Megal Reilly and Sarah Nuse started a children’s dance company called Tippi Toes to encourage physical activity, healthy habits, and fun for kids. Megal is a registered dietitian, and Sarah is a former professional dancer.
These sisters came to Shark Tank to grow their franchise business. Let’s find out if the Sharks invested in their business and what happened to it afterward.
| Company Name | Tippi Toes | |
| Founder/Co-Founder | Megal Reilly and Sarah Nuse | |
| Founded | 2006 | |
| Product | Children’s Physical Activity and Dance Classes | |
| Asked For | $30k for 5% equity | |
| Final Deal | $100k for 30% equity | |
| Shark | Mark Cuban | |
| Episode | S2 E2 | |
| Air Date | March 20th, 2011 | |
| Business Status | In Business | |
| Website | Visit Website | |
| Headquarters | Tulsa, Oklahoma, United States | |
| Lifetime Sales | $28M *estimated | |
| Buy and Watch | Buy Now | Amazon Prime |
Business Pitch Episode Recap
Megal and Sarah, along with some children, demonstrated their dance class and physical activity business to the Sharks. Sarah asked the Sharks for $30,000 in exchange for 5% equity in their company, valuing the company at $600,000.
Megal explained that they started franchising their business in 2009 and have sold a total of seven franchises, each costing $30,000. This cost includes dance CDs and other support materials.
Last year, their company generated a total revenue of $268,000, but the profit was only $29,000, which is quite low. A positive aspect is that they finance the franchises, earning interest, and they also collect a monthly royalty of $1,000.
Daymond John said he wasn’t the right partner for this business, so he was out. Robert Herjavec also declined to invest. Kevin O’Leary offered $50k but wanted 51% ownership of the company.
Barbara Corcoran offered $60k for 20% equity, but Megal & Sarah countered Mark Cuban with an offer of $100k for 30% equity, and they closed the deal with Mark.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Mark Cuban | No Offer |
| Kevin O’Leary | $50k for 51% equity |
| Robert Herjavec | No Offer |
| Barbara Corcoran | $60k for 20% equity |
| Daymond John | No Offer |
| Founder’s (Countered) | $100k for 30% equity (Mark Cuban) |
| Final Deals | $100k for 30% equity |
Tippi Toes Shark Tank Update
Mark Cuban and Megal & Sarah’s deal never materialized despite multiple negotiations over the deal amount and equity. However, appearing on Shark Tank helped Tippi Toes increase their franchises from 7 to 38.
As of June 2024, they are charging between $67,100 to $83,500 for one franchise. The company is generating an estimated revenue of $2.5 million annually.
Check out Shark Tank Season 2 Business Update.
Do you want more business updates from Season 2? Go here.
