And dozens of employees are out on the street. You dont know how to manage this place. Well. [blathers] my name is marcus lemonis, and i fix failing businesses. I want 25 . Youre gonna make a decision now. I make tough decisions. Youre being demoted. Back them up with my own cash. Its not always pretty. Get your ass back here right now. This is business. I do it to save jobs, and i do it to make money. This is the profit. [upbeat music] jacob maarse florists is a pasadena institution. For 52 years he was the goto florist. The business made millions supplying flowers for president ial inaugurations, celebrity events, and the annual rose bowl parade. When jacob died in 2010, his son hank took over the business. Its been a very tough transition. Hank has struggled to lead. Therell be some growing pains. Um. So, well, first of all, im on the top, im the president , im the owner. Just three years later, revenue is down and those profits have turned into losses. Last year maarse generated 3. 6 million in revenue but still showed a loss of 20,000. Between the prices and the disappointing product, i dont know that i would keep coming back. To keep the business up and going, hank took a 200,000 loan from his mom and borrowed another 100,000 from the bank. I would agree were not making money. Right. Hank hasnt made a profit in three years, and hes 300,000 in debt. Thats not a good sign for the 30plus employees who depend on this company to earn a living. The flower industry generates 6. 5 billion a year, and i want a piece of that. If hank maarse is willing to follow my lead, i know i can turn this place around and show profits within a very short time. There is so much stuff in here. The layout of the store makes absolutely no sense to me. I mean, there is merchandise everywhere. Seems like a lot of stuff. [laughs] like, you dont even know where to look first. I see candles, i see greeting cards, i see lotions. How could you possibly sell anything if the customer cant find what they actually need . Confusing your customers is an absolute guarantee that you will lose money. Burnedout bulbs and cobwebs. Its filthy. Its dirty. This is ridiculous. No arrangements here. Nothing. Ive been here for over five minutes, and i dont see an employee anywhere. Anytime i go into a business and they dont greet me within the first five minutes, i turn around and leave. Hi, guys. Well, there you are. Hello. Im marcus. David. Theres barely any flowers on display. And the floral designers, well, its like theyve hidden them in the back. Why wouldnt you want to put your most important asset front and center . Do you know where i find hank . As i walk through the store, i dont understand where hank is. Does anybody know where hank is . This guys supposed to be the Business Owner . Hes asked me to come, and i cant find him anywhere. Probably has his hands full with something. If this was my business, id be out front and center, especially if somebody like me was coming to help. Im accustomed to the old school. We had a very good management. Some of the reviews i was reading online is that the business really changed after jacobs passing. Yeah. People come in here and say, whats happened to jacob maarse . Would he have allowed that . No. No. Hello, im marcus. Hi. Marina. How are you . Both nice to meet you. Youve been here how long . Close to ten years. Ten years . I love working in the store. I grew up here. I mean, i got married here, i had a child here, its a dear place to me, and jacob was a wonderful man. Are you responsible for the showroom . Yes. So why would all the bulbs be burned out . Weve been working on getting new light fixtures. And the cobwebs, those are from halloween . Probably. Left over from halloween. Some of these things are definitely long overdue. So anything thats gonna make the business a lot more successful and give a different twist to it, im all for it. You think theres too much stuff in here . Yeah. Do you guys think you have good Inventory Management . Inventory managementum, as far as knowing whats coming and going . When i meet a general manager, i expect them to understand the fundamentals of business, especially inventory. You have to know what you have, how much it costs, what youre selling it for, how old it is. All those things add up to making money. If you dont know it, how are you supposed to make money . Hank, im marcus. Marcus, nice to meet you. Nice to meet you. How are you . Thanks for coming by. Doing well. Thank you. Youve got a beautiful shop here. Thank you. Lot of history. A lot. By the way, thats a killer picture of your dad. Thank you. When you took over officiallyyour dad passed two years ago . Yes. Is that when you officially kind of stepped in . Yeah. How much money will this business lose this year . 100,000 . No. Less. And last year . How much did it make or lose . Last year was 20,000. 20,000. And the year before . A loss of 20,000. 40,000. And if you had a couple bad months and you ran out of cash, what do you do . Get a loan from the officer. Your mom . Yes. Okay. And how much would you say shes put in here in the last. Three years . Probably close to 200,000 as loans. Is that the only debt on your books . And weve used our line of credit at the bank. How much is that . 100,000. Thats tapped out . Yeah. Over the years ive met a lot of secondgeneration Business Owners. What im concerned about here is hanks mother continues to write checks to keep this business open. When you walk in the front door, if i said to you, okay, what is this place . , how would you describe it . Flower shop. You would say a flower shop. And gift shop. [laughter] and what else . And candle shop. Is selling flowers the most profitable . To be honest with you. I dont know. You know you got to know these numbers, right . Yeah, i know i do. Okay. Does your mom ever ask you . No. Okay. Oh, my goodness. There is so much inventory in here. What do you think this is . Yeah. The warehouse looks like theyve stockpiled five years worth of inventory, and its unorganized. You know how many are in this pallet . Uh. Uh. Hank has no idea whats going on around here. There is merchandise thats been here since hanks dad was running the place. How do you keep track of all this stuff . Do you have a good Inventory System . We have a book that we go along with. Handwritten . Oh, yes. So none of this stuff is in a computer or any sort of Inventory System . No. No. Wow. When you have inventory sit around for years and years, while its depreciating, its just like burning money. Is there a location in l. A. . There was. When did this one close . Ten years ago. You closed ten years ago and you havent taken it off yet . Now wheres the phone number . Or who do you call . I didnt like having the phone number on it. You dont want anybody to call . Mmmm. No, cause that would mean business would go up and youd have to work harder. Right, and then id have to work more and buy more flowers. Okay. Yeah. Hank is so lax about how he runs his company he cant even be bothered with putting a simple phone number on his van. He jokes about it, but, if he doesnt change his ways, more than 30 people could lose their jobs. Maarse does over 3. 6 million a year in sales. And flowers account for 3 4 of that. And since most of it is delivered, i need to get out and see if this delivery process is actually working. I went online to learn more about this business, and the one thing i noticed, there are a lot of complaints about the deliveries and the products once they got there. How many miles on this, do you know . This van . 116,000. Hows it run . It runs pretty good. Does the air work . The air in the van doesnt work, and youre in Southern California . How are you supposed to deliver Fresh Flowers in 90degree heat . No wonder people complain. So are we going the right way . I believe so. Chris, we cant do it that way. We needwe need to know where were going. Im kind of an old school, analog guy, so a map book provides an overview of the area as opposed to just turn left, turn right, turn left kind of stuff. Their delivery process is extremely archaic. This isnt legal, but im doing it anyway. They have no gps. They use a map when theyre gonna leave the store. They have no routing system. No wonder these deliveries are late. Is this it . No. This is 69. So we passed it . We did, cause i was too busy yapping. Maarse spends over a Million Dollars a year buying flowers, and 10 of that, 100,000, is thrown away. A better delivery process and working coolers will cut that number in half. Dont hit the cat. El gato. [meowing sound effect] jacob maarse is marginally unprofitable today, but it wouldnt take much to return it to its glory days. A few small changes, and this place would be wildly profitable again. So you have a business that has a broken process, a good product. Your mom puts money in the business, and you have to run most of the decisions by your mom . Yes. And youre 49 . Yes. Hows that sound to you . It sounds pretty [bleep]. Um. Lets pretend for a minute that your mom didnt want to write any more checks. What would happen to this business in a year . I dont know. Running a successful business requires the three pspeople, process, and product. And maarse has a great product. But their process is lacking. I think its a direct result of the people, especially hank. And people could be the hardest thing to fix. So do you agree that you need a Financial Partner thats not your mom . Yes. Do you agree that you could use a Business Partner thats not your mom . Mm, i dont know that i would want to have a partner. You have one now. Well, my parents, yeah. But i would like to maintain 100 ownership here. Hank called me here because he wants my money, but what he really needs is my expertise. But this business can only succeed if hanks willing to change his ways. Hank, let me be very clear. You need some help, and you need it now. Youre gonna keep calling your mom every time you have a problem . Am i wasting my time here, or are we about to get down and get to business . Which one is it . Coming up. Marina, look, i dont think hank is making this very clear. Youre being demoted. And later. You have no idea about your inventory. This pile of stuff is sitting here, and we still dont know what were gonna do with it. Am i wasting my time here, or are we about to get down and get to business . Which one is it . Is that your mom . Yeah. Is she coming here to help you negotiate . Shes the real checkwriter, right . So why dont we bring her in . Hanks not the decisionmaker here. Very nice to meet you. To meet you. He may own 100 of the stock, but he doesnt even own 1 of the decisionmaking. In my brief day herei was asked to come here by hank. I want to be very clear about that. Ive concluded that this business is a total mess. And, mrs. Maarse, i wish jacob could be here, because im sure jacob would throw me out. But the difference is is that i dont think things would be this way if jacob was here. Hank, look, if you continue to do the same thing, your business is gonna close at some point. I know that she can afford to write checks forever because she doesnt want her husband and her name absolutely. Okay, mrs. Maarse, what im telling you is, if you continue to write the checks on a monthly basis, he will never have to fend for himself. He needs someone like me to hold him accountable for poor performance. I dont think youre willing to do that, and i understand why. But i have to tell you that thats not the way to run the business. So im gonna give you my offer. Okay. Okay . Im gonna give you a check for 100,000. For this 100,000, i want 25 of the profit so that im incentivized to help you grow your business with you side by side. I was thinking more of 20 . Hank, look, my time is valuable. I dont have time to be doing this all night. 25 is really the number that i need that incentivizes me to do the things that i think need to be done. Investing in businesses is always a risk. But i always gear my offers towards minimizing my risk. Theres over 400,000 of inventory here, so my 100,000 offer is safe. If this deal goes bad, i know for certain ill get my money back. And you understand, for the next week, im 100 in charge. Last year, maarse lost 20,000. But i know with a few tweaks, we can go from losing 20,000 to making 1 2 million very quickly. Im so confident that i can make a difference, im writing a check. Is this a now or never deal . Youre gonna make a decision right now. All right. Im okay with that, for one week. But all i ask is that you dont screw me. You dont take my money. Were not the type. Yeah, you wont find anybody that well, why did it take you a while to say that to me . Your mom said it right away. Why did you have to think about it . Im just surprised you would even Say Something like that. Well, sure, you have to say things like that. Yeah. We have a deal . This is all done on the handshake . Is your handshake not good . Mine is. Yours is good . Always. Okay. We have a deal . Deal. Now that theyve shaken my hand, im done being a nice guy. Im gonna test them and their businesses in ways theyve never been tested before. Lets get to work. All right. Thank you. Thank you again. Could all of you join us . Were gonna have a store meeting. Profitable businesses need three things the right process, a great product, and good people. Here, they need help with all three. My name is marcus lemonis, and some of you have seen me around. And im here to help fix this business, so people dont lose their job. There are 32 employees relying on this business for their livelihood. And ever since jacobs passing, theyre starving for leadership. For the next week, im in charge. So what were gonna do is were gonna make some massive changes, and, at the end of this week, were gonna have a grand reopening. Were gonna let our customers tell us if weve gotten it right. I need to get rid of excess inventory, make timesaving changes, and i need to organize whats left. In order for that to happen, i need to put in the right system, like a barcoding system. This building looks terrible. Maarse has a viable product here, but, in order to make it good, we need to display it to the customers in a way thats appealing. They need to see it, and it needs to be presented in a lesscluttered, lessdisorganized manner. The entire store needs to be remerchandised. Were gonna become profitable together. So, marina, you have something youd like to say . I am extremely excited to see whats gonna happen. And the fact that we are gonna honor jacobs name is extremely close to the heart. Hank. Um, i dont know. Im just excited that were gonna actually live up to the legacy that they began. That you began, your family. That my family began, yes. Okay . So lets go get to work. Thank you. What i want to do is have you guys understand what i think is the single biggest reason that the place loses money today. I want to actually make an arrangement. This simple exercise that im asking hank and the team to do isnt complicated. I want them to take a typical arrangement and break it down into parts and pieces so we know what were selling the product for and how much each piece costs. This is the thing that will help us go from the red to the black in one month. Marcus has a good reputation as far as a businessman, but i dont know that he necessarily knows the flower business. So thats yet to be seen. Somebody called in a 75 order. Well, im dothis is 85. 85, okay. Its an actual order. So theres two things that go into this arrangementraw materials and labor. How much is the bowl . Ten. How much is your time . 15 minutes. 15 minutes at 20 bucks is how much . 5. So now were up to 15. Okay, keep going. How much are the hydrangea . The hydrangeas are 3 each for the white. So now were at 33. How much are the tulips . 15 a bunch. Okay, so now were at 48. One bunch of hyacinths, theyre 15 a bunch. Okay, now were at 63. Im gonna do garden roses. How much is that . 2. 50 each. 7. 50 . Were at 70. 50 right now. Three stems of lilac. Lilac is 60 a bunch. So well call it 3 for this discussion . Sounds good, yeah. So were at 81 in cost. So if youre selling this for 85, you know what, good job. We just made 4. Pricing at jacob maarse hasnt changed in years. The cost of materials has gone up, but they havent raised the price to the Retail Consumer at the same time. So if you look at a simple arrangement, and the cost used to be 75, and now the cost is 85, you cant price it at 85. You have to move the numbers up appropriately. These margins arent acceptable. We cant make money that way. Can you grab this with me . Were all working to get this warehouse cleaned up. And i want all hands on deck to get ready for this regrand opening. Is raul here today . He was asleep. He kind of forgot. Hes coming right now. Employee tardiness costs business thousands of dollars each year. Not only is it bad business, its not gonna happen on my watch. I talked to erick about raul. Mmhmm. Whos not here. Right. People can kind of not show up, and they would just kind of get away with it . As general manager, marina needs to set the tone. And showing up for work late is not acceptable. And having the employees respect you is more important than having them like you. Do you know what this thing costs . Our cost . Yeah. No. Marinas the first general manager ive ever met that doesnt understand her business. Do you know what your sales per square foot are . No. Have you ever even thought about that . No. Have you ever even heard that phrase . No. Is that bad . What kind of general manager is this . The thing that i really want you to do is build a team around you. And ive been here a couple days. One thing that glares for me is that marina is not your general manager. Shes not gonna be after today. Theres a need for a retail manager. This is the right job for marina. Its not facility. Its not worrying about the pricing or inventory. Its just selling and taking care of customers. Do you agree with that . Yeah. Its a hard process. Its a lot of work. And im not a real, uh, disciplinarian, getinyourface person. And if marina doesnt cut it in this new role, then unfortunately shes gonna be out. Marina has not proven to me shes capable of being a general manager. Hey, marina, can hank and i borrow you for a minute . Yes. Okay. She doesnt understand the basic inventory functions. She doesnt understand the profit and loss statements. She cant be a general manager in my world. Its important, hank, that marina understands from you with a more clear Job Description and how her wage is gonna tie to that. I agree. What do you want her to do, longterm . Okay. Sales, weddings, parties, whatever. Anything that goes through the register, right . Right. Does she need to mess around in the warehouse anymore . No. Does she need to be in the Plant Department . No. Does she need to worry about if the airconditionings broken . No. All that stuff, relieved. How does that make you feel . Am i completely being withdrawn from the staff . cause usually now the employees will kind of report to me, and then, if its a bigger problem, ill go to him. So is that still gonna happen . I would like you to still be responsible for that. Okay. Well, thats different than what we talked about. Hank and i had an agreement that, when marina came in, he was gonna demote her himself. But the minute marina came in, he caved. Marina, look. I dont think hank is making this very clear. And its hard for him, because he has a longtime relationship with you. For me, this is business. And from my perspective, youre being demoted. You are no longer the general manager. Why is that . I dont know if youre qualified. What makes you feel that way . Quite frankly, i dont think that the people that work here have any discipline or any structure. And am i supposed to blame hank, or am i supposed to blame you . Youre the general manager. Who do you want me to blame . The blame would be on me. Well, then thats why youre being demoted. I dont know where marcus is coming from. He doesnt know everything that i do in the store. I work hard everywhere that ive been. And thats how ive been taught. Thats how ive been raised. But hank just doesnt take action. And that adds a lot of pressure. [sobs] i just want to make sure were clear, okay . All right. Coming up. The new van, check it out. Unbelievable. Very elegant. Its easy to buy this online or wherever and just slap it on a truck. And later. Turn the car around, get your ass back here, and be a leader right now. When hank and marcus demoted me, it was hard, but hes the business expert, and, you know, i still want to do everything in my power to keep, you know, the Family Business going. I want you to see the lines of sight, okay . Right. And we want to have clear lines of sight, so when the customer comes in, its inviting. If theres one thing i know about a business, appearance matters. So im gonna reorganize the store and change the layout, because thats the only way were gonna make money. We have everything here from vases to lamps to flowers to furniture to candles to wallpaper to greeting cards. Okay. All im thinking about is customer flow and ease of access to product. The First Impression in the business is the only impression that matters. So im bringing in some designers to help me reorganize the store and remerchandise it. If the customers can find the inventory, they can buy it. And thats how well make money. There are workers everywhere around here. Electricians. Im going to get you light fixtures. Okay. Im looking for this thing to be as bright as day. Not only is this building old, but it hasnt been maintained in years. Im replacing fixtures, wiring, everything you can think of. We are installing security cameras, so ill be able to literally, on my phone, click something and see all the different cameras. The security cameras are gonna tell me what departments are busy and which ones arent and the traffic patterns of the customers. I also ordered gpss for all the vehicles. Ive put a new Inventory System in place, so i know where all the inventory is. All of its input, and now were in the right century. Im replacing the filthy flooring with fresh, new carpeting. Were replacing the absolutely ridiculous plastic windows with glass. Were also decluttering the inventory by moving things into a brandnew sale section in the warehouse. Were gonna turn this inventory, and were gonna free up our cash. That fixture, this fixture, this fixture, and this fixture all go into the warehouse. Marcus took a lot of stuff out of the store and just kind of dumped it in the garage. This doesnt seem like a great plan at all. I mean, i couldve taken all the stuff out of the store and just put it in the garage and then called it a day, so im not sure what were doing or what his idea is. Hey, i see you guys. One of my ideas is to make sure that, when the customer comes in, they can see all the floral designers along the lefthand side. What do you think, david . Better . Good. I definitely think the changes are for the better. Its been a long time coming. I am very happy. Well go right to the garbage. Is there a waycause weve talked about thisto, like, frost that window . So that way you cant see. Yeah. cause it looks reali mean, the floors do look trashy when youre walking that way, especially if were throwing youre saying all the way down . Yeah. I like that idea. Great job. Really great job. Lets start working on that. I was worried about how marina was gonna handle her demotion. But i have to tell you, im pleasantly surprised. She seems very committed, which proves to me that she cares about this company. This is really, really nice. I think now you know youre in a flower shop. Okay. I feel really good about the progress these team members are making. And the vibe in this building is the best its ever been. Good. Well get these tables set up so that tomorrow morning, when the freshcut stuff comes out, this power aisle will have the right stuff here. So i think were good. Im not sure that the store looks that much better. So my confidence in marcus right now is kind of wishywashy. Okay . All right. [clears throat] yes . No . Well, when the store opens, i dont want it to look like were going out of business or or renovating stuff . Or somebody came in and stole the tables that the arrangements go on. Hank, why dont we go just chat . Maarse has over 400,000 of inventory, and over half of it has been here for years. We need to liquidate the bad stuff and reinvest that cash either in paying off our debt or buying inventory that sells. Youre tired. Its been a long day. Youre frustrated. Youre seeing all your cash sitting out here, and youre thinking to yourself, this guy came in here, he took all the [bleep] out of my store, and hes acting like its not worth anything. Am i pretty close . Well, you took it all out. And now its in the garage. And now what are we gonna do . This is all the new stuff. How long is this gonna sit here . Or are you gonna tell me what to do with it . Dont get frustrated. But when you say to me, everythings new 90 of that cart is new, yeah. How about that cart . 90 of that cart . With the exception of the luggages and this, Everything Else is new. Oh, and those lamps. The paintings are new. The metals new. I got to tell you guys, you have no idea about your inventory. Yeah, but that doesnt clear the fact that this pile of stuff is sitting here, and we still dont know what were gonna do with it. Hank has no idea how much merchandise he has. Sitting on dead inventory will lead to bankruptcy. If we want to avoid that, wed better get rid of the stuff that doesnt sell. Its got to go now. I want to make it easy. Is this new . No. What else . Coming up. So what do you think, since youve been here before . Really beautiful. So you think youll be coming back . Oh, yeah. And later. No, im not [bleep] kidding. Youre gonna try to tell me that i didnt put money in your business . I dont know what you did. You better call your mama and get my money back. Shouldnt you pay less when you use less data . Now you can. Because Xfinity Mobile gives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Thats simple. Easy. Awesome. Go to xfinitymobile. Com today. You know, hanks not totally comfortable with all the changes that im making, but he will be when he sees his bottom line in a couple months. Im gonna take him to the flower mart, and im gonna show him how easy it is to make more money. If youre gonna make money in retail, its not only what you sell it for, but its also what you buy it for. Credit card . If hank takes my advice and takes cash to the flower mart, i think he can pick up 10 to 15 points of margin on what he buys. Well, maarse buys 1 million a year in flowers. So just with that simple advice, i think he could pick up 100,000 to 150,000 in profit. 70 of secondgeneration businesses fail in this country. I need to figure out if hank really is committed to this business and if he really wants to be in it. Early indications tell me that he doesnt. Tell me how you think you did before we got here. As far as . As a Business Owner. I mean, to be honest, between you and me, ive felt terrible for the last, i dont know couple years . At least, yeah. Well, you got to be a little sick of it. Yeah, completely. I mean, the stuff that were doing, the 100,000 thats been spent i think youve spent more than that. How much do you think ive spent . I think youve probably spent, like, 150,000. Now let me ask you a question. Have i come back to you and asked you for anything for it . No. And have i even brought it up . No. Why . cause you believe in the business. Thats exactly why. The business has a ton of potential. I think the worry i have, and i didnt tell this to anybody else, is that i dont think you want to do it anymore. Youre a really good guy. But you are a really, really [bleep] businessperson. [laughs] well, i hope youre not gonna put it like that. Do you agree with it . I dont know if im a real [bleep] businessperson. Are you good . I think im pretty good. Im sensing that the weight of his fathers success is a little too much for hank to handle. I mean, you know im gonna make money eventually. It may take you 30 years to get back your investment, but you know im gonna make money eventually. Did you actually just tell me that its gonna take 30 years . [laughs] oh, my god. As i look at these vans, i cant understand why hank doesnt have the phone number on them. So i ended up wrapping all the vans with not only new artwork, but the actual phone number and website. The new van, check it out. Unbelievable. I love the way its going around the whole bottom of the truck. Its very classy. Wow. Yeah, its fantastic. And the telephone numbers on there. Oh, its beautiful. You are . I like this look specifically cause its new, and its different, and its contrasting. I think its awesome. Its very vibrant. Eyecatching, very elegant. Instead of the decal being a photograph, i wouldve done it in a painting instead, cause its easy to buy this online or wherever and just slap it on the truck. We have a grand opening today. And all im getting from hank is dissention. All this hard works finally coming to an end. Im excited about the regrand opening. Its good having marcus around. Hes just got energy and ideas, and they bounce off the room. And everybody gets excited. What are they gonna do next . And i love all the changes. I think him coming here has been absolutely fantastic. I think its great. And i think its what its needed for a long, long time. Whoohoo. I love the windows with the pictures of roses on them. And i like things not being in front of me so that i feel included with all of the other designers. Tell people to come in here. Okay. And tell them were having a regrand opening. Okay. Quickly. Be back in, like, ten minutes at most. Run. Were just doing a regrand opening. Ive invested close to 150,000 so far to fix this business. Weve made over the whole store. And im having a regrand opening today, so that i can have the customers actually testdrive the new process and the new product and tell me if they like it. Have a great weekend. Thank you. The decor inside has changed a lot. I love shopping here. [laughs] the store is definitely inviting. I noticed a lot more prearranged flowers to choose from. They had a Great Variety today. So what do you think, since youve been here before . Really beautiful. No, it feels good, yeah. So you think youll be coming back . Oh, yeah. In a typical year, maarse averages about 10,000 a day. So far, this business has done 13,000 today. Thats almost a 30 increase in business. Im happy with the progress. And theres a clear standout. Marinas doing a great job. And i think its terrific. You do . I do. Its bright. Right. Its cheerful. Shes really taking this leadership role seriously. Shes interacting with customers. Thanks for coming in. Youre welcome. Take care. Shes doing all the things that, quite frankly, hank should be doing. Have you seen hank . I saw hank not too long ago. A successful Business Owner subscribes to one theory. They show up first, and they leave last. Do you know where hank is . I dont know. I dont know if hes gone home or what. I cannot believe he left. Not only is it disrespectful to the employees, its disrespectful to all the customers who are coming here today. He really left . Like, hes gone . As far as i know. He literally disappeared. Im pissed. Oh, hey, hank. Whered you go, buddy . We have a grand opening. Hank, i dont understand why you left. This is [bleep] ridiculous. You need to [bleep] come back here. Ive been here for a week. Im doing all this stuff. This is ridiculous that you left. Turn the car around, get your ass back here, and be a leader right now. For Business Advice and extra scenes from the show, go on to cnbc. Com theprofit. Jimmys gotten used to his whole room smelling like sweaty odors. Yup, hes gone noseblind. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. Turn the car around, get your ass back here, and be a leader right now. Hank has turned out to be a real disappointment. Not only walking away from his regrand opening, but his unwillingness to make the changes necessary. Hes pushed me on everything. He doesnt want to get rid of oldage inventory. He doesnt want to take cash to the flower mart. He doesnt want to raise prices. I need to make sure theres a leader in place. And that leader, for me, is marina. I will tell you that, based on what ive seen since the day where you were taken out of that job, you are a totally different manager. Ive watched you interact with the employees. Ive watched you discipline them properly. Ive watched you work. And you fought through it, and you said, you know what, im not gonna worry about the demotion. Im not gonna worry about anything else. Im just gonna do my job. Thats the attitude that i saw. You should be very proud of yourself. Well, thanks. In my opinion, you know, you need to clearly be the leader when hanks not here and even when hanks here. Theres no question about it. Thanks. Anytime im testing a leader, theres one thing i want to see. Will they stand side by side with me and do the same work . Well, this week, marina did that. Congratulations. Thank you. You earned it. Its been a couple days since the regrand opening, and ive talked to marina. She tells me business is really picking up. More importantly, the new systems that we put in place, well, theyre making things not only more efficient, but morales at an alltime high. Today, i showed up for a meeting with hank, who said he needed to talk. Itll be the first time weve seen each other since he took off before the regrand opening. How you doing, buddy . Good. How are you . Im good. Whats the good word . Well, its been a disruptive two weeks. I appreciate your effort, but whatever you tried didnt really work. Between you and me, im not gonna take your deal. Why is that . We had a handshake on it. Yeah. I mean, theres a lot of stuff that you promised that didnt go through. Like what . Like what . Well, you said you were gonna give us 100,000. I spent over 100,000. Well, i dont know what you didspent. I mean, i didnt see anything. How much do you think ive spent . 150,000. You didnt see all this being spent . Oh, i saw some lights and stuff going up. That was about it. You saw some lights . I saw some how about the gpss that went in the vehicle . How about the Inventory System . I saw some how about the camera system that went in . I saw some graffiti being painted on the garage. How about the new glass being done in the front of the well, a couple panes of glass is not worth 100,000. Hank, are you [bleep] kidding me . No, im not [bleep] kidding. Youre gonna try to tell me that i didnt put money in your business . I dont know what you did, cause you didnt show it to us. Would you like to see it . Well, its too late now. Why is it too late . We had a deal, and you didnt do it. And you said business was gonna go youre kidding me. cause sales didnt go up. In a matter of two days . You said thats cause youre never here. You said a week. Thats cause you dont know how to manage this place. Well, thats your opinion. So youre telling meyou better call your mama and get my money back. Sales didnt go up. In a matter of two days . You said thats cause youre never here. You said a week. Thats cause you dont know how to manage this place. Well, thats your opinion. So youre telling meyou better call your mama and get my money back. Jacob maarse hasnt turned a profit in years. Ive turned this place around in one week. And one thing i know for sure, i care about this place more than he does. Why did you choose to take this path . Because i dont think its a good deal for us. Then why wouldnt you just call and say that . Because i wanted to do it in person. This way . Well, its kind of your style. You know, i learned from you. Youre a punk, hank. Wow, thanks. When hank maarse decided to back out of the deal, i wasnt disappointed. I was pissed. Hello. Clara . Yes. Hi, this is marcus. How are you . When you and i first talked, you told me that, if i spent the money and you didnt want to do the deal, youd give me my money back, so i would like my money back. I mean, hes gonna have to get it from you, obviously. Perfect. Why are you talking to my mom . Mom, you dont have to talk to him. But she actually was im handling it. She was actually on speaker. What did you tell her . You know she cantim telling her what happened. Im telling her that you dont want to honor what we agreed to. Right. 25 of the profits. cause you didnt honor it. You said youd do it in a week, and you didnt. No, i said i was in charge for a week. I didnt say the world was gonna change in a week. Well, you pretty much made it sound like it was, and it didnt. So you happy now that you had to call my mom to do that . Well, i had to call your mom. I mean, its her decision. No, its my decision. Hank, its your moms decision. No, its not. Okay, are you done now with her . Thanks, mom. Ill handle it. Yeah. You just hung up on your mom now . Why are you calling her . You cant handle it . You cant deal with me . For the first time, you grew a set of balls . I dont know. Are you checking . Actually, im looking for em. I cant find em. Okay. Well, whatever. You dont make a deal with someone and then renege. Thats not how it yeah, i know. Hank, you know what, im not gonna waste my time dealing with somebody you didnt keep up your part of the bargain. Im gonna call your mother. Dont touch me. You told me that you thought i spent 150,000, which is not the number, by the way. Yeah. [scoffs] well, why did you say it, then . I didnt say that. You probably said it. Hank, it came out of your mouth. No, it came out of your mouth, marcus, just like a lot of stuff comes out of your mouth. So youre telling me this place sales will go up 200 . [muttering] well, it didnt happen. Hank, are you 49 or 14 . 49. Really . Yeah. Thanks, marcus. Hank, how would your dad feel about you doing Something Like this . Somebody comes in, they put money in with a handshake. Do we have a deal . They work their ass off. We try to make this nice thing. If you want to change the deal, you should be a man about it. But to tell somebody they did nothing. Im not saying you didnt do anything. Your dad would be frickin embarrassed of you. Im not saying you did nothing. Im saying you didnt do what you promised. Get out of my face. Youre a thief and a liar and a cheater. Look, ive made real changes here, but, at the end of the day, you cant fix a person who just doesnt get it. In one week, i spent about 150,000, fixing the systems, repairing a brokendown building, putting things in place that i know not only fixed morale, but they fixed the business. Hank made a big mistake. He mistook my kindness for weakness. This wasnt a charity. This was a business deal, and he shook my hand. So im gonna put a lien on the building, and im gonna do whatever it takes to get my money back, make no mistake about it. Lemonis you guys ready to get started . So tonight were gonna give you an inside look at murchisonhume, the cleaning products company. Now i have a special guest that i brought on, Kathy Ireland is here, and she joined me on this interesting episode. Well call it interesting. Kathy interesting. Lemonis kathy is the c. E. O. And founder of Kathy Ireland worldwide, which is a multidimensional Holding Company that has everything from fashion to furniture to socks to technology. Did i miss anything . Kathy yes. Amber yeah, several things. Lemonis i probably missed several things. Kathy we actually were inspired after doing the show with you. We started a cleaning product line. Lemonis what . Kathy Kathy Ireland clean by naturezway