Frill Clothing
DEAL
EPISODE SUMMARY
🕓 Air Date: March 6, 2015
Asking For:
$100,000 for 20%
Investor:
Kevin O'Leary, Barbara Corcoran (50/50)
Deal:
$100,000 for 30%
PRODUCT SUMMARY
Frill designs and produces custom recruitment clothing for sororities, providing unique outfits for each chapter during rush weeks.
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Background Story
Frill Clothing, the brainchild of founders Sharon and Kate, emerged from a genuine need within the sorority community. Located nationwide in the United States and Canada, Frill was born out of the founders’ personal experiences as sorority members. Frustrated with the challenges of sourcing appropriate and unique recruitment clothing during rush weeks, Sharon and Kate envisioned a solution that would revolutionize the way sororities approached their attire. As college students themselves, the founders embarked on their entrepreneurial journey with limited resources.
Starting the company with a mere $500, they navigated the complexities of the sorority market, recognizing the shortcomings of traditional bulk orders. The idea for Frill took shape as they aimed to eliminate the issues associated with mass-produced sorority clothing, such as fit problems, stock uncertainties, and the risk of multiple chapters wearing identical outfits. Their unique approach involves personalized attention to each sorority chapter. Frill Clothing sets itself apart by visiting individual chapters, hosting fittings, and crafting custom outfits tailored to the specific themes and preferences of each sorority.
This hands-on and personalized approach ensures that every sorority gets a distinctive look during rush weeks, enhancing the sense of unity and identity among the members. Sharon and Kate’s journey with Frill reflects not only their entrepreneurial spirit but also their commitment to providing a solution to a widespread problem within the sorority community. The company’s growth from a modest start to over $400,000 in sales demonstrates the effectiveness of their approach and the resonance of their product with the sorority market.
The Product
Frill Clothing specializes in designing and producing custom recruitment clothing for sororities, offering a unique and tailored experience for each chapter. The process begins with Frill visiting individual sorority chapters, where they conduct fittings and gather input on themes and preferences. This personalized approach ensures that the clothing aligns perfectly with the identity and spirit of each sorority.
The product lineup includes a range of attire, from T-shirts to formal dresses, specifically crafted for different days of rush week. For example, the initial days may involve more casual wear like T-shirts, gradually progressing to formal dresses by the end of the week. Each piece is custom-made, emphasizing the sorority’s identity and fostering a sense of unity among its members.
Pricing for Frill’s products varies, with dresses costing around $100 to $120, and other items priced accordingly based on customization and quantity. The flexibility in pricing allows Frill to accommodate the varying needs and sizes of different sororities.
Frill Clothing takes orders during a specific timeframe, typically from February to May, aligning with the rush week preparations. The company’s commitment to American manufacturing ensures that all products are made in the USA, appealing to those who prioritize domestically produced goods.
How It Went
The company’s position before Shark Tank
Frill Clothing has demonstrated robust performance since its inception, showcasing a steady growth trajectory and establishing a prominent position within the sorority market. The company’s health and position are reflected in its impressive sales figures, surpassing $400,000 since its launch. Notably, the founders, Sharon and Kate, successfully managed the business while being full-time college students, highlighting their commitment and business acumen. As for partners, Frill Clothing collaborates with sorority chapters across the United States and Canada.
The company’s unique and personalized approach involves direct engagement with individual chapters during rush weeks, eliminating the need for traditional wholesalers. This direct-to-customer model ensures a close connection with the end-users, the sorority members, and allows for a tailored experience. Frill’s customer base primarily consists of sorority members seeking custom recruitment clothing. The founders identified a niche market within the sorority community, catering to the specific needs and challenges faced during rush weeks.
The product’s appeal lies in its ability to enhance the sense of identity and unity among sorority members during these crucial events. In terms of funding, Frill Clothing initially started with a modest investment of $500, demonstrating the founders’ resourcefulness and dedication. The company’s profitability is evident in its sales growth, reaching $149,000 during the founders’ senior year in college. Frill’s funding strategy aligns with its goal to ramp up production, with a recent successful deal on Shark Tank. The company’s structure revolves around a direct-to-customer model, with a focus on customization and personalization.
The Negotiations:
The negotiations for Frill Clothing on “Shark Tank” unfolded as a strategic dance, with the founders, Sharon and Kate, seeking a deal that would not only provide the necessary funding but also align with their vision for the company. The initial pitch saw an ask of $100,000 for a 20% equity stake, valuing the company at $500,000. Robert Herjavec swiftly made an offer matching their request: $100,000 for 20%. However, Barbara Corcoran and Kevin O’Leary presented a joint offer of $100,000 for a combined 33%, deviating from the founders’ initial valuation.
The negotiations took an unexpected turn when both Robert and Barbara and Kevin presented their offers simultaneously. Despite Barbara and Kevin’s attempt to modify their offer and work together, Robert stood firm on his original proposition of $100,000 for 20%. The founders, willing to compromise, proposed reducing the equity to 30%, attempting to strike a balance between the offers on the table.
In the end, the founders chose to accept Barbara and Kevin’s offer of $100,000 for a 30% equity stake. This decision aligned with their initial ask, and the founders valued Robert’s experience and expertise in the sorority market. The negotiation process showcased the delicate balance of securing funding while maintaining a reasonable equity stake, and the founders successfully navigated the offers to secure a deal that would propel Frill Clothing forward in the competitive world of custom sorority recruitment clothing.
