In 2009, College Hunks Hauling Junk appeared on the first episode of Shark Tank. The company was founded by Omar Soliman and Nick Friedman. They only proposed their spin-off idea, College Foxes Packing Boxes, but no deal was struck. As of 2024, College Hunks Hauling Junk is estimated to be worth $250 million.
About the Founder
Omar Soliman was born in Washington, D.C., and grew up working in sales and delivery at his mother’s furniture store. After graduating from high school, Soliman enrolled at the University of Miami to pursue a degree in business administration.
Nick Friedman studied economics and Spanish at Pomona College. The two entrepreneurs have been best friends since childhood. Although they took different paths in college, they have always stayed in touch.
Founder of University Handsome
As a capable assistant in his mother’s furniture store, Omar is often asked by customers to move old furniture. Omar regards this as a side job, and Nick often helps.
In 2004, Soliman won $10,000 in a business competition, which he used to start College Hunks Hauling Junk with a friend. The startup started out as a junk hauling business, but has since grown into a full-service hauling company.
Two years after founding, they had transported 4,000 tons worth of trash. It was a huge success, so the founders started franchising in 2008. They also started College Foxes Packing Boxes, a packing and sorting company.
Shark Tank
By 2009, Nick and Omar’s original business was thriving, but their new venture had yet to take off. They began marketing their business, hoping to acquire 25% of College Foxes Packing Boxes for $250,000. The Sharks quickly began talking up College Hunks.
The idea of a spinoff irked the Sharks because they wanted a piece of College Hunks. After some consideration, the entrepreneurs offered to buy 10% of the parent company for $1 million. Kevin O’Leary was outraged at the valuation and called them greedy.
All Sharks members quit except Robert Herjavec, who made a reasonable offer of $250,000 for 50% of the Foxes and 10% of the Hunks. After some consideration, the founders rejected the deal.
After Shark Tank
Despite not reaching a deal, Omar and Nick took College Hunks to new heights and abandoned College Foxes. In January 2022, the company announced that it had surpassed $200 million in annual revenue and now has more than 160 franchise partners across North America.
These people may have set up a trap just to be on the show to avoid giving up their equity in College Hunks. In 2013, The New York Times reported that contestants had to pay ABC a 5% equity stake or 2% royalties to be on the show. This lasted until Mark Cuban eliminated the clause.
Currently, the cost to become a franchisee ranges from $158,700 to $283,500, according to FranchiseChatter.com. The franchise business has experienced tremendous growth over the past 10 years.
In 2013, the average franchise revenue was $442,000, which grew to $1.6 million in 2021. In addition, three franchise partners made the 2021 Inc. 5000 list of the fastest-growing private companies in the U.S. As a result, the company is valued at $250 million.
In addition to College Hunks, Omar and Nick also started a similar business in 2011 called Trash Butler. This is a valet trash removal service for multi-family communities. This business is another huge success for them in the trash collection industry!
Categories: Shark Tank
Source: dut.edu.vn
