When entrepreneurs step onto the Shark Tank stage, they face intense scrutiny and the often cutthroat nature of investment negotiations—in Episode 101 of Shark Tank, Omar Soliman, and Nick Friedman presented College Foxes Packing Boxes, an offshoot of their already successful College Hunks Hauling Junk franchise. The pair aimed to secure funding for the new business without giving up equity in their flagship company. However, the Sharks were more interested in the established business rather than the spin-off. Ultimately, the founders left without a deal, a decision that would later prove to be a strategic masterstroke.
Net Worth and Financial Success
As of recent estimates, Omar Soliman and Nick Friedman have amassed significant wealth through the exponential growth of College Hunks Hauling Junk. The company, with its $200 million+ annual revenue, has translated into substantial personal fortunes for the co-founders. While exact figures fluctuate, reports suggest that each entrepreneur has a net worth in the range of $50 million to $100 million, reflecting their strategic decision to retain equity and scale through franchising rather than selling out early.
Their financial success stems not just from revenue but from profitability, brand expansion, and diversified investments. By maintaining control, they have leveraged their brand into multiple revenue streams, including franchise fees, moving services, and corporate partnerships. Their story serves as a blueprint for entrepreneurs who prioritize long-term financial independence over short-term gains.
Key Takeaways
- Entrepreneurs Stood Their Ground: Omar Soliman and Nick Friedman refused to give up equity in their successful College Hunks Hauling Junk business, ensuring long-term financial control.
- Sharks Wanted More Than Offered: Investors demanded equity in the parent company, not just the new spin-off, College Foxes Packing Boxes.
- Shark Tank Isn’t the Only Path to Success: Despite leaving without a deal, College Hunks Hauling Junk grew into a $200M+ annual revenue business.
- Franchising Led to Scalability: The company expanded to over 160 franchises across the U.S. and Canada.
- Strategic Partnerships Over Equity Deals: Instead of accepting a Shark Tank deal, the company later secured private investments while maintaining ownership.
Overview
| Category | Details |
|---|---|
| Name | College Foxes Packing Boxes |
| Founders | Omar Soliman, Nick Friedman |
| Industry | Moving and Organizational Services |
| Product | Packing and organizational services |
| Funding | Self-funded pre-Shark Tank |
| Investment Ask | $250,000 |
| Equity Offered | 25% |
| Valuation | $1,000,000 |
The Birth of College Hunks Hauling Junk
The origins of College Hunks Hauling Junk date back to Soliman’s college years. His mother ran a furniture business, and he noticed that customers often wanted their old furniture hauled away when purchasing new pieces. He saw an opportunity to provide this service and persuaded his mother to let him handle the hauling. Over one summer, the venture generated $8,000, proving the demand for such a service.
Encouraged by this success, Soliman and Friedman formalized their idea by entering an entrepreneurship contest at Soliman’s college. They wrote a comprehensive business plan and submitted it for evaluation. Their efforts paid off when they won the first prize of $10,000, giving them the capital and confidence to launch College Hunks Hauling Junk.
Their business model was straightforward yet effective: employ college students to provide moving and junk removal services with professionalism and enthusiasm. Over time, the company expanded into a franchise model, gaining national recognition for its reliable services and strong branding.
Shark Tank Appearance
When Soliman and Friedman entered the Shark Tank, they sought a $250,000 investment in exchange for 25% equity in College Foxes Packing Boxes, a new business that would focus on packing and organizational services. They positioned the venture as a complement to their existing junk removal business, employing college students to provide top-notch service in moving and organization.
However, their pitch quickly met resistance from the Sharks, who were primarily interested in the already-established College Hunks Hauling Junk. Robert Herjavec, seeking clarity, asked if the deal included equity in the parent company. The entrepreneurs clarified that they were only offering a stake in College Foxes Packing Boxes, not their profitable junk removal business.
Kevin O’Leary was the first to push back, stating, “We’re not giving you a dime without taking a big piece of your existing business.” His insistence on gaining equity in the well-established College Hunks business set the tone for the negotiations.
Shark Tank Negotiations and Outcome
The Sharks continued to press for a stake in the parent company rather than the new spin-off. Kevin O’Leary made an aggressive offer of $250,000 for 51% of both College Hunks Hauling Junk and College Foxes Packing Boxes. This was immediately rejected by Soliman and Friedman, who were unwilling to relinquish control of their proven business.
Daymond John expressed concerns about the business model, particularly the idea of young women being on call for moving jobs, citing safety concerns. Kevin Harrington and Barbara Corcoran also bowed out, believing the valuation was based on projected future earnings rather than current performance.
Robert Herjavec made a final offer: $250,000 for 50% of College Foxes Packing Boxes and 10% of College Hunks Hauling Junk, claiming the latter would act as collateral. However, Soliman and Friedman declined, unwilling to part with equity in their core business. They left the Shark Tank without a deal, determined to grow their business independently.
Strategic Decision and Post-Shark Tank Growth
Soliman later remarked on their experience, stating, “That’s why it’s called the Shark Tank, not the Bunny Tank. They smelled blood in the water, they saw a successful business, and they jumped all over it.”
Despite walking away empty-handed, the decision to retain full ownership of their business proved to be a brilliant move. In the early seasons of Shark Tank, companies that secured deals had to give up 5% of their sales to the show’s production company. Had Soliman and Friedman agreed to a deal, they would have sacrificed a significant portion of their revenue in addition to the equity offered to the Sharks.
Fast-forward to 2021, and College Hunks Hauling Junk had grown into a powerhouse with over 160 franchisees and annual revenue exceeding $200 million. The decision to retain full ownership allowed them to maximize profits and maintain control over their business trajectory.
Conclusion
The journey of College Hunks Hauling Junk and its spin-off, College Foxes Packing Boxes, serves as a prime example of entrepreneurial resilience and strategic decision-making. By refusing to give up control of their successful business, Omar Soliman and Nick Friedman demonstrated confidence in their long-term vision. Their ability to scale through franchising and secure strategic investments while maintaining ownership highlights the importance of calculated risk-taking in business.
Today, their company stands as a testament to the power of perseverance, adaptability, and business acumen. Their Shark Tank experience, while challenging, ultimately validated their business model and reinforced their belief in self-sufficiency. Aspiring entrepreneurs can learn valuable lessons from their story—most notably, that sometimes, the best deal is no deal at all.
