Romp and Roll
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 8, 2010
Asking For:
$300,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Romp N' Roll is a children's enrichment center offering over 20 different classes in gym, art, and music, providing a vibrant, colorful environment for parents to bond and learn with their children.
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Background Story
Romp N’ Roll was founded by Michael and Babz Barnett, a couple inspired by their own experiences as parents. Located across multiple regions, from Pennsylvania to Puerto Rico, Romp N’ Roll aimed to provide parents with a solution to the challenge of finding comprehensive mommy and me classes in one place. Michael and Babz, recognizing the fragmented nature of available children’s enrichment options, envisioned a vibrant, engaging environment where families could bond and learn together.
Michael and Babz brought a wealth of experience to the table, having both left high-paying corporate jobs to pursue their entrepreneurial dream. Their backgrounds in management and business equipped them with the skills needed to establish and grow Romp N’ Roll into a successful venture. The idea for Romp N’ Roll originated from Babz’s experiences shuttling their two young children to various classes and activities. Frustrated by the lack of a centralized hub for comprehensive enrichment classes, the couple saw an opportunity to fill this gap in the market.
They envisioned a space that not only offered a wide range of classes but also prioritized cleanliness, vibrancy, and quality time between parents and children. Driven by their passion for providing families with a unique and fulfilling experience, Michael and Babz poured their energy and resources into realizing their vision for Romp N’ Roll. Over the years, they worked tirelessly to expand their business, opening multiple locations and striving to create a brand that resonated with families worldwide. Their dedication and commitment to their product and mission have been central to the growth and success of Romp N’ Roll.
The Product
Romp N’ Roll offers a diverse range of classes designed to engage and educate children aged 3 months to 6 years in gym, art, and music activities. The classes are held in a vibrant, colorful environment that stimulates creativity and fosters learning through play. Each week, families can choose from over 20 different classes, ensuring a varied and enriching experience for children and parents alike.
The gym classes focus on physical development, with age-appropriate activities aimed at improving motor skills, coordination, and strength. Art classes encourage artistic expression and creativity through various projects and mediums, while music classes introduce children to rhythm, melody, and musical concepts through interactive sessions.
One of the unique features of Romp N’ Roll is its emphasis on parent-child bonding. Classes are designed to encourage active participation from parents, creating opportunities for quality one-on-one time and shared experiences. Families can purchase class packages or memberships directly through Romp N’ Roll’s website or by contacting individual locations.
Pricing varies depending on the type of class and location, with options available to suit different budgets and preferences. Romp N’ Roll aims to provide families with a convenient and comprehensive solution for children’s enrichment needs, offering a fun and educational experience for children while fostering meaningful connections between parents and their little ones.
How It Went
The company’s position before Shark Tank
Romp N’ Roll has demonstrated a solid performance over the past five years, establishing itself as a reputable provider of children’s enrichment classes across multiple locations. With ten Romp N’ Roll centers spanning from Pennsylvania to Puerto Rico, the company has achieved impressive revenue of $4 million during this period. This revenue stream reflects the growing demand for comprehensive and engaging enrichment options for families. The company’s success can be attributed in part to its strategic partnerships with franchisees who have helped expand the brand’s reach into new communities.
These partnerships have allowed Romp N’ Roll to scale its business model effectively while maintaining consistent quality across locations. Romp N’ Roll primarily targets families with young children, offering a diverse range of classes designed to cater to various developmental needs and interests. By providing a clean, vibrant, and family-friendly environment, Romp N’ Roll has cultivated a loyal customer base of parents seeking high-quality enrichment experiences for their children. In terms of funding, the company has relied on a combination of personal investments from founders Michael and Babz Barnett, as well as revenue generated from sales and franchise fees.
While Romp N’ Roll has achieved profitability with a profit margin of approximately 30%, the founders have reinvested a significant portion of earnings back into the business to support its growth and expansion efforts. The company’s current structure includes both corporate-owned and franchised locations, with plans to continue franchising as a means of further scaling the business. Romp N’ Roll’s success and financial health position it well for continued growth and expansion in the competitive children’s enrichment market.
The Negotiations:
In the negotiations, Michael and Babz Barnett sought $300,000 in exchange for a 10% equity stake in Romp N’ Roll. Despite initial interest from some sharks, concerns were raised about the company’s valuation and business model. The sharks questioned Romp N’ Roll’s low marketing budget and the scalability of its concept. While some sharks expressed admiration for the company’s passion and growth, they ultimately felt that the business model lacked clarity and scalability.
Despite the Barnett’s efforts to counteroffer and defend their business, no deal was reached. However, Robert Herjavec expressed genuine interest in the company and offered $300,000 for a controlling 51% stake. The Barnett’s hesitated, seeking to maintain a larger ownership share, but eventually accepted the deal in hopes of securing a partnership that would propel Romp N’ Roll’s growth.
Ultimately, the negotiation process showcased the challenges of valuing and scaling a business in the competitive children’s enrichment market. While the Barnett’s were determined to defend their vision and secure a favorable deal, they ultimately had to compromise to secure the funding needed to continue growing Romp N’ Roll.
