
20:49Also, it's a big learning process to know what your strengths and your weaknesses are and knowing which direction to focus on and who to team up with.
20:57Dragon's Den Season 20.
20:59Chop till you drop.
21:00Chop till you drop.
21:02And now, let's see if all their prep can help them grind out a deal.
21:08Hi, Dragons.
21:09Hello.
21:10Hi.
21:11My name is Nancy and I'm from Mississauga, Ontario.
21:14I'm here today to ask for a $100,000 investment for 10% in the garlic chop.
21:20Now, undoubtedly, one of the most difficult vegetables to peel and chop is garlic.
21:25Agreed.
21:26Are you tired of using your garlic press?
21:28Yep.
21:29Do you hate having to dig out that garlic afterwards and clean it?
21:33Yep.
21:34Do you hate those stinky fingers after using the garlic?
21:37Yeah, sure.
21:38There has to be a better way, right?
21:40There has to be.
21:41Very annoying thing.
21:42There is a better way!
21:43Oh!
21:44Garlic man!
21:45Hello, Dragons.
21:46My name is Evan Ruzicki.
21:49The garlic chop and the garlic peel are for those of us who just want to peel, chop, wash and eat.
21:55Hassle-free!
21:56Yeah!
21:57I'd like to bring down Michelle and Arlene for a garlic chopping demonstration.
22:02Oh, the garlic chop!
22:03Garlic queens!
22:04And then...
22:05Arlene's kind of wearing the color.
22:06I am wearing the colors.
22:07So, we always wear the garlic hat.
22:08So, we have one for Michelle if you wouldn't mind.
22:09And this one is for you.
22:10It goes with your outfit so lovely.
22:11The things I do.
22:12The show.
22:13Ah, yes.
22:14It's definitely you.
22:15Okay.
22:16So, I put this inside your garlic peel.
22:17And this one is for you.
22:18It goes with your outfit so lovely.
22:19The things I do.
22:20The show.
22:21Ah, yes.
22:22It's definitely you.
22:23I put this inside your garlic peeler and I've got twice the friction I've created.
22:28And I push it out through the other side.
22:30It comes out peeled for you.
22:31Okay.
22:32Then I take my peeled garlic clove.
22:33I put this inside my garlic chop.
22:35Let's take some ginger.
22:37I feel like I'm in a K-Tal ad.
22:38Okay.
22:39You can do multiple cloves, one to four at a time.
22:42Okay.
22:43I'm just going to give it a quick left and a right.
22:45This will chop it up.
22:46The more you turn this you get multiple consistencies.
22:49Oh, wow.
22:50You just push this button up to the top so it brings everything up to the surface.
22:54Okay.
22:55And you just scrape this directly off into your salsas, your hot dogs and your stir fries.
22:59That's brilliant.
23:00Thank you very much.
23:01Seems pretty easy.
23:02And no more stinky fingers.
23:03And try to get your garlic press this easily clean this quickly.
23:07No, that's impossible.
23:08Very easy to do.
23:09It's called the garlic chop.
23:11Call now.
23:121-800-GARLIC.
23:13And if you call in the next five minutes, we'll give you two garlic chops for the price
23:18of one garlic chop.
23:19Operators are standing by right now.
23:23It's very cool.
23:24It's actually super easy and it's fast.
23:26We missed your calling on the shopping channel.
23:27Did I miss?
23:28Yeah.
23:29Okay.
23:30This seems incredibly simple, but I guess that's the charm, right?
23:33That's the beauty about it.
23:34Such a good idea.
23:35This is pretty cool.
23:36How long have you been doing it for?
23:38Since 2007, I originally created this.
23:41Oh, wow.
23:422007.
23:43It's actually quite a bit of a story.
23:44I had started off in the cannabis industry.
23:48And in 2003, I won a first place product innovation award for the world's first magnetic grinder.
23:54And as you know, at that time, the cannabis industry was, let's just say it was very controlled.
24:00So I had found a way to expand the product line, but it was in the kitchen market.
24:06So you're an inventor.
24:07Yes.
24:08Very good one.
24:09A meat grinder to garlic chop.
24:10Yes.
24:11And you are living with the angst and the gadgetry all around your home as you advance.
24:15Oh my gosh.
24:16You know him.
24:17I can imagine.
24:18So do you sell these together or are they separate?
24:21They sell together or separately.
24:23They're normally $25 for the chopper.
24:25They're $15 for the peeler.
24:26I sell them together for a $35 price tag.
24:29How much does it cost you to make them?
24:31Landed $350.
24:32For both?
24:33Yes.
24:34Wow.
24:35Are you in stores yet?
24:36Yeah, what stores?
24:37I was in Loblaws back in 2009, 2010, but they didn't place the item properly.
24:45They put it on the bottom shelf and at the back.
24:47So it didn't sell.
24:48And that was like 15 years ago, Evan.
24:50Yes.
24:51Since then, have you gone back to them?
24:54I have not.
24:55I decided to focus on trade fairs.
24:58That is my strength.
24:59Are there competitors?
25:00Yeah, go ahead.
25:01Yeah, there's competitors.
25:02It went on quickly on Amazon and there's tons of garlic chops out there.
25:05And they're all sort of $20-ish.
25:07Well, we've had a lot of people who have come to the booths with us and they've said,
25:12you know, well, we bought one of those and they don't have the technology, obviously,
25:15that Evans does and they end up buying ours.
25:18So they're just copycats?
25:19Yeah.
25:20You haven't gone after them?
25:22I have pursued some on Amazon.
25:23I've used copyrights and patents to kick them off and I'm not looking for a fight.
25:27I don't have the budget for that.
25:29I really want to focus on sales.
25:31So the last five years, I've noticed that the garlic chop sales have been going up 40% a year.
25:36So what were the sales last year?
25:38Last year, there were $22,000.
25:41But why is your company worth a million dollars then, Evan?
25:45I've actually sold a million dollars worth of these garlic choppers and killers.
25:48But that's not the way in 20 years valuations work.
25:51Okay.
25:52Your lifetime sales might be that, but that doesn't mean that it's worth that today.
25:55So the shows that I've done is just a very small pocket of where the sales are.
26:02And I'm bringing in quite a lot of money.
26:04But they've got to be on the shelves.
26:05They've got to be at places where people can go, I want this.
26:08Right.
26:09I want to give everybody ample time to knock you off because you've been doing nothing with your design.
26:14Well, I am.
26:15And this is why I'm doing 80% sales and 20% design.
26:18I'm just tinkering in the back.
26:19Stop.
26:20Stop with the tinkering.
26:21Stop designing.
26:22It's perfect.
26:23Stop designing.
26:24Sell it.
26:25Why are you doing mass marketing yourself?
26:26Like, why haven't you bought half an hour of a slot on TV and done exactly what you did here?
26:31On social media.
26:32Why haven't you gone to the home shopping channel?
26:34That's a good question.
26:35Like, why haven't you done these basic things?
26:36Because he's an inventor.
26:37Right.
26:38But last year we were in the news at the Cornwall Garlic Festival and I've noticed that did help our sales the week after.
26:46I have...
26:47The Cornwall news is not the same as Instagram or TikTok.
26:50Right.
26:51Right?
26:52You need to go to millions and millions of people and see it over and over again.
26:56You will sell these.
26:58I was kind of hoping for a team.
27:01No, but Evan, you need to demonstrate that you know how to sell yourself first.
27:06But I've already sold a quarter million of these, but 460,000, 426.
27:10Over 23 years!
27:12But in your patent, I'm just curious, 23 years?
27:15Yep.
27:16So patents run out after 25.
27:18Yeah, the patents in America are, they've got about three years, three, four years.
27:22Three, four years.
27:23And I also have extensive copyrights on this.
27:25So Evan, the problem with building this business now is you've let your patent run dry.
27:30So even if one of us devotes every single brain cell we have to selling garlic chops,
27:37and then in two years from now, someone else can create this identical product, call it something different,
27:43and then, you know, you have no real way to protect this.
27:46They absolutely could.
27:48I'm going to, Evan, I've been quiet on this.
27:51Sure.
27:52And it's really just because I don't see the opportunity and I'm worried that you might have missed the boat.
27:56I wish you the best, but I'm going to be out.
28:01Evan, I think you've got to get out of your comfort zone if you want to get this to the next level.
28:06Get the names of 100 retailers, call each of them five times and just go at them.
28:11Get two of them to say yes, or one to say yes.
28:15And this could completely change your product for you, but you've got to start with you first.
28:19I'm out.
28:22Evan, how attached are you to this product?
28:26Well, I'm attached to all my products.
28:28I mean, they're all my babies.
28:29This is, you know, but I mean, I have no problem moving on.
28:33Is that what you're asking?
28:34Yes.
28:36Okay.
28:37So this is one of those moments that I actually don't want to bet on you.
28:42I want to bet on the gadget.
28:45I would offer you $100,000 for 100% of the company.
28:49Wow.
28:52Wow.
29:06This is one of those moments that I actually don't want to bet on you.
29:10I want to bet on the gadget.
29:12I would offer you $100,000 for 100% of the company.
29:17Wow.
29:18I would take that deal right away.
29:21That blew my head.
29:23Like, come on.
29:25Can we have some time?
29:27I can tell you right now that I'll make more than that this year, so I can't accept that.
29:30No, you're going to make more than in revenue.
29:32In revenue, not in profit.
29:33How much profit are you going to make?
29:34Actually, this year I'll be about $10,000 profit.
29:37That's right.
29:38Like, you haven't made this work in 20 years.
29:40I don't think you got a great shot in the next three.
29:42She's going to give you $100,000?
29:43Like, come on.
29:44Yes, but the patents are...
29:45The patents are not worth match yet.
29:47Talk some sense into him.
29:49You want to think about it?
29:50Are there other offers?
29:51Really hard.
29:52No, that's the reason I'm out.
29:56With all sincerity, that is an amazing offer for you.
30:04It's 10 years worth of profit to you, Evan.
30:07Like, that's...
30:08And you only have three more years left.
30:10Well, I'm not concerned about the patents.
30:12I'm focusing on the sales now, and I know I can make more than the $100,000.
30:17So that's my offer.
30:19Okay.
30:21Are there any other offers?
30:23Everybody else is out.
30:25Okay.
30:29I cannot accept it.
30:31Your company.
30:33That's fine.
30:35Good luck.
30:36Okay.
30:37Nancy, I hope you give him a talking to in the car on the way home.
30:39I think we see this in the den all the time, where people innovate and they get so attached
30:46to their innovation that they cannot see the opportunity standing right in front of them
30:51with the deal.
30:52I don't feel it was a big enough offer for me.
30:55I'm now getting back in the groove, and I'm looking forward to moving forward.
31:00Hello, Dragons.
31:01I have a plethora of products.
31:02One of the things I love about Dragons Den is that there are problems being solved that
31:15I didn't even know were problems.
31:17We've come up with a solution, which is the banana guard.
31:21The banana guard.
31:22That's a big problem.
31:23Its specific purpose is to prevent bruising during transport.
31:25My all-Canadian product is called the rim roller, and here's how it works.
31:30Three, four, get on the boy and work your core.
31:37Our company is called The Breast Rest.
31:42It's a bee catcher.
31:43This is called Magnetic Mouse Trap, and I just built this last night, okay?
31:48You built it last night?
31:49Yes, I did.
31:50You just thought of the idea?
31:51Just when I think I've seen everything, somebody walks through those doors and blows my mind.
31:55Look at that fog coming in.
31:57Fog Distillery Co.
31:58We use atmospheric harvesting to collect our water to produce a unique vodka.
32:03I can't wait to hear how you capture the fog.
32:05It's a big bucket.
32:08We have specialized netting.
32:10It requires zero energy to actually collect our water.
32:12You're making this stuff up.
32:13I'm 100% serious.
32:14We turn this into this.
32:18We have the single best technology to recycle gold that the world has ever seen.
32:24Oh, my God.
32:25That is brilliant.
32:26What's going on?
32:27The emergency.
32:28Oh, my God.
32:30Oh, my God.
32:31Oh, my God.
32:32Oh, my God.
32:33Jeez.
32:34As you can see, it actually works.
32:36Yeah.
32:37And there's no restriction around the neck.
32:38This is our award-winning product called the Baby Parker Carrier Coat.
32:41It goes simply right over the carrier and the baby.
32:44Honestly, it's such good innovation.
32:46A lesson I've learned from the den is it's good to admit that you don't know what you don't know.
32:51There's a huge gap between you and me.
32:53I know that.
32:54I'm learning.
32:55I'm learning right now.
32:56That's why we need your money.
32:57I'm not a business guy.
32:58I'm not.
32:59None of us are going to give you money so that we can run the business for you.
33:02We want to support them and their businesses.
33:05So it's really about backing an entrepreneur and giving them the fuel they need to be able to grow.
33:09We would like to demonstrate a bold new concept, which is a three-dimensional sawhorse bracket.
33:16That feels like the bracket is hugely innovative.
33:18At the end of the day, it's real money, real people, real lives that we're changing.
33:24Ultimately, I would like to walk into a store and see it being sold.
33:27Right.
33:40Oh, Dad.
33:45I can't believe this.
33:49Thank you so much.
33:50You know, to see not just Sam's dream come true, but his family so excited.
33:55It was just a lot.
34:01From the 36 years ago to this, it's been a journey in all time.
34:11Coming up.
34:12I have no employees.
34:13I've been doing this all on my own.
34:15Most people would hold that as an excuse of why it hasn't scaled.
34:19And it has not stopped you from being able to scale.
34:21You are the ultimate one-woman show.
34:22And finally, a Newfoundland entrepreneur here to storm the den with a bold splash of colour.
34:42Hello, dragons.
34:45My name is Maria Halfyard.
34:46I'm from St. John's, Newfoundland and Labrador.
34:49I'm the founder of the raincoat brand, Murnini.
34:52And I'm here today to ask for $500,000 for eight and a half percent of my company.
34:59We live on the edge of the North Atlantic where the Labrador current meets the Gulf Stream.
35:04And that intersection creates a lot of rain, drizzle, and a lot of wind.
35:09Sure does.
35:10So when it rains in Newfoundland, it falls sideways.
35:14After another rainy day of getting half my outfit drenched, I decided to create my own raincoat that was both full-length and fashionable.
35:23I chose bold and beautiful colours as a reflection of our culture, our colourful homes, and our friendly personalities.
35:33Thank you, models.
35:36You guys look great.
35:38Arlene, Manjeet, Michelle, would you like to try on the most popular raincoat in Canada right now?
35:44Absolutely.
35:45For sure.
35:46Oh, I like the green.
35:47Let's go shopping, ladies.
35:49Cue the models.
35:51Woo!
35:52Murnini raincoats come in eight colours and sizes.
35:54They're sold online and in 50 stores across Canada, including Simon's.
35:59Work it!
36:00Arlene!
36:02Oh, yeah!
36:03Maria also offers rain hats and liner vests that are designed to attach under the jacket for added warmth.
36:09It wasn't raining, but it feels like it's going to start now.
36:12It's raining dragons!
36:14It's great.
36:15Love the feel of it.
36:16Those are nice, ladies.
36:18They look good on you guys.
36:21Well, I'm keeping my knot.
36:23So, Maria, what got you into the raincoat business other than it rains on the rock?
36:28I work at the largest maritime training and R&D facility in the country.
36:32Got it.
36:33We have visiting ships, visiting clients.
36:35And you're doing this on the side or...?
36:37Yes.
36:38Okay.
36:39Our fishing industry and our offshore industry use PVC coats.
36:42Okay.
36:43It's very thick.
36:44And stiff.
36:45Yes.
36:46And that was my first prototype.
36:47And I realized this is way too heavy.
36:49I feel it.
36:50So then I researched what other polymers are out there.
36:52And I worked with my manufacturer for a year to make the best product.
36:57So this definitely feels and looks like a premium product.
37:01How much does it cost you to make?
37:02How much do you sell it?
37:04It costs around $64 Canadian to make.
37:08Okay.
37:09I retail it for $325.
37:11Oh.
37:12Ooh.
37:13But there's a wholesaler in between too, so you missed that part.
37:16I sell to them for $162,500.
37:19$162.
37:21So you've got 50% margin.
37:23That's pretty good margin.
37:24Because you're overpriced whatsoever.
37:26For the quality of this, like I would not have been surprised if you had told me it was $500
37:29or $600.
37:32Mary, how much have you invested in this business?
37:33$200,000 and I've paid myself back already.
37:36Good for you.
37:37I have no employees.
37:38I've been doing this all on my own.
37:40So you put in $200,000.
37:41You paid yourself already.
37:43So you must be doing really well on sales.
37:45Let's see.
37:46Last year we had a gross revenue of $1.6 million.
37:50$1.6 million.
37:51Wow.
37:52That's great.
37:53From the basement of my home.
37:54You do it all.
37:55You've designed, you sell, you...
37:56You are like the ultimate one-woman show.
37:59Yeah.
38:00I pick and pack.
38:01I touch every coat.
38:02I answer every email.
38:04Like it's...
38:05Holy moly.
38:06It's a lot.
38:07There's also technology that can help you with that.
38:08You're doing two full-time jobs.
38:09Exactly.
38:10Maria, you probably have something here.
38:13Because Canada has remarkably hit way above its average in outerwear brands.
38:18Right?
38:19Yes.
38:20Like Canada Goose, Novus, Makage, Arterics.
38:22Absolutely.
38:23Moose Knuckles.
38:24You kind of have a tiger by the tail all the way in Newfoundland.
38:27Yeah.
38:28That's actually what impresses me even the most.
38:32Most people would hold that as an excuse of why it hasn't scaled.
38:36So something...
38:37How about three years?
38:38Something is puzzling me then.
38:39How about three years?
38:40Because this is doing 1.6 million and you're not focusing on it full-time.
38:46You're doing something else.
38:47Why are you doing that?
38:48Not yet.
38:49So I tried to do both because I loved both.
38:52I mean, you guys are a good example of having multiple jobs, multiple passions.
38:58I understand that, but I'm not seeking somebody else's capital.
39:01Are you making any money on the 1.6 million?
39:04Maybe that's the answer.
39:05Maybe that's the answer.
39:06Yes, our net was $864,000.
39:08Wow.
39:09You're making $800,000 a year doing this business.
39:11Holy moly.
39:12One person operation.
39:13Congrats.
39:14One person operation.
39:15That's epic.
39:16Maria, I'm sorry.
39:17You're asking me for my money and you're telling me that you love your day job.
39:21That's paying you way less than this.
39:22Sure.
39:23Because you want to keep it, but you're asking for outside capital.
39:26Because at this point, and this is why I'm here, is where do I go from here?
39:31Okay.
39:32I mean, I know that you're here looking for an investor, but are you willing to, and what
39:36would it take to get you to go full time in the business?
39:39Yeah.
39:40Well, it's on the table.
39:42Okay.
39:43So I'm here really to scale up and with the right partner, with the right growth strategy.
39:50I need to build some employees.
39:51I need to build a team.
39:52Yes, you do.
39:53Yes, you do.
39:54Yeah.
39:55Also looking at how I can distribute better.
39:57It takes a lot to get it to a customer on the other side of the country.
40:01The shipping costs.
40:02But you have the money to hire people.
40:04Yeah.
40:05And if you told me that, I have a management team built, and I want another investor to
40:09come in, different value proposition for me.
40:12So I'm going to be out.
40:13Fair enough.
40:14I like it.
40:16But my gut is telling me that it's so tough.
40:22Look, I don't think we have yet to see a true solo founder, zero employees, $1.6 million
40:29in revenue, making $800,000 worth of full time job.
40:33So I would offer you half a million dollars for a 10% royalty.
40:38Whoa.
40:39And I would help you get an advisory board of people that have actually built the largest
40:44apparel companies in Canada.
40:46So you've built an incredible business with incredible margins.
40:51If I was to invest in something like this, I'd want it to be someone's sole focus so they
40:55could blow it up and go really, really big.
40:58So I wish you well, but for that reason, I'll be out.
41:02Okay, I'll make you an offer.
41:06I can help you with distribution, exporting.
41:09I'm very good friends with Danny Reese from Canada Goose.
41:12And I think there's lots we can learn from other people that are in the sector who have
41:15built multi-billion dollar companies.
41:17I would offer you $500,000 for a 7% royalty until I get three times my money back.
41:27And then I want to convert that royalty to 8.5% equity position.
41:35So I think you have some great offers on the table.
41:40I'm going to pass on this one.
41:41I wish you the best, but I'm out.
41:42Would you be interested working together?
41:47Um, it's not enough of a royalty for both of us to be able to work together like that.
41:54So, no.
41:55I guarantee you we'll 3x this year if you want to.
42:00Wow.
42:01It's a big guarantee.
42:03Arlene, would you accept $500,000, a payback of twice that, with a royalty of 7?
42:12And then 5% forever?
42:15Yeah, I would do that deal all day long.
42:18I think that's a fair deal.
42:19It's a great deal.
42:20Arlene, you're my first choice.
42:21Awesome.
42:22Awesome.
42:23That's okay.
42:24I can't wait to not.
42:25I'm going to never take this coat off.
42:26I'm telling you.
42:27I love it.
42:28Let it rain.
42:29Thank you so much.
42:30Thank you so much.
42:32I look forward to working with you.
42:35I hope it rains dollar signs.
42:36Take care.
42:37Take care.
42:38Bye.
42:40It's a great looking coat.
42:41It really is.
42:42It is a great looking coat.
42:43It matches my outfit too.
42:45Well, listen, at the end of the day, all of us have different reasons why we invest, right?
42:49If she lives up to it, then respect it.
42:50It's a great deal.
42:51It's great.
42:56Next time on Dragon's Den.
42:57DJ, hit it.
42:58All right.
42:59Do we have to start singing karaoke too?
43:00Oh, yeah.
43:01We're in for a show.
43:02Why are you emotional?
43:03I auditioned or put in an application eight times this season.
43:05Persistence.
43:06I think I'm just excited to be here.
43:07Sophia, the money.
43:08Like, there's a lot of money that you must have put out.
43:09How much have you put out?
43:10293,000.
43:11Where'd you get that much money from?
43:12Yeah.
43:13I've been working.
43:14We have property.
43:15You're all into this.
43:16Please tell me you're making money then.
43:17The full set is about $65 and it retails for $550.
43:18$550?
43:19Oh, yeah.
43:20Big margins.
43:21Whoa.
43:22Some rich mamas only buying this.
43:23Got the money where you're mouth and your hands are both.
43:24Got the money on your mouth and your hands are both.
43:25Oh, yeah.
43:26Okay.
43:27Whoo.
43:28It's really cool.
43:29And he's wickets.
43:30Bye, mm.
43:31No.
43:32I mean, we're not too.
43:33No.
43:34You're welcome.
43:35I'm ready?
43:36I'm ready?
43:37You're all into this.
43:38Please tell me you're making money then.
43:39The full set is about $65 and it retails for $550.
43:42$550?
43:43Oh, yeah.
43:44Big margins.
43:45Whoa.
43:46Some rich mamas only buying this.
43:48Oh, yeah.
43:49Yeah.
43:50What's the money on your mouth and your hands are both?
43:52Up on the wheel
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