Youre taking. Margin right out of your pocket. Do you not see that . We overhauled their Business Model and their building. But they recently received news. Marcus lemonis with carcash regarding an eviction. That could shut the business down for good. Andrew its not right. Really, its not right. Lemonis in jacksonville, a talented candy maker tied up in a bad deal. Dane i dont want to sell. Lemonis in 18 months, that tiny company has been transformed into a multimilliondollar business. You did 538,000 compared to like 35,000 the year before. Peter thats a big difference. Lemonis but the biggest move. What do you think we would do with this building . Is yet to come. And a familyrun Clothing Company, once crippled by bad designs and bad tempers, got a new look. Man oh, my god. Lemonis . And new clothing lines. Noemie i love it. Lemonis but some very familiar problems still exist. Nicolas you dont change that. We will tell you whether it is feasible to do. Lemonis its another progress report, tonight on the profit. About 15 months ago, i came to jacksonville, florida, to check out a small candy company, sweet petes. Man yeah, thats good. Lemonis the business was being run by allison behringer, but the Creative Force was pete. Peter we mixed our sugar. Who wants to eat this . Lemonis and while they brought in around 400,000 in sales, they were still losing money. Allison the first year, we made 10,000 combined. Lemonis you cant live off 10,000 a year combined. Business was facing all sorts of obstacles. They were making candy in a tiny kitchen with equipment that was substandard. Even worse, they were in a house in a residential neighborhood with no foot traffic. Why did you specifically pick this location . Allison because our partner said, i own this location. Lemonis that partner, dane baird. Dane this is still delicious. Lemonis . Had made a small investment but wasnt willing to invest any more time or money. Peter how do we buy you out . What do you want . Dane so, i dont want to sell. Peter youre just trying to hold us hostage. Thats all it is. Lemonis but it all seemed fixable, so i made a deal. Were sharing 50 50 in the profits. Im 100 in charge. So, we have a deal . My first move was to untangle the toxic partnership, so i bought dane out. Youre essentially not gonna be in charge anymore. Then set a whole new plan in motion. Peter [ laughs ] lemonis since the shop was hard to find. Look away. Wed make sweet petes impossible to miss. Turn around. Peter oh, my god lemonis the more time i spent with pete and allison, the more i believed in their mission. So i doubled down and purchased this historic mansion in Downtown Jacksonville. The renovation was massive. It took over eight months and cost just over 3. 4 million. This place looks ridiculous. The new sweet petes is 22,000 square feet of color, candy, and fun. The kitchen. Whats up, pete . this place looks great. Peter this is kind of like what you see in the movies. Lemonis the kitchen is industrial grade, and its been outfitted with over 300,000 of the best candymaking equipment you can buy. Peter this will hold 450 pounds of dark chocolate, and this is a cooker. Lemonis in the first month after the move, we topped over 100,000 in sales, more than triple what they were doing in their old location. Peter we couldnt have done it without you. Lemonis send me my christmas order. Allison [ laughs ] lemonis a lot of candy. The stores been open for close to six months, and were generating nearly 200,000 a month. But this is just the beginning of something really big. Today im meeting pete and allison at the candy expo. Peter hey allison [ laughs ] lemonis how are you . Peter how are you . Lemonis look, i know were here to do business and were supposed to be doing research, but honestly, i just love going to the candy show. Its a ton of fun. Allison [ laughs ] peter how do i look . Allison perfect. Peter [ laughs ] lemonis im thrilled with the fact that pete is the face of this company. Peter hi. Woman i loved your show. Allison thank you. Woman congratulations. Lemonis and did you wonder if his hair was really that crazy . Woman i did, yes. Allison oh, wonderful. Lemonis people absolutely love him. Business is up, margins are up, profitability is up. But what i think is even more exciting is pete went from being a candy maker to a candy mogul. Today sweet petes is a north florida destination. Weve got the best candy, but we also offer up great food. This year, well generate almost 4 million in sales. [ beep, Cash Register dings ] but thats not enough, right . The business has to continue to grow. I think the Hotel Markets huge. What i want to try to do is get into their rooms, get into the minibars. So what were working on right now is a meeting thats gonna happen later today at the ponte vedra inn and club, the biggest resort in jacksonville. Is there anything we could do in their colors . Allison i think a jelly beans always good. So if you did pineapple and coconut, thats beachy and its yellow and white. Lemonis okay. I feel like weve put a great collection together, and im excited to see how it goes. Im marcus. How are you . Steven im steven jones. Lemonis nice to meet you, sir. Allison hi. Im allison. Lemonis this hotel is one of the best resorts in all of florida. People from all over the country come here. How many total rooms in the entire property . Steven the property consists of 250 rooms. Lemonis i think its a real opportunity to not only make money, but get the brand out. Steven if youre looking at our colors, is that something you could incorporate into it . Allison yes. Absolutely. John how do i know if this has been in a room for four months . Allison we would codate. However, once your guests are tasting it, thats not going to be an issue. Lemonis we sell about 1 million a year just in sea salt caramels. John wow. Steven a lot here. John yeah. A lot of options and a lot of customization, which is nice, as well. Allison yeah, we would love to work with you. Steven okay. Lemonis this could be one of the most exciting projects that sweet petes embarks on. A typical hotel room would have about 30 worth of candy in each room, with a profit margin for sweet petes at about 50 . If that candy turns over once a week, that means that in an annual basis, it would be 1,560 worth of revenue, or 780 worth of gross. For every 1,000 rooms that were able to secure, that would be an additional 1. 5 million worth of revenue, 780,000 worth of gross profit. Thats just on 1,000 rooms. Woman and if you ever have an event, we have a candy buffet. Lemonis you could even use the mobile trailer. Allison yeah. Steven excellent. Lemonis the fact that ponte vedra is allin on having the product sold there makes me very happy. Its the first time weve taken sweet petes outside of the actual location. Thanks for taking the meeting. Steven our pleasure. Lemonis thank you. John thank you. Yeah. Lemonis appreciate it. This business has had incredible growth. But the momentum we have we have to capitalize on. We have to take advantage of every opportunity. I had a phone call with the Jacksonville Jaguars, a team in the nfl. And theyre looking for a partnership with sweet petes. And when the nfl calls, you listen. Hussein, good seeing you again. Hussein welcome to jacksonville. How are you . Lemonis good. This is pete. Hussein pete, how are you . Lemonis from sweet petes. And this is allison. Allison hi. Nice to meet you. Hussein its a pleasure. Lets go. Lemonis the Jacksonville Jaguars were second in the nfl with concession growth last year, and that presents a real opportunity. Peter oh, my gosh. That is awesome. Lemonis there are close to 70,000 people that come to events here, not only nfl games. Peter that is so cool. Lemonis were gonna have access to the entire stadium. Well be able to sell into the private suites. Peter are you kidding me . Theres like cabanas here. Lemonis well also be able to sell in the concession area. Hussein so, i was thinking this sort of area. These are portable carts. They come in all shapes and sizes. Lemonis and were also being given access to the club level. I think the biggest benefit with the club level, theyre the Decision Makers that come from the corporations that are sponsors at the stadium. Our goal is to meet those Decision Makers that ultimately control how their business spends their money. If hes here, hes gonna get business cards. People are gonna say, i own the bank. I own the big realestate company. Allison corporate orders. Like, we just got one for 48,000. You land one of those. Lemonis pays for it. Allison yeah, and youre good. Lemonis corporations not only buy products for their customers, but they buy it for store openings, new product launches, and marketing campaigns. One corporate client could be anywhere from 50,000 to 100,000 a year. When you go into the club level, there are hundreds and hundreds of companies. To get to 1 million, you only need to shake about 10 to 12 hands. Are you guys comfortable moving forward for this fall, for this season . Peter i think so. Yeah. Lemonis i know that this intimidates pete because he was comfortable producing 400,000 a year. Hes now producing 4 million a year. This stadium deal for pete means more inventory, more staff. This is a game changer for them. With the development of all this new business, whether its the jaguars or the hotel or the constant customers that are coming through the front doors, something has to change. Things definitely cant stay the same. Im concerned that were out of space. What do you think we would do with this building . There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Lemonis we opened up the new sweet petes in Downtown Jacksonville over six months ago, and business is off the charts. Sales are up tenfold. Now were making new deals with the Jacksonville Jaguars and the ponte vedra inn and club. But i have to be honest this thing is bursting at the seams, and something has to change. But i may be staring at the solution. And what do you think we would do with this building . I put an offer in, so were gonna do it. Allison wow. Lemonis you want to see . Allison yeah. I would love to see it. Lemonis lets go. What became available was a building right next to sweet petes. Its a 17,000squarefoot building. Allison wow. Lemonis its three floors. That gives me the opportunity to increase our internet and wholesale business, host more parties, conduct more classes. I mean, honestly, it opens up a whole new world. Allison look at all the windows. Its nice. Lemonis its got great bones, solid walls, but the inside, it looks just like the first building did a war zone. Peter holy. Allison yeah, thats a little [ laughs ] lemonis this building is gonna cost me just under 1 million, and ill have to spend another 1 million to get it right a 2 million investment. Ive already spent close to 4 million at sweet petes, and this will take my total investment to 6 million. Peter you could take the third floor and make that retail space, too. Lemonis in order to be successful in business, you have to be willing to take risk. But it has to be somewhat calculated. We know we need more storage, and we know we need more classrooms, and we know we need more retail. Most of my money is going into real estate, which is a lot safer, but i also know that people like fun and they like candy. Its not a fad. Its here to stay. All right, lets head back. So, the First Quarter in 2015, we did 538,000 compared to like 35,000 the year before. Allison yeah. Peter thats a big difference. Oh. Lemonis with this business doing as much as it is today, what would you say the business is worth . Peter i dont know how to put a value on it because i just see how magical this place is. Lemonis what do you think its worth, allison . Allison i mean, 3 million or 4 million . Lemonis thats right. In a year. Peter that blows my mind. Allison such a short time. I feel like im learning a lot all the time. Lemonis all of us. Me, too. And we are gonna open up another one. Peter so we can just do more. So, this formula works. Lemonis yeah, so now all of a sudden, youre, like, down with it, right . Over a year and a half ago, i was in a very small house with a very small group of people. Id like to get the staff together in the other room. And im proud of the fact that the crew has grown so big. When i was a kid, i always wanted to have a candy store. But i never would have imagined in a million years that i would be on a team with all of you with a candy store that looks like this. I mean, could you ever have imagined . Man i was hoping something would happen. [ laughter ] lemonis and so its been a hard process, right . But we learned that people do make the difference and that when i come here and everything is organized, perfect, and you guys are smiling and you guys did not know i was coming. [ laughter ] all you guys do a great job, and i know that pete and allison are very proud to call you their family. And im proud to be part of the family, right . Allison im not crying. [ laughter ] lemonis when i first showed up at sweet petes, there was four or five people working there. Today there are close to 90 people working there. And this business provides a lot of opportunity for not only people to make a living, but for them to grow with the company. And thats what i think people are ultimately looking for. What are you crying about . Woman im so excited you got a candy store. [ laughter ] [ applause ] lemonis since weve started this show, ive crisscrossed this country, and weve seen over 30 businesses. And ive made 20 deals. But the first one is always the most special. Woman good morning. This is 1800carcash. Lemonis carcash is a new york city autobuying business where you can literally drive in and sell your car for cash. Jon id feel comfortable paying 8,000 for it. Lemonis in 1977, this was a big idea, and bruce baron was the guy who came up with it. The money was good, and when his sons came of age, they joined him. Andrew pleased to meet you. Lemonis but in 2008, the country was in a big recession, and carcash took a big hit. Just a few years later, bruce baron passed away. And his sons andrew and jonathan were left trying to fix what was now a struggling business. Andrew my jobs on the line. Lemonis by the time i showed up at carcash, they were literally just days away from having to shut their doors. Jon were dangerously low on cash right now, which means i cant buy cars. Lemonis the place looked terrible, and their process was totally broken. Jon if i gave 16,000, youd pay 17,000 for it . What do you think . Man thatll work. Lemonis they were selling their cars to middlemen who were walking away with most of the profits. Theyre taking. Margin right out of your pocket. Do you not see that . The financials were not pretty, and even though carcash was taking in 13 million of sales, they were still losing around 200,000 a year, and they were borrowing money to buy time. And with the losses mounting, you could see that the relationship between the brothers had turned toxic. Jon theres no. Way to saym pissed would be an understatement. Lemonis but what was a great idea in 1977 was still a great idea. With a few changes, we could fix this business and scale it and turn carcash into a national brand. So, im willing to give you guys 200,000, but i have to be convinced that the prototype works. Do we have a deal . Jon im in. Lemonis we shook hands and started the overhaul. First, i spent over 350,000 totally renovating this facility and creating a better customer experience. I paid down another 300,000 in debt and liabilities and put aside another 450,000 for working capital. You cant be in the autobuying business if you dont have the money to buy the cars. It turned into a milliondollar deal and was money wellspent. We changed the process. The wholesalers were out. And our average profit went from 1,100 to 2,000 a car. We started advertising, and that brought in a lot more customers. We used to buy and sell around 70 cars a month, but now were closer to 200 cars a month. Within our first year, the revenue went from 13 million to 20 million. And that 200,000 loss turned into a 400,000 profit. Carcash was back in the black. Bruce barons big idea was back on its feet. Carcash has expanded dramatically over the last two years. There are locations around the country, and we have a call center where 1800carcash calls go into. The cars are either going directly to the auction, where were maximizing our profit, or theyre being sold at automatch, a usedcar Retail Center that was started here on the show. But back at our original new york store, were facing a very serious problem. Andrew the landlord has revoked our lease here. Lemonis what do you mean, hes revoked it . Andrew hes trying to use a clause from like 30 years ago to kick us out. Jon he sent this letter. I wanted to show you this letter. Lemonis do you have the letter . Jon yeah, i do. Lemonis can i see it . Jon sure. Lemonis lease dated 1987. Dear mr. Baron, landlord hereby exercises its right to terminate the lease. Jon i grew up here. I was this big running around here. Andrew yeah. Jon to lose this spot would be catastrophic. Lemonis if you go back and you look at what these brothers have been through, for the last couple of years, theyve done an amazing job digging out of a very big hole. Theyre making money. They pay their rent on time, and now this . [ dialing ] [ ringing ] theyve worked their butts off, and ill take this fight on all by myself. Marcus lemonis with carcash regarding an eviction. Leso, these guys have been here carcash for 30 years. Eviction. Youre getting paid. They made improvements to the space, and you just decided you didnt want them here anymore. Unfortunately, their landlord, who didnt want his voice recorded, wasnt willing to budge. Carcash has been in this location for almost 40 years, and they currently pay about 27,000 in rent. Now, i know the new york city market is hotter today than it ever has been, but whats he gonna get, 28,000, 29,000 . After this business being here over 30 years and always paying rent on time . After 9 million in rent . Andrew i feel like my father worked his whole life here. And now just like a flick of a wand and, you know, youre out. It hurts. [ sniffles ] it really hurts. Lemonis standing here looking at andrew, i feel somewhat helpless because this is two brothers who spent their whole life here and they built a lot of memories with their dad. Andrew its not right. Really, its not right. Lemonis i need to kind of get them coll