FRSH – Car Air Freshener
DEAL
EPISODE SUMMARY
🕓 Air Date: November 18, 2022
Asking For:
$200,000 for 5%
Investor:
Barbara Corcoran
Deal:
$200,000 for 20%
PRODUCT SUMMARY
Ride FRSH is a subscription-based car air freshener brand that offers unique scents and stylish designs to enhance the driving experience.
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Background Story
Ride FRSH is the brainchild of two brothers, Trey and Don Brown, based in Los Angeles. Trey has a background in entrepreneurship and innovation, having earned a master’s degree in Entrepreneurship and Innovation from USC. Don has experience in sales and advertising, and together, they combined their skills to create a unique product.
The idea for Ride FRSH came to them when they noticed the lack of innovation in the car air freshener market. They saw an opportunity to transform the industry by offering stylish and culturally relevant air fresheners through a subscription-based model. With their entrepreneurial spirit and creative vision, they embarked on the journey to make Ride FRSH the world’s “flyest” air freshener brand.
The Product
Ride FRSH offers a subscription-based service for car air fresheners. Customers can choose from a variety of unique scents and stylish designs, adding a touch of personalization to their car’s interior.
The subscription service offers different plans, with the base plan priced at $8.25 per month, including shipping, for two air fresheners. The highest-tier plan is $10.99 per month. Customers receive their chosen air fresheners regularly, ensuring their car stays fresh and odor-free.
What sets Ride FRSH apart is its commitment to delivering high-quality scents packed with fragrance. Their air fresheners are designed to be both functional and stylish, adding a cool factor to the car air freshener experience.
One of the key advantages of Ride FRSH is the convenience it offers. Rideshare drivers, taxi drivers, and anyone who spends a lot of time in their car can benefit from the subscription model, ensuring they always have a fresh-smelling car without the hassle of purchasing air fresheners individually.
How It Went
The company’s position before Shark Tank
Ride FRSH has experienced notable success since its inception, achieving over $1.1 million in sales in just three years, primarily through a direct-to-consumer online model. In the last year, they achieved $540,000 in sales, with a profit of $40,000. The company is strategically shifting its focus towards retail and wholesale partnerships to expand its reach.
They have secured a significant deal with a major automotive retailer, AutoZone, which will result in $2.1 million in orders across 2,000 stores in 2023. This move into retail indicates substantial growth potential. Ride FRSH’s subscription model has resonated with customers, particularly rideshare and taxi drivers looking for convenient air freshener solutions. Their unique scents and stylish designs have contributed to their success.
They have secured a significant deal with a major automotive retailer, AutoZone, which will result in $2.1 million in orders across 2,000 stores in 2023. This move into retail indicates substantial growth potential. Ride FRSH’s subscription model has resonated with customers, particularly rideshare and taxi drivers looking for convenient air freshener solutions. Their unique scents and stylish designs have contributed to their success.
The Negotiations:
Trey and Don Brown entered the Shark Tank seeking $200,000 for a 5% equity stake in Ride FRSH. Barbara Corcoran showed immediate interest but expressed concerns about the potential backlash from the air freshener featuring a rival basketball team, which led Mark Cuban to exit the deal right away. Kevin O’Leary was critical of the business model, citing the need for profitability and expressing concerns about the valuation. He ultimately decided to pass on the opportunity.
Robert Herjavec also showed hesitation and shared a personal anecdote about a long car trip, which influenced his decision to decline the offer. Barbara Corcoran made an offer of $200,000 for a 25% equity stake in the business. While this was a higher equity share than the founders initially intended, they recognized the value of having Barbara’s expertise and resources on board.
Trey and Don countered Barbara’s offer by proposing a 20% equity share for the $200,000 investment. Barbara agreed to this counteroffer, and a deal was struck. The negotiation process highlighted the Sharks’ differing perspectives on the business, with Barbara Corcoran recognizing the potential of Ride FRSH’s retail expansion plans and its unique approach to car air fresheners.
