College Hunks Hauling Junk was featured on the first episode of ABC’s Shark Tank a few years ago.
The innovative company had already made co-founders Omar Soliman and Nick Friedman millions, even though we had only been franchising for two years.
On the show, Omar and Nick offered an idea for a professional packing and organizing firm, College Foxes Packing Boxes.
The venture capitalist “sharks” were skeptical at first, but they eventually gave funding in exchange for a percentage of College Hunks Hauling Junk ownership.
They questioned why they should invest in a novel concept when they might invest in an established winner. Nick and Omar did not accept the proposals, opting to own the College Hunks brand fully.
What are College Foxes Packing Boxes?
College Foxes Packing Boxes was intended to be a moving service staffed by college-aged women. The concept was inspired by the success of their College HUNKS Hauling Junk & Moving company.
Omar Soliman and Nick Friedman appear on Shark Tank episode 101 with their new venture, College Foxes Packing Boxes, a spin-off of their previously successful “College Hunks Hauling Junk.” The enterprise grew out of Soliman’s mother’s furniture business.
When his mother’s new goods arrived, the college student noted that many of his mother’s customers offered to pay to have their old furniture carted away.
He persuaded her to let him offer the service, and his junk removal business made $8,000 in one summer.
An opportunity arose after Soliman and Friedman returned to school. Soliman’s college held a competition for young entrepreneurs.
Soliman and Friedman created a formal business plan and entered it into the competition. When the couple returned from Spring Break, they found out they had won the $10,000 first prize. The concept of College Hunks Hauling Junk was conceived.
Who is the Founder of College Foxes Packing Boxes?
Omar Soliman and Nick Friedman founded College Foxes Packing Boxes as an outgrowth of College HUNKS Hauling Junk and Moving.
The two are still on the board of the nation’s fastest-growing garbage removal and moving franchise today.
College Foxes Packing Boxes Before Shark Tank
Nick Friedman and Omar Soliman created College Foxes Packing Boxes as an alternative to the boring individual who comes into one’s home to pack boxes.
Nick and Omar got the concept from their other successful business, College Hunks Hauling Junk, a junk removal service.
After Omar won $10,000 in a sweepstake, Nick and Omar began their first business. Nick and Omar significantly increased College Hunks Hauling Junk with their entrepreneurial skills and began franchising the company in just over two years.
Their accomplishment earned them top rankings in various periodicals, which only enhanced their exposure and sales.
They applied to go on Shark Tank in the hopes of expanding their new business idea and were accepted for Season One.
College Foxes Packing Boxes on Shark Tank
Omar and Nick entered the Tank and launched right into their pitch, asking, “Who would you rather have packed your boxes?” with the options being an inexperienced, unlicensed mover or a professionally trained “college fox.”
They then announced that they were looking for $250,000 for a 25% stake in the company.
Omar and Nick then discussed the backstory of their already successful firm, College Hunks Hauling Junk, and how the Sharks would be investing in this entrepreneurial background and experience.
Daymond and Robert raised the issue of not offering an equity part in their profitable firm right away.
Kevin O’Leary also expressed his dissatisfaction with why he would invest in a new firm without a stake in the present one, given that there is no guarantee that the new one will thrive.
Omar and Nick attempted to explain their request by declaring that they would employ a CFO for the new firm, but this irritated the Sharks even more because it implied that Omar and Nick would be spending a significant amount of time on the old business.
Kevin O’Leary was looking for the financials of a successful business. Nick stated that they made $500,000 last year with a profit margin of 20%.
Impressed, Kevin made a $250,000 offer for 51 percent ownership of both enterprises, common equity ask in Season One that elicited a laugh from Omar. Robert proposed that Omar and Nick go out and devise a new offer for both firms.
After some debate about how they built the original business from the ground up and not wanting to sell themselves short, Omar and Nick returned with a new offer of $1,000,000 for 10%, which elicited laughs from everyone.
Kevin O’Leary brought up more disagreements, this time overvaluation, along with his usual insults, but Omar and Nick stood firm on their valuation. Kevin O’Leary stormed out, very agitated.
Daymond questioned the business strategy of College Foxes Packing Boxes rather than the valuation or the separation of the firms. Daymond went out as a result of this.
Kevin Harrington genuinely applauded Omar and Nick on expanding College Hunks Hauling Junk. Still, he indicated that they valued the business on where it will be in the future rather than where it was now. As a result, he also left.
Barbara agreed with Kevin Harrington’s comments and rationale and went out as well. Robert was on the fence, but he was impressed by Nick and Omar’s confidence rather than arrogance in defending their firm.
Because he believed in Nick and Omar, Robert made a $250,000 offer for 50% of College Foxes Packing Boxes and 10% of College Hunks Hauling Junk. He referred to the 10% of Hauling Junks as “collateral” if College Foxes did not work out.
The other Sharks all thought Robert’s offer was incredibly generous. However, Omar and Nick disagreed and turned down the request due to their concerns about the firm’s direction.
What Happened To College Foxes Packing Boxes After Shark Tank?
College Foxes Packing Boxes never gained traction after appearing on Shark Tank. They initially placed “the business on hold” but most likely chose to devote their full attention to College Hunks Hauling Junk.
On the other hand, Omar and Nick’s original business has been extremely successful, with their franchise having more than tripled in size since the show’s airing, with sixty-eight sites.
Nick and Omar have written a book titled “Effortless Entrepreneur” and appear on popular media sites such as Fox Business News.
Omar and Nick’s pitch has taught future entrepreneurs many blunders to avoid when entering the Tank.
The first is that if an entrepreneur runs a successful business and asks the Sharks to invest in a fresh idea, they are unlikely to win a deal because there is a conflict of interest on where their attention would be focused.
Nick and Omar also attempted to evaluate their firm based on where it would go in the future rather than what it was currently worth, which the Sharks never agreed on.
The Sharks in the first season were significantly greedier for equity, possibly due to the huge risks and the requirement to control every project they invested in, as there was no record of how successful support from the program could be.
The Sharks, however, rarely ask for high equity in later seasons due to a variety of reasons, including smarter entrepreneurs, well-established businesses joining the show, Mark and Lori joining the set, and seeing the potential in the industry because of who they are and the Shark Tank effect.
Was there a deal on Shark Tank for the College Foxes Packing Boxes?
Robert Herjavec offered Nick and Omar $250,000 for 50% of College Foxes plus 10% of College Hunks, but Nick and Omar declined the offer and left the Shark Tank without a contract.
College Foxes Packing Boxes didn’t take off as expected, but College Hunks Hauling Junk and Moving are still operating.
The company recently gained recognition as one of the fastest-growing franchises in Canada and the United States, with over 130 franchises nationwide.
How College Foxes Packing Box Makes Money?
The revenue model of College Hunks comprises franchise fees, junk removal costs, and relocation fees.
The initial franchise cost is from $40,000 to $60,000, while the total investment required to launch a College Hunks business ranges from $95,700 to $231,200.
Franchisees must pay additional licenses and permits, training, rent, leases, security deposits, equipment and tools, and insurance.
The cost of junk removal depends on how much junk has to be removed and what necessary vehicle. Prices might range from $100 to $600.
Moving costs vary by area and include the price of the vehicle and an hourly payment for their services.
What are the Sales, Revenue, and Valuation of College Foxes Packing Boxes?
Nick Friedman and Omar Soliman had bootstrapped their junk collection firm from one cargo van to $3 million in just three years before coming on Shark Tank!
Today, the company has over 2000 employees and over $100 million in revenue, with some franchises earning over $2 million.
Competitors of College Foxes Packing Boxes?
The junk removal and moving sectors are extremely competitive, with well-known companies such as 1-800-Got-Junk-LoadUP, U-Haul, Two Men and a Truck, and American Van Lines.
By identifying itself as the “viral moving company,” the company has lasted over a decade in operation.
Their catchy, engaging, colorful, yet professional brand image has aided in its growth by allowing customers to capture and share their experiences with the company on social media.
Reviews of College Foxes Packing Boxes
College Foxes has earned hundreds of positive reviews from clients who describe their service as professional, friendly, prompt, and efficient.
Forbes magazine rated the company one of the country’s top job creators in 2015, and Entrepreneur magazine ranked it first in the carrying rubbish category in 2018.
Move.org recognizes College Hunks as the best overall business for rubbish removal and moving in 2021.