The Game Face Company Face Paint
DEAL
EPISODE SUMMARY
🕓 Air Date: January 4, 2013
Asking For:
$450,000 for 25%
Investor:
Mark Cuban, Lori Greiner (50/50)
Deal:
$450,000 for 35% + 10% royalty
PRODUCT SUMMARY
The Game Face is a patented peel-off face-painting product designed for sports fans, costume parties, and Halloween, offering a convenient and mess-free alternative to traditional face paint.
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Background Story
Doug Marshall, the creator of the Game Face Company, hails from East Texas, where he works as a copier salesman for Xerox to support his family. The idea for Game Face arose from his experiences with messy face painting at sports events and Halloween parties. Seeing the inconvenience of traditional face paint, Doug conceptualized a peel-off solution that would provide the same vibrant designs without the hassle.
After years of development and refining, Doug and his wife started the Game Face Company as a part-time venture from their garage. Despite facing financial challenges due to the real estate downturn, they persisted in growing the business, securing patents, and building relationships with retail partners and licensed sports teams.
The Product
The Game Face is a peel-off face-painting product made with vegetable dyes and water-based materials, ensuring safety for users of all ages. It offers vibrant designs, including sports team logos and Halloween themes, and is comfortable to wear.
Users simply apply the face paint, enjoy their event, and then peel it off effortlessly without the need for washing. The product is sold both wholesale and retail, with wholesale prices ranging from $0.25 to $0.60 per unit and retail prices set at $4.99. Customers include retail stores, small businesses, and licensed NCAA teams.
How It Went
The company’s position before Shark Tank
The Game Face Company operates as a part-time venture run from the founders’ garage. Despite its modest beginnings, the company has shown steady growth, with revenues increasing from $6,700 in the first year to $102,000 in the fifth year. With over 400 retail customers, including licensed NCAA teams and small businesses, the company has established a strong foundation in the face-painting market. The founders aim to expand further by securing licensing deals with major sports leagues and increasing their presence in retail stores nationwide.
The Negotiations:
Doug initially sought $450,000 for a 25% equity stake, valuing the company at $1.8 million. After facing skepticism from the Sharks about the valuation and his request for a three-year salary, Doug received multiple offers. Mark Cuban and Lori Greiner proposed a $1 million deal for 100% ownership, including a salary for Doug.
However, Doug ultimately negotiated a deal with Mark and Lori for $450,000, representing a 35% equity stake, an $80,000 salary for three years, and a 10% royalty until the investors recoup their investment. This deal allows the Game Face Company to retain partial ownership while benefiting from Mark and Lori’s expertise and connections.
