Asked $300,000 for 10% · Deal $300,000 for 15% with Barbara Corcoran
Trevor and Heather Szafranski pitched R1SE, after-school education and recreation centers in Freeland and Midland, Michigan, about 10,000 square feet each, where the first hour is homework and test prep and the second is movies, games and physical activity, at $15 per hour per student. Trevor, a former teacher with 15 years in the classroom, saw students lacking academic support while parents struggled to balance work and homework help. Each location generated roughly $500,000 to $600,000 a year at a 21% margin, serving about 120 students a day. Lori Greiner called it a great pitch but wanted a strategic partner, Rashaun Williams worried it needed rapid expansion to scale, Daymond John passed, and Kevin O'Leary called the pricing a moral dilemma, suggesting they double it, which the founders resisted. Barbara Corcoran was the only bidder at $300,000 for 15%, advising a McDonald's-style model of owning rather than leasing real estate, and the founders accepted.
“The founders told the story of a boy who lost his father and struggled in school until R1SE, where his grades improved and he eventually went to college, and Kevin called the pricing question a moral dilemma before going out.”
- Interested
- Barbara Corcoran
- Out
- Lori Greiner, Rashaun Williams, Daymond John, Kevin O'Leary
Where they are now:Operating$1.2M revenueFull update →
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