Transcripts For CNBC The Profit 20240712

Well change the recipes. I mean, that would be the last thing id want to do. And i back them up with my own cash. Its not always pretty. Do you want me to get in your face . cause thats your face. But this is business. Ive lost faith. We need to change dramatically. I do it to save jobs. Awesome. And i do it to make money. This the profit. Sweet petes is a candy store located in jacksonville, florida, specializing in chocolates and candy handmade by master chocolatier peter behringer. So you guys like candy . Mmhmm. Petes love of sweets began at the age of 12, when he started making candy for his moms shop peterbrooke chocolatier. I wouldnt do anything else. Family business was thriving, and life was good for pete and his wife, allison. But after a dispute, pete left the business and was forced to start over from scratch. The last 10,000 we had, we put into this business. Starting over required the help of a financing partner. My whole idea was, find talented people and help support them to get a business going. Sweet petes opened its doors in 2010. By 2012, it was doing over 400,000 in revenue, but it posted a loss of 17,000. The stress of that has caused their partnership to crumble. You are a fraud. You are a fraud. With a colorful array of handmade candy, sweet petes has a phenomenal product. This is how its done. But their lack of Business Savvy could ultimately be their demise. I cant do it. I love candy. And i know if sweet petes has the right process in place, theyll have a winning recipe. Yeah, thats good. Walking up to sweet petes, i can already see an issue. This retail shop is a converted house in the middle of a sleepy residential neighborhood. [door sensor beeps] hello. Im marcus. Im brianna. How are you . Nice to meet you. Hi. Allison . Yes. Marcus. Nice to meet you. Nice to meet you. Hi. Im pete. Pete, how are you . Nice to meet you. You look like youre a mad scientist, with that lab coat. I guess you could say i am a scientist of sorts. I was a little surprised at where the place is located. Its, like, in a neighborhood. When we started this business, we had maybe a couple hundred dollars in our pocket or something crazy. We were not in a great financial position, and so someone offered us this place. And were putting everything we have into building this. How many different types of candies are in here . Hundreds of different types. We make lots and lots and lots of things by hand. Its what sweet petes specializes in thing like caramels, hard candy, pulled sugar, chocolates, toffee. Id like to get down to tasting. My personal favorite is this. Now, everything that im gonna taste you made . Ive got another candy maker on staff whos worked for me for many, many years. I want to try one too. Its the most awesome business there is. It brings some joy to my life. So thats an allnatural cherry, soaked in grand marnier, homemade fondant, and dipped in our belgian dark chocolate. I didnt really get a good taste. I need another one. I didnt either. Can i see the kitchen . This is it. This is the whole kitchen . This is it. Youre doing all your business out of this kitchen . Yes. Yep. Oh, my gosh. Wheres the storage at . Where are the coolers . Wheres the walkin fridge . Yeah, none of that. None of that. No wonder this place is struggling. I walk into a kitchen, and they are maxed out. If they had more stoves, a walkin cooler, drying racks, and space for people to actually work, their business could double or triple tomorrow. And so what is this . Thats the caramel. How you doing, sir . Pretty good. How are you . Good. This is demetrick. Hes our other candy maker. How do you function in this space . Oh, its like a circus act. Were on top of each others necks trying to work, you know . [laughter] okay. I want vanilla. Vanilla . Do you guys want to get started . Petes gonna be teaching your class today. As sweet petes started getting ready for a candy demonstration, the place started filling up with kids. All right, who likes candy here . All me. Yeah, i love candy. Okay. [laughter] so we mixed our sugar. Who wants to eat this . [laughter] so this is the pulling process. Were actually folding air into it. Were not using a pump. Pete came alive in that candy class. The parents were engaged, but the kids were mesmerized. You want to make a mustache . Yeah. [laughter] so well let this sit for just a minute, and then you can bag them up and take them home. Yeah, pretty good. [laughs] we had a wonderful time. Thank you. Thank you very much. Well, we appreciate you coming in. Making candy and teaching people how to do it is a great idea. And its a great model that you could scale across the country. How well do the classes do . Very well. The field trips are the most popular. And then theres also birthday parties. If we had more space, wed do two or three field trips at a time. How much is a class . 15 per person. How much does it cost you to actually put on the class . Like, 2. 68 a person or Something Like that. Wow. Thats good margin. Yeah. The real margin in this business is in these classes. If an average class has 20 people in it, you would be generating 300 in revenue and 246 in gross profit. Those are killer margins. Why did you specifically pick this location . Because our partner said. I own this location. What do you mean partner . We have a business partner, dane baird. He owns half of the company with us. I didnt know that. I thought it was just you guys. We dont see him very often. Is there a lease here on this facility . We haveits up may of next year. Uhhuh, and how much is it a month . 1,400. Can you break down kind of how your finances work, a summary of your finances . Were doing close to 420,000 a year. And does the business make any money today . No. This year we lost about 17,000. But, you know, last year we only lost, like, 3,000, but we paid ourselves more this year so that we could live. The first year, we made 10,000 combined. You cant live off 10,000 a year combined. Weve been fighting with dane over this. He doesnt want us to get paid at all. I tried to get 12 an hour, and hes tried to block that. And its just been a constant fight with this guy. Why havent you guys bought him out . Ive tried, and he wont sell. I mean, we have tried this for six months now. Does he contribute . No. He hasnt in quite some time. We would try to meet with this guy, cause for a while, he was still in charge of our finances. He read this book or something something called the 5hour and this is not 4hour work week. 4hour work week. He loves that book. Who works four hours . And i was pulling my hair out for a while. She, like, finally, some fi i know. I dont have much left. Its like. Not a lot to lose. Is dane gonna come here today . I dont know. I mean, it speaks volumes that he hasnt been involved in this process. I mean, how often do you get this opportunity, and youre not gonna be present . We need to do a batch of hard candy. I want seven cups of sugar, one cup of water. What i want to do is get it to the texture that i get it to. What do we got next . We need to wrap . 100 caramels. I see a dane sighting. [laughs] danes here . Hes outside. Oh. Hey. Look at this guy. Wow. Long time no see around these parts. I know. I know. Thats what happens when you have a reality show, i guess, huh . You just show up. Yeah, you show up. So. You afraid to wrap a little caramel . Oh, you know i know how. You know i know how. Might as well. So you having fun . I am having a good time. Thats good. Hi, peter. Hi. Long time no see. Its still delicious. So what brings you here today . What is it that you want . What is it i want . Yeah. In terms of . In terms of this business. Well, id like it to. Lets start there. To grow so its profitable. I mean, thats and what are you doing to contribute to that growth . Well, i mean, when iwhen i say, hey, look, lets get a Business Plan together and do it, and i just get a blank stare, its hard to go not a blank stare, dane. I think what we clearly said was we would love to talk to you about a Business Plan, but lets handle this issue of fair compensation first. None of us were ever getting paid what were worth, period. Right, but youre youre not contributing like we are. I got over 5,000 hours in this business, right . Three and a half years of work. How many hours do you think we have . How do you figure that . I did i. T. I didi did i bought the building. Buying the building that youyou own the building. Hold on, hold on. The first year, we made 10,000 together. Were well beyond qualified for that. I cannot spend time here in an unprofitable business, knowing that i will never get paid. But you expect us to do it. All right . That is your choice. Youre full of crap. All you do is talk. Stop, stop. Cant make money in this okay, well, then lets part our ways. I dont have a lot of business experience, but ive owned more businesses than you, and i can tell you, if the partners dont get along, its not going anywhere. We have to be able to work together. I have lost faith. We need to change dramatically the business. How do we buy you out . What do you want . What i want isi believe in the product, and i believe in the people. Tell me a number, dane. So i dont want to sell. I do not want to sell. We dont want to work with you. Why cant you sell . Why cant you sell . See, and this is why i cant think, when youre in my face. Im not in your face. Do you want me to get in your face . cause thats your face. Thats so unnecessary. Thats not necessary. Its your choice. Im done. This is just crazy talk that we cant be reasonable. Im trying to participate. You know this is our lifes passion. You know how much we give to this business. Its a hostage situation is what it is. You just try to hold us hostage. Thats all it is. Its not. And whats even worse is, im sure customers have heard this. And youre just taking from us. Youre holding us hostage. See, i disagree. Thank you, but i disagree. Lets just bring it down, cause i dont know. I dont know where to go from here, dane. Bye. Well, that was interesting. Hey, thanks for coming. Hey, how are you . Good. Good. Im dane. Nice to meet you. Yeah, pleasures mine. Well, that was interesting. Yeah, a lot of passion. And so what are your thoughts . Pete and allison are really talented. Uhhuh. But weve never had a plan you know, having some type of, you know, profit at the end of the day. What is your strong suit . Id say this, business development, sales. We created this pretty large fieldtrip business. It was all service related. Did you create the fieldtrip business . I created it with them, to be honest. I mean yeah. If i didnt come in. Yeah. There would nevthey wouldnt have beenthis would never have happened. Right. How much money have you invested in actual cash into this business . Um. Probably around 85,000 in the building and the grounds, and then the buildings yours, right . Thats a private asset. Thats right. So, in this company, how much money have you put in . And then about 5,000 hours worth of labor. No, but in dollars. And thenand then probably about 1,000, 2,000 bucks in the initial inventory. So how much in total dollars have you put into this business . From the start, two grand. 2,000 . Yeah. Thats right. Thats your total investment in the company . Right. 2,000. Thats right. They want to buy you out so they can move on with their life and, you know, obviously, not have that kind of tension. Why wouldnt you just take some nice return on your money and move on about your life and not have all the stress . I think this isthis could go big. Right. I think what i saw there is you believe in the product, but they dont believe in your partnership. Right. What happens if they just left here today, and they went and started somewhere else . I wouldi would takeas a shareholder of the firm, i would take issue with that tactic. But what would be your claim . They left. Theyre employees. They quit. But if they did leave and they started something else, that would hurt the firm. Dane, slavery was outlawed a long time ago. They dont have to stay here. Sweet petes has an amazing product. I love it. But with this toxic partnership, i need to be mindful in how im investing in this deal. I have to come up with a deal that resolves their past issues and definitely minimizes their interaction. If i can get them to agree, were all gonna make a lot of money. Well, yesterday was interesting. In all my years of doing business, i have never, ever seen, ever, more passion from one person in my entire life. The one thing thats obvious to me is this is a partnership gone very bad. And its typically pretty hard to repair. Dane, in your mind, are we at a point of no return . Ive always been an optimist, and so for me, i always think theres hope for the future. How about for you . For me, in a business sense, i dont see how i can go forward. And so whats an alternative in your guys mind . We leave. Yeah. And weand then build again with the right partner. I believe its so lopsided, you know, in terms of our contribution. I feel like hes always trying to look out for whatevers good for him and not the business. Its very unfair. Thats not the case. My wife and i put in some money to get the whole process going. You put in 2,000. Thats right. Id just like to point out, dane, that we would have meetings where you would say, oh, okay, im committed. Im excited. And then wed have another meeting where you were out. Let me make something very clear. I did start to check out, but it was for good reason. And i understand what you were i dont get that check out thing. I mean, if you own 15 of a business and the business is struggling, you dont just check out. No, no, no. It wasnt like that. There was no income coming in, and my sore point with the Business Model is, i really didnt have anything to do that i could feel like i could ever make a living at, cause the business is not scalable. If i was in your shoes. Right. I wouldve come back to them and said, heres what the budget looks like. Here are some ideas i have of growing the business 15 . What do you think . Did that happen . No. I failed in that regard. So its very challenging when you say that you dont like the Business Model. Well, i made a list. [laughs] so, you know, basically, ive done a lot of sweat equity in this business. Okay. You know, sales, marketing, wholesale. Let me tell you something. This is your contribution. If we had to list all of our contributions, it would look like the phone book. I get it. It would look like the phone book. I get it. You think you contribute as much as me, and you dont. Ive tried. Thats just crap. Words are hollow. But iveguys crap. Youve talked, dane, but we need doing. We execute. You have the option to execute, okay . You choose not to. Im sorry you feel that way, cause, you know, i love the business. I love the product. I love you guys. Thats your slippery, evasive crap. Slippery, evasive crap. Okay, okay. I dont want to talk to you anymore. Okay. I think youre just full of it. Youre just full of it. Pete, come on back, bro. Coming up. I have a large order. Is this doable . I dont think thats possible. We have to find a way. We have to find a way. And later. I put my heart and soul into this business, just like you have. Oh, my god, dane. I dont care how [bleep] hard it gets, i will be here. Where are you . 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Its the easiest because its the cheesiest. Kraft. For the win win. Youre just full of it. Youre just full of it. Pete. Pete. Come on back, bro. In any sort of partnership, people bring things to the table. They either bring capital, they bring expertise, or they bring contacts. So what burden are you gonna carry in this partnership . Im not a cook. I would prefer a role that would be not a part of the daytoday, you know, operations of the business. And how are you gonna make it fair . If you dont want to be here, you need to, you know, take a fair amount for your shares. Well, im certainly not interested in selling all my shares. I mean, thatsthats where were at right now. You just want to continue having us do all the work, not really recognizing that work, and ride it out, or make it just really impossible for us to buy you out . Those are kind of the two choices . No, i mean. You know, lets take marcus off the table, cause you may or may not do something. Let me be very clear. I am doing something. So heres my offer. Pete and allison, my offer is 750,000. 250,000 is for working capital. 500,000 is to provide a facility to get us going. For my 750,000, i will own 50 of the business. You will own 50 of the business. Dane, i have no problem giving you back your original investment of 2,000 at 5 interest, but you will get no equity, because you havent put enough in the business to deserve it. Theres no justification for it. You will be 100 commission. If you perform like youve told me youre capable of performing, you will earn 5 equity a year up to 15 , and both of us will contribute to that pot. There just has to be some accountability. Hell be accountable to me. And thats not easy. I could go forward with that. Thats not really an attractive offer for my personal interest. Dane, you put 2,000 in the business. I mean, i wouldi would feel more comfortable selling everything at once the building, the shares. Not gonna happen. You know, danes just being greedy. He wants equity with no effort, and now hes trying to get me to buy his building. He just wants me to give him money like a handout. If you dont agree to this, they leave. And whether its in this building or not or whether its called sweet petes or not, im doing something. [chuckles] i guess i dont have a lot of choices, right . Yeah, weve been fair on our end. Marcus. We have a deal . Yes, sir. Okay. Were sharing 50 50 in the profits. Im 100 in charge, cause its my job to protect this business and to make sure that everybody does the right thing. And, dane, are you ready to actually work . To get back at it . Yeah. So, pete, that means we get to spend a lot of time together. [laughs] boy, how things change. Makes sense. Do we have a deal . [laughs] do we have a deal . Marcus, thank you. This doesnt happen every day. Thank you. Allison, can you get the whole Team Together . Yeah. Come on, guys. Can you all come here real quick . Hi, everybody. All hi. I have always wanted to be in the candy business since i was a little kid. And so, last night, pete, allison, and dane and i made a deal. Ive become a 50 partner in this business. Pete and allison are the other 50 . Im putting up 750,000 to really grow this business. And so were clear, im in charge now. I focus on three things people, process, and product. The people that i have met here are fantastic. I love candy, but more importantly, i love your candy. Itsits damn good. Thank you. But the process is broken. We have to move this location. Its too hard to find. Its hard to get people to come here. The space doesnt work. So were gonna find the perfect location, and in the interim, were going to improve the process. Pete, you got to get out of the kitchen. You cant control the entire process, and you have to let other people do the work. And if you dont, this place will never grow. It will suffer forever. In order to scale this business and sell a lot more candy, were gonna need a new retail location with a lot more foot traffic. Were also gonna need a commercial kitchen that has room for staff, the proper equipment, and space for a lot more raw materials. I did this deal because i think the model is unique. The fact that you actually bring people in and you teach them how to make candy is something that i think separates us from everybody. With these classes generating over 500 margins each class, we should be doing these all the time. If we do three classes a day with 20 students in each class at 15 a head, we would be generating approximately 740 in Gross Profit Per day. Thats 5,180 per week, which equates to 270,000 per year. This business lost a little bit of money last year. But i want to try to get to 4 million, 5 million, 6 million, 7 million. We are this close to making money. All right, guys, lets get to work. Thank you. Thank you, marcus. [telephone ringing] thank you for calling sweet petes. Place an order for a delivery for a party . 100 purpleandwhite lollipops . Thats a lot of lollipops. That is a lot. Thats a lot of lollipops. 100 greenandwhite lollipops, 100 blueandwhite lollipops. You want 100 dark cherry cordials, and you want 600 of what . The party is on wednesday. By wednesday. Let me see how we can get this done for you as soon as possible, and ill give you a call back within an hour, okay . Thank you. Byebye. I have a large order. What is it . 100 purpleandwhite lollipops, 100 greenandwhite lollipops. Is this real . 100 blueandwhite lollipops, 600 salted caramels, and 100 dark cherry cordials, and they want it overnighted tomorrow. Nuhuh. Yuhhuh. Pete, can you make 300 lollipops on tuesday . Let me figure this out. [groans] what i need to know is this doable . I dont think thats possible. Were gonna need extra manpower to get this done. It pains me to turn down an order. I know. We have to find a way. We have to find a way. You guys have had to have large orders like this before, right . Not yes, we have, but usually i have time. Do they have a shelf life, the lollipops . They got a long one. They have a shelf life . Super long. So then why dont you have an inventory of them . I can never get ahead. Well deal with the issue of not having the inventory on hand and the people to make it, but right now its all hands on deck. We have a 2,000 order. We have to get it done. All right, well, we got a lot to do. Lets get working on this. Butter hot. Stick it in the center. Okay. Wrap it over one side. Dane, so why dont we jump in the kitchen . Okay, lets do it. Everyone is working their hardest, but there is a ton to do. So ive asked dane to help out. Lets put in two cups of water. And now is the perfect time for him to demonstrate that he deserves equity. So you could do fondant, whatever you want. Will you help us wrap, dane . Yeah, ill help you a little bit. Hey, allison, i didnt realize it was gonna be all day. So i just plan to head back and, you know, just take it all in. Mmhmm. Ill go talk to marcus. Okay. I appreciate you coming here, analyzing the firm. I just plan to head back. Why are you leaving now . Right now im having difficulty. Yeah, i just feel likeyeah, i did so much work to get this company off the ground and, you know, got that sign up, and the deal was a tough, tough deal. Its about the equity and howhow the deal was cut. I mean, they just got a huge order. Yeah. I mean, cant you help them fill the order and then feel bad later . No. Im not a cook, right . Im not a candy man. If your business is in trouble and you need my help, log on to theprofitcasting. Com. Im up, im up five more minutes. Break me off a piece of that kit kat bar our flight is early tomorrow. And its a long flight too. Once we get there, we will need. Buttercup you know limu,g after all these years its the ones that got away that haunt me the most. [ squawks ] cause youre not like everybody else. Thats why Liberty Mutual customizes your Car Insurance, so you only pay for what you need. What . Oh, i said. Uh, this is my floor. Nooo only pay for what you need. Liberty. Liberty. Liberty. Liberty. Brushing only reaches 25 of your mouth. Listerine® cleans virtually 100 . Helping to prevent gum disease and bad breath. Never settle for 25 . Always go for 100. Bring out the bold™ has a million little sips of sunshine. Its 100 of your daily vitamin c and 100 delicious. Making every moment in the morning brighter. Tropicana sip your sunshine. Making every moment in the m r ng brighter. But not every tomato ends in the same kind of heinz ketchup. Because you cant be everyones favorite ketchup without making a ketchup for everyone. Are we cupping these . Both yes. Hey, pete. Yeah. Yeah, were never gonna get this done. Were running out of time here, so we got to figure out how to train some additional people. After dane walked out, this entire staff has been working their butts off to get this order filled. Unfortunately, were in too small of a kitchen, with way too few people. Its time to start growing. Im gonna get on the phone and try to find some people. Do you think its really necessary . Dont you . The issue is getting them to do things the right way. We dont want something good, sometimes its bad, sometimes its good, sometimes its okay. I dont either. So you dont believe we can give them a repeatable task and show them how to do it three or four times and theyll get it . Yes, i can. Perfect. I got to get em on the phone. Pete, from sweet petes, this is debbie. Hi, pete. Hi. Nice to meet you. Nice to meet you too. Want to head on into the kitchen . Sure. The entire staff is working around the clock to get this order filled. In the meantime, pete is meeting with potential candy makers to come help. Want to make some caramel . I want to make some caramel. Okay. But its obvious to me, he struggles to give up control. Were gonna need to cook 3 4 of a pound of butter. Whats the best way to teach somebody . Probably to have her do it. Okay. Hes gonna have to learn how to let go. How many more candies do we have to make right now . Its about 200 in each case. Oh, my gosh. Take out three tablespoons its unflavored gelatin. Its on the counter. You want me to bloom it or just to chill this right now . Go ahead and pour it in the cup and chill it. We need more clusters. We dont have enough. I think you can mix that a little more. You want me to try again . I think you can keep going. You dont have to stir it so vigorously now. And i dont like toyou know, so wewe dont want to crosscontaminate, and id like to fill it up a little higher. Okay. You want to scrape all of that out. Its a lot of lollipops. Its 400 lollipops. 500. Looking good. We good . Im glad we got it done, and this is good. But we got to come up with a better process. So, as we move forward, we got to have the right amount of staff, and we got to have a certain amount of product thats made in advance so that were not twirling together like a hurricane. Make sense . It makes a lot of sense. Dane already walked out, and he doesnt want to earn his part of the business. Well, i have another dose of reality for him. Im gonna let him know that its time for us to leave this building sooner than anticipated. We need to grow. So the reason that i think youre short in revenue is because you have a very, very tough locationhard to find. You have no foot traffic. None, zero, zilch. Nothing. [sighs] you own this building, right . Correct. If we perfected a 5,000squarefoot space that had a kitchen. Mmhmm. And a classroom and a store. Both yeah. I mean, it could be a great model. Yeah. Weve said that so many times, and he shut us down. We crafted this building, right . We paid for it, right . But you own it, and they paid rent. I understand. However, i financed it with the building and my capital, but the building is your asset. Right. And how much rent did you get . I think its 1,400 a month, so. 17,000. Yeah. So you got a return on capital. And the business lost 17,000. [sighs] yeah. You did get a return on capital. Little bit, yeah. And what was your return on capital . I mean, nothing. I started paying myself 12 an hour. Starting december 1st. But, pete, you getting paid 12 an hour is not return on capital. Its like i mean, you didnt even pay yourself holiday pay. Dee and erika got paid for christmas day. You didnt. Working at publix, you can you know, and the thing is the sick thing is, i would be happy to do it if i was being treated fairly, but you dont treat people fairly. You dont treat anybody fairly. Its very hard to have a conversation like this. I have spent an awful lot of time here, and you guys misrepresent me and my integrity. No, imno, im calling you out on your integrity. Im sorry. Im calling you out on your integrity. Its crap. We are here doing orders with people, and you leave. We stay. You get to leave. Hold on. Hold on. Ive been here till midnight with you. Once or twice, but never on a regular basis. Yes, christmas happens once a year, and i dane, slow down and think about what yourei have to oh, my god, dane. I put my heart and soul into this business, just like you have for three years. Just like i have . Are you really gonna say that . No, no, no, no. I want to understand this. Help me understand. You put your heart and soul into this business just the way i have. Is that what youre saying . Were different people no, im asking its a yesorno question, dane. Yes. Yes. Really . Until we start agreeing on how to grow the business, period. Anytime something gets hard, youre done, youre out. I need to be but we stick. The difference between us two is we stand through it. We grind it out, and were here tomorrow. Well be here the day after that and the day after that and the day after that. I dont care how [bleep] hard it gets, i will be here. Where are you . Nowhere. Youre blowing with the wind, brother. Coming up. Whats the dollar amount youre asking for . 150,000. Thats crazy. Celebrating halloween . Well, if youre celebrating by eating reeses. Then no, youre actually late. Not sorry, reeses. My job is to help new homeowners who have turned into their parents. Im having a big lunch and then just a snack for dinner. So were using a speakerphone in the store. Is that a good idea . One of the ways i do that is to get them out of the home. Youre looking for a grout brush, this is garth, did he ask for your help . No, no. No. We all see it. We all see it. He has blue hair. Okay. Blue. Progressive cant protect you from becoming your parents, but we can protect your home and auto when you bundle with us. Keep it coming. You dont know him. T mobile has a plan built just for you. 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Lease the gla 250 suv for just 399 a month at your local mercedesbenz dealer. I dont care how [bleep] hard it gets, i will be here. Where are you . Nowhere. Youre blowing with the wind, brother. [sighs] you all right . Yeah, im frustrated. And he expects us to work. Its always disproportionate in his favor, and im just tired of it. Why dont you and i go for a walk or just step outside, so you dont. Thanks, marcus. Ill see you in a little bit. Okay, bye, marcus. This sort of dysfunction happens all the time in partnerships, but at some point, you have to move on. Pete has to move forward and keep his eye on the prize. Its not behind him. Its in front of him. Pete, lets take a drive and get away from here for a bit. Dane says hes got his heart and soul in it. And hes critical of failure of ours. But i dont think hes ever tested himself to feel what its like. He was kind of full of [bleep]. cause when it came time for him to roll up his sleeves and pitch in, he bailed. I mightve rushed into a partnership that i didnt. Understand, or we didnt map it out properly. I saw the house, and it ignited a dream in me. I didnt care about any risks or anything because i didnt have anything to lose. So i just did it. I went for it. It takes a lot of guts just to go for it. But im proud i did it. Well, youve proved a lot, dont you think . I mean, look at how well youve done. Yeah. It taughti justcause when i justthat taught me to believe in myself again. And i lost my belief in myself. You probably have experiences like that or seen this before. Partnerships gone bad . Yes. But what overcomes all of that is the enthusiasm and the passion that you have and the exuberance you have and your will to run through any wall and do whatever it takes. You cant replace that. Yeah. Although the dane problem is not resolved, i have to keep Everything Else moving forward. First, i want to show pete and allison how they could benefit from renting space in a commercial kitchen until we can find our own. Look at all the equipment. It gives you guys plenty of space to work. Yeah. We already have extra candy makers standing by. And this commercial kitchen can be used when we need it. While it costs 160 a day to rent, it will more than pay for itself. Well be able to increase production by 500 . You come out, and you start producing larger batches and drive your cost down even more, youre making money. Thats good. Yeah, that is. Thats really good. [laughter] i like that. Yeah. Were gonna rent out a commercial kitchen, and the quickest way to add revenue and profits is to build out an online business. So i had my team build out a new website with an improved ordering system that connects to our inventory and helps organize our production process. When the internet orders come in, itll go into a system so that when he comes in in the morning, the printouts already there. And well see the open orders, the delivered items. It really thats gonna be awesome. That is gonna make everybodys life so much easier, especially mine. Awesome. I also wanted to create a new marketing plan that is centered around pete, because hes what makes this business special. [laughs] for me, this is what would make people remember, oh, thats that fun guy, that candythat candy science guy with the hair sticking up. Yes, its much more fun. A few days after our last meeting, dane phoned me and asked me to meet him at a local coffee shop. After all the drama hes caused, im dying to know what he wants to talk about. Hey, marcus. You called. You wanted to see me. Thanks for meeting. I had to meet with you just facetoface. I couldnt have pete and allison there, but, honestly, sweet pete would not be there if i hadnt gotten involved. What is that you ultimately want . I think that i got a raw deal. I think that so tell me what a not raw deal looks like in your mind. Id really like to get paid for our effort. By who, the company . By the company, by you. Why by me . I wasnt here. But how would i pay you for the past . Right. My contention is, is that the business is a lot moreworth a lot more than just what the Balance Sheet shows. I think theres value in the sweet pete name. You can have it. I dont need the sweet pete name. All right, bottom you know why . cause i have pete. And you dont own pete. I dont, and i never said you dont have any rights to him. I never said i did. So whats the dollar amount that youre asking for . Now youre involved. You see the opportunity. Whats the dollar amount youre asking for . 150,000. For what . Taking the vision and concept and getting the thing going. Dane, you put 2,000 in the business. Thats crazy. I cant believe this guy. He didnt do one thing to grow this company when he had the chance. We made a deal. He shook on it. Now hes trying to shake me down for more money . No way. Youre essentially telling me to give you a check because you failed. Because theyre getting something, you want yours too. Are you asking for a handout . No, im asking for thats how it feels to me. You called me here today. Youre asking me for 150,000. I hand you the opportunity to get up to 15 of equity. You dont want that. You want to basically just hang on for the ride, and youre telling me that im supposed to pay you for all this work. I dont need you. Im notno longer in support of what i agreed to verbally. Im just not. And so youre not honoring your handshake . I am not. Coming up. Youre essentially not gonna be in charge anymore. I politefully disagree, so. She wanted a roommate to help with the cooking. But she wanted someone who loves cats. So, we got griswalda. Dinners almost ready. But one thing we could both agree on was getting geico to help with our renters insurance. Yeah, switching and saving was really easy drink it all up. Good could have used a little salt. Visit geico. Com and see how easy saving on renters insurance can be. [ sneeze ] skip to cold relief fast with alka seltzer plus severe powerfast fizz. Dissolves quickly. Instantly ready to start working. Oh, what a relief it is so fast this halloween will be just like last. Well buy tons of reeses cups for the youngins. laughing then eat them all ourselves. Reeses. laughing then eat them all ourselves. Goldwe believe intriana good we can all afford. Sing it, yeah, yeah from make believe made for everyone. All gold to e to a tshirt that means the world. Yeah, good to me its ohey. Think youre managing your moderate to Severe Ulcerative Colitis or Crohns Disease . Are you ok . I did. But even when i was there. I never knew when my symptoms would keep us apart. So, i talked to my doctor and learned. Humira is for people who still have uc or crohns symptoms after trying other medications. And humira helps people achieve remission that can last. So you can experience few or no symptoms. Humira can lower your ability to fight infections. Serious and sometimes fatal infections, including tuberculosis, and cancers, including lymphoma, have happened, as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. Tell your doctor if youve been to areas where certain fungal infections are common and if youve had tb, hepatitis b, are prone to infections, or have flulike symptoms or sores. Dont start humira if you have an infection. Be there for you, and them. Ask your gastroenterologist about humira. With humira, remission is possible. As a barber, nothings especially for guys who tend to get razor bumps from ordinary razors at home. So when they cant see me, theres gillette skinguard. A razor thats made different and designed just for men with skin thats easily irritated. It flattens the skin and lifts the blade for a shave closer than a trimmer, but not too close for comfort. I mean, its just right. Wabba wabba all new, Plant Powered creative roots gives kids the hydration they need, with the fruit flavors they love, and 1 gram of sugar. Find new creative roots in the kids juice aisle. Hey, allison, i need to see your Shareholder Agreement. Is everything okay . I just finished meeting with dane, and in order for him to go away, he wanted me to give him 150,000. [groans] its become clear to me that we need to part ways with dane once and for all. I just need to look over this Shareholder Agreement so i can figure out how to do it legally. The challenge is, is that the name and the recipes are assets of the current business. And so you guys are shareholders with dane, so ill change the name, and well change the recipes, and well do whatever we have to, but im just not gonna get backed into a corner. Why do we have to change the recipes . cause the recipes belong to the business, right . And hes a shareholder, so the only thing we can do is leave and start all over again. Theres been a lot of work that went into getting things up to this level, and the research and other things that weve done to make these recipes, to have to i think thats our last option. I mean, that would be the last thing id want to do. There may be something. Article three is the capitalization of the company. What it allows for is, it allows for Additional Capital to come in and for a shareholder to be diluted if theyre not able to put in money at the same rate as the other shareholders. If hes not able to put money in at the same rate as you are, then his share gets diluted. Does that make sense to you guys . Mmhmm. So hes not gonna have us backed into a corner. No, he will not. Well be able to keep the name. Well be able to keep the recipes. Hell have a small percentage of equity. But its better than us having to change everything. Thats the lesser of the evils. Ill get ahold of him. Thank you, marcus. Thank you. All right, guys. Thanks. You know, a lot has happened since i met you guys. Ive seen fireworks. Ive seen all kinds of things. When you and i met at the coffee shop, you wanted 150,000 for your equity, and i just couldnt come up with that. But i had a chance to look at the articles of incorporation and the books and the records, and its very clear that if paidin capital money goes into the business, whoever puts it in will get shares, and the other parties are diluted. Essentially, they could put money into this business and dilute you down from the shares you have now to nothing if you dont put money in. And what thatll ultimately do is put them in the drivers seat 100 . And so what im gonna do is, im gonna lend pete and allison money. And theyre gonna put money into the business. So, over time, if we keep putting money in and money in and money in and money in, youre gonna get diluted down 6 to 5 , 3 to 2 to 1 to a half of 1 . By doing that, youre essentially not gonna be in charge anymore, and youll have the ability to put money in at the same time if you choose to. Yes. But i will put as much money in as i have to. Does that make sense . Both yes. Does that make sense to you . Yes, sir. And honestly, dane, the reason i came to this resolution is because when we were here, all of us, busting our fannies, trying to make things work to get this order filled, what did you do . You walked out the front door, and you handed me your apron. And honestly, i dont want to be partners with somebody like that. I think its fair. So were moving on. Right. Is that basically where were at . Were moving on. This follows the operating agreement which we all signed. Both mmhmm. You guys will be in charge, which you want. And so youyou get what you want. And you get what you want. Well, i politefully disagree, so. Okay. The other thing we want to let you know is that were not gonna stay in this location. We have a financial obligation to you as the landlord, i think, for another 15 months. We signed an agreement. Were gonna be honorable, but we needed you to know that as well. Coming up. Turn around. Both oh, my god your journey requires Liberty Mutual. They customize your Car Insurance so you only pay for what you need. Wow. That will save me lots of money. This games boring. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Well, if youre celebratingt by eating reeses. Ween . Then no, youre actually late. Not sorry, reeses. It was built on bluecollar, hard work. Hard work means every day. Getting it right. Its so iconic, you can just sit it on a shelf if its missing, you know it. Your family, my family, when they drink that coffee, and go man, thats a good cup, im proud because i helped make that cup. Its eithor it isnt. Ance of a 165point certification process. Im proud because i helped make that cup. Its either testing an array of advanced safety systems. Or it isnt. Its either the peace of mind of a standard unlimited mileage warranty. Or it isnt. For those who never settle, its either mercedesbenz certified preowned. Or it isnt. The mercedesbenz certified preowned sales event. Now through november 2nd. Shop online and build your deal today. We live with at t and we are well past the honeocupado tom. At t, whats this i hear about you advertising a 100 Fiber Network . Only like a fraction of my customers can get that. Thats it . . You have such a glass halfempty attitude. The glass is more than halfempty you need to relax tom. Oh tom, you need a little tom time. A little tt. Stop living with at t. Xfinity delivers gig speeds to more homes than anyone. Guys, i feel strongly that you got to be where traffic is. Sweet petes has another 15 months left on their lease, but that location is holding back the business. And i did some research, and i said to myself, all right, theres got to be a way to make this work. What do you think . Oh, my god. Whoo thats awesome, marcus. I like the tagline. I love it. So, mike, whos the owner of the building, is here. Would you like to meet him . I would. Okay, great. Mike, good to see you, by the way. Hey, marcus. How are you . This is allison, and this is pete. Nice to meet you. Nice to see you guys. Pete, what do you think, buddy . Love it. Its got a kitchen thats built out, plenty of space for classrooms. We could do a lot of cool things down here. Do you believe it . I cant. Its unbelievable. When you and allison think back to the last four, five years, hows this feel standing here right now, knowing whats behind you and whats ahead . Well, just muscling through things you didnt think youd have to face, right . When you have a child and you think, oh, my sons gonna go to private school, and were gonna give him the best education. And then you find yourself in a position. [voice breaking] not to be able to do that stuff. Yeah. Its damaging on the ego and the pride. It really takes you down to the bottom. That kind of feeling is really depressing. We knew there was a way out, though. I mean, of course we would figure it out. But to figure it out in this way, i mean, its just great. Thank you. Absolutely. Thank you. Its gonna take us just under a year to build out this whole space, especially the way i want it. So i have one more surprise for them to show em how were gonna make money starting tomorrow. Keep looking that way. Keep looking that way. [laughter] look away from the parking lot. Look away. Dont look. Dont look. [chuckles] dont look . All right, ready . Turn around. What . Oh, my god oh, my god. Oh, my god. They look great. That looks so cool. In order to start making more money immediately, i went out and bought us three mobilemarketing vehicles. I got em a pickup truck, a concession trailer, and a corporate delivery vehicle. Thanks, man. Can we look inside . Look inside. Oh, my gosh. [laughter] so you can just make candy right here. This is bigger than the house. Thatd be so sweet. Nobody else has a mobile candy kitchen. No. Nobody. Nobody has this. This is sweet. Nobodys gonna top this. This mobile concept is for now, and its gonna help them get out and increase their business overnight. [laughing]. Im craig melvin. And im natalie morales. And this is dateline. Josh mankiewicz either one of them . Madison holton no. Josh mankiewicz youre not a murderer . Michael dalton im not a murderer. Natalie morales madison holton, high school senior, accused killer. Hannah traylor i literally got chills. This is a huge deal. Chris ogden the father had come home and found a lot of drug paraphernalia. Tanya they were having issues with him. It was hurting her heart to have this happen. Natalie morales distraught parents, a rebellious teen. A family meeting explodes into violence. Josh mankiewicz that situation goes from calm to murder in eleven minutes . Bill franklin yeah. I mean, its a homicide