On one episode of 'The Dragons Den', Jessica and Russel, two entrepenuers, had a product to pitch. Atomic Tea. A tasty little drink with one already successful outlet. Together, the two had already put $125,000 of their own money into the franchise, and we're looking for a litle help and some more money. Their original offer was $125,000 for 25%.
The sharks, having immediately liked the product, and the direction of the franchise, all wanted a bit in the franchise, but none we're willing to goto 25% for $125,00. Instead they all decided to split $150,000 for %50.1 stake in the franchise. Jessica and Russel took their offer.
I beleive this was a smart move on their part, as the decision was probably based on a bigger picture. Giving up a little of the buisness and income, for better growth of the franchise. Putting the franchise first instead of profits.
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