Funtime Express
DEAL
EPISODE SUMMARY
🕓 Air Date: April 11, 2014
Asking For:
$125,000 for 20%
Investor:
Lori Greiner, Kevin O'Leary (50/50)
Deal:
$125,000 for 20%
PRODUCT SUMMARY
Fun Time Express offers trackless train rides for all ages, providing entertainment in malls and various events.
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Background Story
Fun Time Express, based in Chicago, Illinois, was founded by Stan Krozel and Kevin Ullery, two entrepreneurs with a passion for enhancing the retail experience. Stan and Kevin were driven by childhood memories of uninspiring trips to the mall, where they felt bored and disconnected from the shopping experience. Recognizing the need for innovative entertainment options, they brainstormed ideas to inject fun and excitement into mall visits for families.
Drawing from their collective experiences in business and retail, Stan and Kevin conceptualized Fun Time Express—a trackless train ride designed to captivate mall-goers of all ages. Leveraging their backgrounds in event planning and marketing, they meticulously crafted a business model that catered to both children and adults, envisioning the train as a novel attraction that could transform mundane shopping trips into memorable experiences.
Their entrepreneurial journey began with the launch of Fun Time Express in 2011, starting with a single operational train. As the business gained traction and positive feedback from customers, Stan and Kevin expanded their operations, gradually adding more trains and securing partnerships with malls and event organizers. Their dedication to providing quality entertainment while fostering a sense of nostalgia for customers propelled Fun Time Express to success, paving the way for further growth and opportunities for expansion beyond Chicago.
The Product
Fun Time Express offers an innovative and immersive entertainment experience with its trackless train rides. The trains are designed to traverse through various environments, including malls, parks, amusement parks, sports arenas, and private parties, catering to a diverse range of customers. Each train is equipped to accommodate passengers of all ages, providing a fun and memorable experience for families and individuals alike.
The operation of Fun Time Express is straightforward yet captivating. Customers purchase tickets to ride the train, with each ride typically priced at $3. The trains travel throughout designated routes within malls or event venues, offering passengers a scenic journey filled with excitement and nostalgia. With comfortable seating and eye-catching designs, the trains provide a unique perspective of the surroundings, allowing passengers to enjoy the sights and sounds while relishing in the joy of locomotive travel.
The benefits of Fun Time Express extend beyond mere transportation, as the experience fosters a sense of camaraderie and adventure among passengers. Families can bond over shared experiences, while individuals can indulge in moments of relaxation and amusement. The accessibility and versatility of Fun Time Express make it an ideal entertainment option for various occasions, whether it’s a leisurely day at the mall or a special event celebration.
How It Went
The company’s position before Shark Tank
Fun Time Express has demonstrated robust performance and steady growth since its inception in 2011. With a strong presence in the entertainment industry, the company has established itself as a leader in providing innovative and engaging experiences for customers of all ages. Operating primarily in malls and event venues, Fun Time Express has built strategic partnerships with mall management teams and event organizers to secure prime locations for its trackless train rides. The company’s customer base comprises families, individuals, and event attendees seeking entertainment and enjoyment.
By offering affordable ticket prices and memorable experiences, Fun Time Express has garnered a loyal following and continues to attract new customers through word-of-mouth referrals and marketing efforts. In terms of funding, Fun Time Express initially relied on personal investments from founders Stan Krozel and Kevin Ullery to launch the business. As the company expanded its operations and added more trains to its fleet, it sought additional funding through a combination of loans, grants, and revenue reinvestment. With a prudent financial strategy and a focus on profitability, Fun Time Express has maintained healthy profit margins and steady revenue growth.
The Negotiations:
The negotiations on Shark Tank for Fun Time Express, a trackless train ride business, were intense as the founders, Stan Krozel and Kevin Ullery, presented their business model to the Sharks, seeking a $125,000 investment for a 20% equity stake. Initially, the Sharks expressed concerns about scalability, profitability, and the size of the investment opportunity. During the negotiation process, the founders emphasized the potential for growth beyond mall locations to other venues such as parks, sports arenas, and private events.
They highlighted their track record of profitability and their plan to scale up the business with the Sharks’ expertise and funding. Despite initial hesitation from the Sharks, Lori Greiner and Kevin O’Leary recognized the potential of the business and decided to join forces to make a joint offer. They proposed to invest $125,000 for a 20% equity stake in the business, intending to work closely with the founders to improve metrics and expand the company’s reach.
The founders accepted the deal with Lori and Kevin, expressing their enthusiasm for the opportunity to work with such experienced investors. The partnership aimed to leverage Lori and Kevin’s business acumen and connections to take Fun Time Express to new heights in the entertainment industry.
