Transcripts For CNBC The Profit 20240713

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Identity. If i cant figure out a way to expand profit and attract new customers, they will never turn a healthy profit. My name is marcus lemonis. I fix failing businesses. So the business only made 50,000 . I make tough decisions. You cant train every class. And i back them up with my own cash. I like [bleep] done right the first time. Thats not on me. Its not always pretty. He starts bringing in equipment here, im gonna break into hives. But this is business. The deals off. I do it to save jobs, and i do it to make money. This the profit. [hiphop music] profit is a Small Group Personal Training studio located in the town of dyer, indiana. While national gyms offers huge facilities and the latest equipment, small gyms like profit offer a much more Personalized Service in a less intimidating environment. We concentrate on doing one thing because without trainers, you cant get results. Michael sena has been in the Fitness Industry for over 35 years. Change direction. First as a body builder, then as a personal trainer. I was a personal trainer before there was a personal training industry. Im a book author, fitness product inventor. Its really been the michael sena show. His wife, tina, who owns 50 of the business, is also a personal trainer, as well as a fitness competitor. Use your core. Five years ago, the senas spent 75,000, their entire life savings, to build profit. The business has not only drained their bank account. Im really uncomfortable with the fact that were not seeing a lot of clients. But even with four employees, it drains their time, which takes them both away from their fouryearold daughter, mia. Both mwah where you been all day . Juggling 15hour days with mounting debt has taken its toll on michael and tinas relationship. Were supposed to be business partners. Let me see, was the second or third breakdown that you almost had with me . Okay. Now youre gonna walk away. Great. I receive hundreds of pleas for help every day. Marcus, can you come help me . We are just a big, hot mess from an organizational standpoint. But michael and tinas extensive fitness background along with their passion and their confidence. Marcus, youre gonna want to be a part of our model. Got my attention. Both ohh i know if these two are willing to take my lead, i can turn profit into a National Brand that can compete with the largest gym franchises in america. [bright music] the first thing i noticed when i walked up to profit was an empty parking lot, a ton of for lease signs, and quite frankly, it felt like a ghost town. This cant be good for business. Hey, marcus. How are you, michael . Pleased to meet you. Michael sena. Welcome to profit. Nice to meet you as well. Thanks for coming in. Well, its bright in here. Yeah, well how many businesses are in this plaza . Four. Lot of empty spaces. Yeah, yeah, yeah. How did you pick this plaza . I really liked the space cause its open. Nice, high ceilings, and its 3,600 square feet. So, michael, what makes this gym different from every other four walls with paint . Well, were not a gym, marcus. Is there a definition of gym that im missing . Were a Small Group Personal Training and wellness facility. No spin bikes . No. Everything is done on your feet. See the cones . They represent our track. We never put more than eight people on the floor. We change the workout every two weeks. And what is allwhat is all this . Well, this is our new sweet senasations line that my wife is really the brainchild of, but theyre healthy. Theyre highprotein. Huh. So, michael, this is a Family Business . Yes, tina and i both own it, 50 50. She contributes, but i mean, you know, its michael senas profit. My names at the top. So, michael, what if i come twice a day . You cant come twice a day. Why not . cause thatswe dont do that. Oh. So i would need to join another gym if i wanted to swim or use the elliptical or ride the bike. Yes, sir. I would only come here for specific results. Results. Do you work out anywhere else . No. Does tina . Yes. Why . Well, she likes to use different equipment that we dont really have here. Right away, i knew we had a problem. It struck me as odd. I mean, the owner of the gym has to go somewhere else to work out . There obviously is something missing here. What does she do there . She gets ready for figure competitions. Lifting. Um, figure competitions is its kind of, like, sissy [bell jingles] oh, is she here . Is that tina . Mmhmm. Are you tina . Tina. Tina, im marcus. Are you marcus . Nice to meet you. Oh, my god, its great to meet you too. You want to know what your husband just said about you . What . Nice things . He said that youre a sissy. [gasps] no, i said the type of onstage activity you do is kind of yeah, we dont want to go there. [laughs] itsyeah. What do you think about that . I think would you call me a sissy . I wouldnt call a woman anything other than thank you and yes, maam. Ohho, youre soft. Youre soft, marcus. Whose idea was this place . I had vision. Is that why you didnt put her name on the business . Thank you. I have a 35year reputation. Whats the answer to that . Why is her name not on the business . Because nobody would recognize her name. They would onthey would recognize my name first. And were worwere working with a brand, and my [laughs] did you actually just tell me that . Yes, i did. Yes, i did. Shes got to earn her stripes. Shes got to earn her stripes. Are you gonna help me . Are you here to help me . Im more motivated to help you than i am him, i can tell you that. Help me help you help me. [laughing] im concerned right out of the gates that michael thinks his name is more important than it is. And i think its getting in the way of him making good, solid business decisions. Hes letting his ego drive it, not the numbers. How much is your rent here a month . 5,800. Are you kidding me . No. In dyer, indiana, in a plaza thats halfempty . Its what everybody pays in this plaza. Everybody thats not here . What do you generate in a typical class . About 120 for every fourperson session. How many total clients . 122. And soi mean, where is everybody . Well, our next session starts in 30 minutes from now. Its prime hours in the morning, and then prime in the late afternoon, early evening. And so in the morning, theres classes . What time . Theres a 6 00 a. M. , 7 00, 8 00, 9 00, 10 00. And then what happens the rest of the day . So from 11 00 to 3 00, were empty. Profit generates 120 per class, and michael says they can have two classes an hour, but theyre closed four hours a day. If they were just occupying those classes at a 50 rate, they would generate 480 a day. Now, if they were open six days a week, that would be nearly 150,000 a year. Oh, marcus, i wanted you to try the protein brownies. Okay. Everythings labeled for you. Its only 41 calories. Did you come up with all these recipes yourself . I did. Im a sweets person, and i wanted a healthier alternative, so i just started throwing some stuff together to see how it tasted. They taste good. [laughs] tinas homemade protein snacks are excellent, and adding juice and snacks to a gymi mean, a fitness studioare good ways to add additional lines of revenue. So you went into your kitchen and started whipping stuff up . Five minutes, everybody when was last time you worked out . Actually, this morning. Is there any time you want to come out on this floor . Whenever you want. [laughs] yeah, yeah, yeah. I have to be honest with you. Lets do it. Nice, tall chest. Nice, strong in the core. Chest up. Rotate okay, straight arms. Straight arms. Thats it. 20 arms straight. I had a great workout, and michael and tina really know what theyre doing. I feel like i worked out every muscle in my body, and i got great personal attention. Watchwhoa [laughs] im convinced if more people knew about this place, it would be packed all day long. Come on, marcus go be a warrior time walk and water. Walk and water. Time good job. Nice job. Good job, guys, nicely done. I think you got some potential. So does your business, so were even. [laughs] i know theres no secret about that. [hiphop music] so, michael, what would the total revenue be for the year . Lets you and i have a mantoman about the numbers. Id rather well well, shes not familiar with them, so yeah. You know youre the boss, right . R[laughs] oh, im trying. I mean, shes a part owner, right . And i probably should know more. Last year, we made about 50,000. What was your total revenue . 429,000. You dont know much about business. [dramatic music] [sighs] michael has a lot of bravado, but anytime you start asking questions and poking at someones business, it starts to really peel back the onion, and i think its the first time in a long time that he actually feels vulnerable. Its just not always easy. Its not always easy. Money gets in the way more often than not. Is a hard to talk about this kind of stuff . No. [stammers] yeah, i dont like toyou think i like to stand next to a man like you and in front of my other people and admit that i cant be successful . I mean, you got to be kidding me. Listen to me. This is what people dont know about business. If you dont have emotion, and you dont have passion, and you dont love what you do, then you shouldnt be in business, because money is a byproduct. Its not the purpose. And you have a purpose. But you gotta be honest with yourself. I feel like youre oprah. You made me cry. Im not trying to be. Imim trying tolisten. Nobodys ever seen me cry here. You made me cry. Youre oprah. [upbeat rock music] what is it that you guys need from me . Lets just put it on the table. We certainly need your business expertise. Absolutely, 100 . What else . We need your consulting. Im not a consultant. I only spend my time on businesses that i invest in, and i dont invest in things that i dont like. Ever. Its people, process, and product for me, and if the boxes dont check, i check out. Do you like our business . I like the product. I like what you stand for. I like what your intentions are. I think your execution is terrible. Im gonna make my first offer. [laughs] but its gonna be to tina. I want to invest in your baked goods business, but i want it to be outside of this business, and i want you to learn how to be an entrepreneur by yourself with your own accounts and your own systems and your own process. I want to brand it with your name and your face, and im gonna provide you a kitchen to be able to make everything. [laughs] the protein bar market is very competitive, but i know tinas bars could stand out. Theyre packed with protein, and they taste great, not like most protein bars that have an aftertaste. If i can fix the packaging, i know we stand to make a lot of money. So well start with 50,000 bucks. Okay. I get the first 50,000 back, and after that, we split it 50 50. I wasnt expecting this, and i feel like i wouldnt want to just make a decision right this second. Im providing the working capital, the facility, the bakers, the raw materials, the systems, the distribution, the processing but youre asking for 50 . Youre arguing with me over 50 when im providing all the resources. Im not arguing. Im letting hermy wife and life partner know what decision youre. Well, shei mean asking her to make right now. But she knows. She can interpret, right . Okay, can i think about it, or do wedo i have to no, you have to decide right now. You should ask for my two cents now. Youre gonna offer it, so go ahead. What do you want . Your name on her brownies just like profit . I have no problem not having my name on them. Well, why would your identity be on it . Yeah. Well, because were partners. Thats why. Her identitys not on yours, on your place that youre partners. Oh, come on. Stop. But its not. Im not gonna get into that. Im not gonna get in a pissing match with you. Yes or no, tina . [dramatic music] coming up. Why you after me . This is not about me or you or whothis is about marketing and making money. And later. You didnt execute. Youre telling me now because you failed at it. You want to walk out of my office, go ahead and walk out of my office. [door shuts] upbeat music no coverup spray here. Cheaper aerosols can cover up odors in a flowery fog. But febreze air effects eliminates odors. With a 100 natural propellent. It leaves behind a pleasant scent youll love. [deep inhale] freshen up. Dont cover up. Febreze. Here at. Snowfest. For your worst sore throat pain try Vicks Vapocool drops. Its not candy, its powerful relief. Ahhhhhh vaporize sore throat pain with Vicks Vapocool drops. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. My offers good right now, and thats it. I dont know what else to say, other than i dont know what you need to sleep over. Yes or no, tina . [dramatic music] lets do it. You sure . Lets do it. Yep. Okay. We got a deal. Lets do it. Were doing it. Okay. I get the first 50,000 out. Okay. And we split everything, and i provide all the resources. You just have to market your fanny off. Okay. You got it. Tinas product is fantastic, so this was an easy decision to make. Ive already invested millions in the health food space, and i think her product has a lot of potential and could lead the pack. Thank you. Okay. Can i hug you again . Yep. [laughs] thank you so much. Okay . Its amazing, thank you. All right. What happened to my offer . I dont believe in singular use facilities. You cannot make a standalone Group Session training model work in the long run. I dont think its possible. It doesnt mean that i didnt have a good workout. Its just an economic thing. So my offer is the following. Im willing to put up 250,000, but its contingent on this business moving to a Training Facility that also has other disciplines inside of it so that we dont have to be so singular. But im on the lease for another three years, marcus. I know, and you have to really figure out a way to get out of the lease, because i want to move to a bigger place at a better location. And thats your responsibility to get that part of it done. [sighs] well, its gonna be tough, but ill handle it. Ill take care of it. So if i put up the 250,000. Mmhmm. I will own 75 of that business, but ill put up all the money. 25 . Ive always owned 100 of everything. [dramatic drumbeat] you want a decision now too. I do. Do you want to talk about it a second, or do you want no. [tense music] [sighs] id be honored and humbled to work with you, i think. Yeah. I know so. We got a deal . We got a deal. Deal. Okay, great. Thank you, sir. Profit is a great product, but it needs a lot of work to make it into a profitable business. I have faith itll get there, but it will require michael to give up control and be open to change. Theres 250,000 for 75 of the business. We have a lot of work to do. Mmhmm. Actually, all three of us do. Its hard to run two businesses at once, so were gonna need to divide and conquer. Both of you need to keep a laser focus on your specific areas. Michael, i want you working exclusively on the gym, and tina exclusively on the food line. Its the only way were gonna be successful. Lets get to work. Lets do it. All right . Thank you, marcus. Thank you very much. [exciting music] morning, guys. I wanted to bring everybody together to kind of give you guys an update on what happened yesterday. I made a deal with michael, and the deal is i agreed to put up 250,000. Michael and i will be partners. Ill own 75 . Michael will own 25 , and i will be completely in charge. I make all of the decisions. The 250,000 will go towards building a new, stateoftheart lifestyle facility that will give us what i believe is going to be a onestop shop environment. Were gonna find a new, larger facility that can accommodate not only the existing profit workout, but a healthy cafe and bakery and a coldpressed juice bar. Were also gonna add other fitness areas and other personal services, everything from spinning to yoga to Group Session training to Life Coaching to diet plans to all of those things. When you add more choices, and you add this fit Lifestyle Concept to a business, youre gonna attract more customers, which is gonna result in more money. We will improve the product, and were gonna develop a brand thats a scalable outside of northwest indiana. I also found another product of that i think is gonna be explosive in the market, which is tinas food product. I want to let everybody know that i made a deal with tina. Her and i are gonna take the protein snack market by storm. I put up 50,000 in working capital, and tina and i are gonna be 50 50 partners. My goal is to get tinas protein bites on the shelf of a Major Grocery store chain. In order to do that, we have to standardize production so we can control the costs and the taste. We also have to come up with some very unique packaging so that it really stands out. Its important to note, i need you guys to be supportive because tina wont be spending as much time here. Shes gonna be focusing on being a woman entrepreneur. Tina, are you ready for this . Yes. So today is a new day. I will be completely in charge, which is a change for michael. But things are going to change, okay . So we have a lot of work to do. Great. Lets do it. All right, lets get to work. Lets do it. Its just goti guess its gonna be challenging to me. Its just that he emphasized it so much. Yeah, right. That hes gonna make the decisions. Hes gonnaright. I may, you know, challenge him on that. Heobviously hes got some ideas on what he wants to do. But itit drives me nuts. Im still an exercise physiologist. Im still a trainer. My dog bowl should be bigger than his. What were doing isnt working. So i respect that you want to stick to your guns, but if its not paying our bills, then we might have to rethink it. Thats such crap, and you know it. My first order of business for profit is to find us a larger location to move into. So im taking michael to an Available Space that i found that i think achieves that. Its gonna be close to three times the amount of rent we pay today, but i think its worth it. Theres a lot of traffic here. Right. In a business like our business. Right. We need to have a lot of eyeballs. Right. And look at the number of cars driving by. Its busy. How are you . Im marcus. Dave van dyke. Hi, dave, nice to meet you. Hey, dave, michael sena. You mind if we just take a tour . Yeah, no, thats no problem. How many square feet . 20,000 square feet. Okay. Whoa, thats huge. Thats a lot. Now im sweating. [exhales] oh, my god, this much space . Lot of employees. Yeah. A lot of revenue. Thats a lot of payroll. A lot of revenue. Restaurant on one side or the other. [exhales] spinning, yoga, gym, Group Training, spa. [sighs] so youre thinking we need all that stuff in here . Maybe wed start a little smaller, right . This place is for big boys. You got to put your big boy pants on. Yeah . You dont think i have my big boy pants on . No. cause you know what big boys do . They recognize the fact that theyre not always right. Michael seems totally overwhelmed by the big space, but i know with this size facility, i could have at least nine streams of revenue. What i like about that is if one part of the business is struggling, i have eight others to hold up the fort. Michael, im only interested in investing in profit in a larger space, a multiuse facility. Thats it. And i will not do business with you unless you reset your mind. You have to learn how to not be a control freak. [sighs] you have to learn to think about your wife as having more stripes than you. You have to get out of your lease. Gotta be like harry houdini. Thats gonna be a challenge. You gotta figure it out. Im concerned about michael getting out of this lease. Admittedly, its a difficult task, but in order for me to be comfortable with him running the business, i need to know that he can problemsolve, and ive only given him one thing to do. [upbeat music] everybody on the bikes. Here we go. Level 12, 80 rpms. Hi, tina. Hi, marcus. How are you . How are you . Im good. I brought erica and jeff with me. Hi. Hi, its nice to meet you. The next order of business is for us to work on packaging for tinas protein snacks. In order for us to be successful, we have to come up with something creative, and it has to be unique. Erica and jeff are part of my ad agency. Theyre gonna be really working with you to kind of develop packaging, branding okay, great. Fantastic. So sweet senasations. Did you guys come up with this caricature . We did come up with it. I think that it cheapens your look. I would agree. Um, i honestly feel that a caricature belongs at a carnival. Okay. Im totally open. These are just preliminary. Okay. Oh, i like the capsule. So the first phase of product that i want to hit the market with is not a bar shape. Okay. I want something round. What id like to try to trademark is a protein bite. The best part of protein bites are the size. Theyre about 1 2 the size of a traditional protein bar. What i love about it is that it gives the consumer a choice of a smaller portion. So everything you make out there in a bar, we have to figure bite size. Its bite size. Yeah. Its a pop. Its one bite. Tina, what does it cost you to make each bite . Its roughly 50¢ to 75, depending on which bite it is and what the ingredient is. So i think the challenge were gonna have is that things got to get down to 10¢, so we have a lot of work to do on terms of cost. For sure. Um and theres Different Things that we can what flavors will we have . Double dark chocolate. I mean, we could certainly do a coco hey, guys, sorry to disturb. Hey, michael. Just wanted to say hello, see what youre doing. Double dark chocolate, peanut butter, White Chocolate raspberry. Just going over some pack what was it, mint . Thats right. Who came up with that shape . These guys did. Very interesting. [tense music] why you after me . This is not about me or you or whothis is about marketing and making money. Mmhmm. So, egos aside, names aside, it doesnt matter. Its about whats gonna sell. I specifically told michael to look after the gym, and he has a lot of work to do in getting out of the lease. He needs to focus his attention where its absolutely needed. Weve already talked about it. Absi know, i know. [bleep]. Coming up. Ive done a lot of [bleep] for you. You talk too much. You know what, this isno. Youre talking too much. I had a few good tricks to help hide my bladder leak pad. Like the old tunic tug. But always discreet is less bulky. And it really protects. cause it turns liquid to gel. So i have nothing to hide. Always discreet. Its how we care for our patients like job. His team at ctca treated his cancer and side effects. So job can stay strong for his family. Cancer Treatment Centers of america. Appointments available now. [funky music] michael. Hey, marcus. [laughs what are you doing . Im just checking out some of the equipment. Yeah . Whats wrong . I kind of feel like the third leg with the whole bar thing. We gotta get past this. This divide and conquer thing is something youre not getting your head around. When we talked, it was about you focusing on the gym and her focusing on the sweet side of things. I mean, you have a lot on your plate already, right . Yeah, yep. I wanted to bring you here today so we could look at some equipment, so lets yeah, all right. Lets make our way around. You know, the kind of things that im looking for, ellipticals, treadmills. Yeah, yeah. Things that are gonna really get people to come back and want to be part of our organization. Right. But i opened up profit to keep it in a small group model, and i dont want people just jumping on a treadmill. For you to make money, you have to start thinking differently. It frustrates me that michael continues to push back on changing the model. Im confident that if we add new equipment, that were not only going to attract new customers, but were gonna retain the ones we have now for a much longer period of time. All of that equals more revenue. I just dont want to see this place open up to be like every other gym. What exists today is a very singularfocus offering. I wouldnt work out there. Tina doesnt even work out there. Shes got to go somewhere else because its missing certain parts and pieces. So heres what i would say. Humor me and pretend like you actually think this is a good idea. All right. [energetic music] these are 1,000 apiece . Yeah. So ill take 12 of them. Okay. This is about 5,000 . Yes. So you probably need about eight of em, michael. Okay. The electromagneticstyle resistance rowers will give you more levels of resistance. Youre losing. Lets get six of these. Six of those. And what was the total . 58,904. Okay. Enjoy this while we can, cause youll be buying the next round when we grow. You got it. Im excited to get started with launching tinas protein bites, so ive taken her to roses, a glutenfree bakery that i own in chicago. I want her to spend time in the kitchen with the chefs so she can learn how to massproduce her bites. Hi, marcus. Hi, tina. How are you . Good to see you. Hello, marcus. Surprised to see you here. This is great. Yeah, yeah. Shouldnt you be back at the, uh, the gym . Uh, yeah, but ive got people covering for me and wanted to be with my wife to support her here today. But, michael, the only reason im bringing this up is weve talked about this. Tinas handling the sweets line, and youre handling the gym. And as part of handling the gym, your job is to work on the schedule and work on driving revenue and work on getting out of the lease. I got the lease. Ii know youre antsy about it, but im worried that youre not antsy about it, because if we dont get out of the lease, we got a problem. [sighs] marcus, with all due respect, im gonna take care of it. I got it. All right. Why dont we head to the back . Michael, if youll have a seat why am i going to the corner . Well, cause it doesnt involve you. Im really getting annoyed that michael continues to focus on the food side of the business. Ive been very clear with him that i want him focusing on his part of the deal, which is the gym, not tinas deal. This routine is getting very old. Sonya, this is tina. Hi, sonya, how are you . Tina sena. Nice to meet you. Sonya. Sonyas my head baker. Shes the brains behind all these products that you see here. So what i wanted to do today is we want to market tinas products, and the goal is we want them to taste good, and we want them to look good. Okay. When we finish making this, from a business standpoint, well know how much went in in raw materials, how much went in in labor, how much went in in packaging okay. Currently, it costs tina up to 75¢ to make a single bite. By massproducing the bite, i can lower the cost to 10¢ per bite. Each package will consist of eight bites, which means itll cost us the 80¢ to make the entire package. Were gonna sell these to retailers for 3 each, yielding us 2. 20 of profit per package. An average order from a national Grocery Store chain would be between 10,000 and 30,000 units. With only one order, we can make between 22,000 and 66,000 in profit. You first. This is like a dream come true right now. This is a good start. Its not bad for half a day of work. Michael will like these. Oh, im excited. Im excited. Thank you. [background chatter] do you feel excluded . [dramatic drumbeat] listen to me. We saidwhen we met a long time ago, we said we would do everything together. Me sitting out here like im some chooch i dont want to get into a fight with you right now. Youre pouting like a baby, like once again, something good has happened for me, and thats a problem for you. For the last 12, 13 years, its been all about michael sena, michael sena, michael sena. Your names been on everything, and ive never said a word about that. Oh, its a oneway street. No, but i really think thats what the problem is. Ive done a lot of [bleep] for you. You talk too much. And you know what . This isno, and this is what youre talking too much. You never let me talk. This is what youre always talking. This is what i was worried about, though, when he did make the deal. Oh, yeah. That i was gonnano. I saw your eyes going, ching, ching no. Like, you think thats all that matters to me . But since we got married, that youre always worried about your own identity. Youve only been making this and now but everybody has their own identity. You already have your own identity. If something goods happening to me, then something goods happening to you and to us. Thats how it should be viewed. This shouldnt be a bad thing, and i certainly dont want it to cause a rift. Its already caused a rift. Well and i gotta swallow it. But thats on you. Okay, now youre the new Martha Stewart here of the fitness business. Im gonna check the cookies. Okay, go check your brownies, your cookies, yeah, go ahead. I hope they burn. Coming up. When you and i made the deal, i was very clear with you. I asked you to do one thing. Youre asking me to jump through a ring of fire. Youre making me out to be the bad guy. What did i do . Introducing a razor that works differently. The Gillette Skinguard has a guard between the blades that helps protect skin. The Gillette Skinguard. Upbeat music everything was so fresh in the beginning. [sniff] dramatic music but that plug quickly faded. Upbeat music luckily theres febreze plug. It cleans away odors and freshens for 1200 hours. [deep inhale] breathe happy with febreze plug. [tense music] robert, come on in. Have a seat. Thanks for coming in today. Thanks for having me. Im a meeting with my lawyer to see if i can get out of the lease. I have three years left, and because its a large commercial lease, not only did i have to sign corporately, but i had to sign personally. Theres a lot of money on the line. Listen, did you have a chance to look over the lease . I did. Okay. The lease is very long, and its very landlordfriendly. [dramatic drumbeat] tell me something good, please. I dont see any way out of it. Theres got to be something in here. Hes got paragraphs crossed out. Hes goti mean i cant let this deal slip through my fingers. Theres got to be something. Theres no way imi can see that you can get out of this lease whatsoever. Then the bottom line is, im screwed. [dramatic music] [hiphop music] im checking in with michael because he called me and he told me hes really struggling with this lease issue, and he wants to discuss it. Hey. Hey, marcus. How are you . How you doing, buddy . Good. You said you wanted to yeah, yeah. Thanks for coming in. [sighs] oh. Well, i wanted to talk to you about the lease. You know, unfortunately, im not in a position to get out of this lease. What did you do to try to get out of it . I read it myself. I know the lease that i signed. Did you talk to your attorney . Yeah, and he said that im in a ironclad lease. Did you hire a realtor to find a subletter . No, i didnti didnt get i didnt get a realtor. That i didnt do. It sounds like you didnt do everything. When you and i made the deal, i was very clear with you. I asked you to do one thing, and that was get out of the lease. I told you that in the negotiation. I told you when we went to look at space. I told you several times. One thing. Yeah, but that one thing is challenging. That one things very difficult. If you didnt agree, and you thought i was being unreasonable while we were negotiating or while we were telling the employees about what was happening, why didnt you tell me then . Youre telling me now because you failed at it. Youre asking me to jump through a ring of fire. Youre making me out to be the bad guy. What did i do . You dont like the deal that tina got. Youre seeing all these good things happen. Youre off distracted looking at somebody elses business, and youre not focusing on everything over here. I wanted you to prove to me that when were partners and im not here, that you can run the business equally as efficiently. You know, im pissed because i dont think michael ever intended to change his business model, and i think thats why he did a halfass job trying to get out of this lease. Marcus, im telling you, i did what i thought i could do. And iit didnt come through, so, you know, thats it. You want to walk out of my office, go ahead and walk out of my office. As far as im concerned, the deals off. [dramatic music] im here. Whats the matter . Oh, man. What . I cant get out of the lease. What did marcus say . He pulled out of the deal. He pulled out of the deal totally. I just feel like i failed you. I failedi let everybody down. You know, im sorry for interfering so much with you and your business, and, you know, i know you gotyou got a lot of great ideas, and, you know, i just feel ive gotten in the way and maybe havent always respected you the way i shouldve as my business partner, and im sorry for that, honey. I forgive you. Thats okay. Its a big failure, you know, that marcus doesnt want to do business with me. No. No, dont feel that way. The gym is still gonna be great. Well take marcus has told us already, and well run with it. Ill focus on it. Well run with that. Its all good. Thanks, baby. I love you. I love you too. Both mwah. Lets go home. Coming up. Sweetheart, look. I got a big surprise for you, my girl. Oh, my god no way [shrieks] if your business is in trouble and you need my help, log on to theprofitcasting. Com. Here at. Snowfest. For your worst sore throat pain try Vicks Vapocool drops. Its not candy, its powerful relief. Ahhhhhh vaporize sore throat pain with Vicks Vapocool drops. Sfx upbeat music a lot of clothes you normally take to the cleaners arent dirty dirty. They just need a quick refresh. Try new febreze clothing quick dry mist. It eliminates odors and refreshes lightlyworn clothing. Breathe happy febreze. La la la la la. Hopefully, youll surprise tina with this. Yeah, im looking forward to it. You know, if it wasnt for tina, id have nothing. Shes gonna love it. I want to do something to make tina feel better about our relationship as business partners. Im gonna make some changes around profit, and shes gonna see how earnest my feelings and intentions are. All right, looks good. Looks good. I cant wait to see the look on her face. Hey, babe. Hey, babe, how you doing . Im good. Baby, im so glad you made it. Yeah, ioh, my gosh. I know. Sweetheart, look. Crazy. I got a big surprise for you, my girl. You d oh, my god, no way [shrieks] and im first thats right. Oh, my god i cant believe it ive been disappointed with michael in the last several weeks. Our name in lights. Lets get inside. But with what im seeing right now, im shocked, and im really happy for them cause im glad that michaels able to see that its not always just about him. Okay, so ive got a few other things i want to show you. Okay. So look up on that top shelf. [gasps] oh, my god, no way. Oh, my gosh i wanted to do the book as well. Oh, my gosh. So for our second edition oh, look at that and notice this, plus tinas fabulous recipes. Yes. Oh, i love it thats not everything. Wow. Now, we even went as far as to change all of the collateral material. The business cards, the letterhead, everything. Oh, fantastic. It was time. Up to this point, michaels been letting his ego drive all of his decisions. And he needed a wakeup call, and me pulling the deal may have been the wakeup call he needed, cause it was not only affecting the business, it was affecting his relationship with tina. Now, i have to tell you, im impressed by this first move, and im starting to look at michael in a whole new light. You know, michael, i have to be honest with you. I know that you had what i would call a colossal failure in not getting out of the lease, which is why we didnt do our deal. That was the only condition i had. But the success that i see in these gestures, i had nothing to do with this. Unprompted, he goes out on his own. You changed the sign, and you changed the book. Those kind of gestures trump any sort of business failure. When youre doing business with people, it comes down to character, and the character that you demonstrated here is much bigger than the fact that you failed at getting out of the lease. So i want to do something small with you. What well do is well do some stuff in here. Ill give you the money you need to kind of grow the business, and well perfect the model, and its still my goal to build it into a National Brand. And now i know who im doing business with. Thank you. Okay . Im proud of you. [electronic music] now that ive decided to move forward, were gonna go very quickly. Despite the fact that were gonna be stuck in our old location for a few years, im committed to expanding the current profit to a multiuse facility. A drywalls gonna go up here with beautiful graphics and retail cubbies. The renovations at profit will cost well over 100,000, but itll be worth every penny. First, im adding a coldpressed juice bar up front so customers can grab a Healthy Beverage anytime. Therell actually be a hallway here. Its gonna be further back. Im adding additional rooms thatll offer Services Like spin, yoga, massage, and pilates, so customers can take more classes and we can generate more revenue. My team and i are completely dissecting this box. [power tools whirring] [funky music] we have 1,500 square feet for yoga, pilates, spin, and massage. Weve got a good thing going here. We just need that to go to the next level. Hey, guys. Hey, look whos here. Hey, marcus. What do you think . Oh, boy. Uh so far . It, uh. Doesnt look like i thought it would, and it doesnt look great. Why are the offices on this side . Well, i put em on this side, and what i was thinking was, lets keep these away from any noise in here. This is different than the layout we talked about. I cant believe what im seeing. Michael and i had a very specific agreement on what this floor plan was gonna look like when i left last time. If were gonna be business partners, hes got to trust the process, and hes gotta go along with the plan. And if he wants to change it, hes got to check with me. The layout we talked about is, you came through this door, and there was a hallway, and i went right or left. Did you want the hallway all the way through . Because i wanted to be able to expand. Now im blocked in. The hallway was supposed to separate the Group Training area from the individual workout and massage rooms. This way, the individual classes and the massage room would not have to listen to the blaring music coming from the Group Exercise room. The hallway had a purpose to it. How do i get out . [dramatic drumbeat] fofor Business Advice and d exta scscenes from the show, gogo ono cnbcbc. Com theprofit. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. This is different than the layout we talked about. The layout we talked about is, you came through this door, and there was a hallway. The hallway had a purpose to it. How do i get out . Sorry, i jumped off yeah, i know youre getting mad at me, but you told me. Im not mad. Im fru go with it and make my own decisions. Yeah, i didnt think you would change the whole floor plan. I like [bleep] done right the first time. Mmhmm. You know, michaels a headstrong individual, and while i want to empower people to do their job, he really overstepped his boundaries. Theres not much we can do about it now. We just need to make the best of it. But i cant have this happen again. I take responsibility. I do. All right, well, you take responsibility. I am taking it. You fudged up the hallway. Okay. Other than that, you like the place, dont you . [laughter] i mean, its got appeal. Profits renovation will be done in a few days, and in the meantime, tina has perfected her recipe for her protein bites. Today, were pitching it to marianos, a Grocery Store chain that has 14 locations throughout chicago. Don, good morning. Were pitching protein bites made with all plantbased protein. Its very good. Very good. What i like is i dont have thethe protein aftertaste that you get in a lot of bars. Okay, good. Can we be exclusive with this item . Absolutely, please do. Love marianos. Tinas hard work is really paying off. She just closed an order for 3,000 packages of her protein bites. Were gonna make about 7,000 on that one order alone. At this pace, i should get my money back within 18 months. Hello, marcus. Hey, marcus, how you doing, my brother . Welcome to the new profit. Yeah. Business is booming for profit. Weve signed up nearly 100 new members. Weve hired yoga and spin instructors that are teaching classes throughout the day. Michael and tina have been able to strengthen their relationship and are now looking forward to the future. Oh, my gosh. I cant believe it of three different episodes episodes that all ended with no deal. Amber poorly. Lemonis the reason were using my office is cause none of the businesses that are on this episode. Amber will allow us back. Well, theyll allow me. They wont allow you. Lemonis okay. Amber i mean, i think the significance of this place is that it is a place where all of your businesses have worked out well inkkas, flex watches. Lemonis thats cause they did what . Amber they trusted the process. Lemonis they right here. Amber they trust the process. Tonight, the people on these episodes did not trust the process. Lemonis they did not trust the process. These three episodes represent frustration, dishonesty, and they represent ego. Those are the things that amber why are you angry at me . Lemonis im angry am i angry at you . Amber why dont we watch

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