Games2U is a national mobile entertainment firm that provides different types of games, activities, and robots to your door including interactive Video Game Theaters and Ride Experiences, Hightech Laser Tag, Giant-sized, kid-driven robots, Lifesize Hamster Balls, and many more.
Stuart and David Pikoff set up the mobile video gaming franchise, Games2U. It was pitched on Shark Tank season 2 episode 7.
Games2U was launched in 2008. This nationwide mobile entertainment firm delivers laser tag, giant U-Bots, life-size Hamster Balls, home video game theatres, and 4D rides.
Games2U specializes in birthday parties and delivers mobile video game theatres, 4D experiences, giant hamster balls, and laser tag on trailers and trucks to your location.
Games2U offers a comprehensive party experience for young as well as old. Let’s check out the thrilling venture on Games2U on Shark Tank.
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A Short Overview Of Games2U
Games2U is a mobile entertainment company that delivers a truck full of fun for your child’s birthday party, company event, or charity event. You can consider it a mobile arcade and cinema, complete with a video game truck and other activities.
You can take part in everything from hampster ball racing to rock wall climbing to laser tag and even the colossal water slide. This company provides more than 20 distinct games or activities for children and adults.
Stuart and David Pikoff are the persons who founded Games2U. Stuart served as a director in the real estate industry before graduating from the University of Arizona.
Now, he works as the CEO of Games2U. David completed his graduation from St Edward’s University. He had the same interest and background in real estate development just like his brother. However, he serves as the director of the company.
The brothers came up with the idea when they were preparing a children’s birthday party. They found that the process of planning a party had not altered since they were young.
Traditionally, parents had clowns and magicians come to their children’s birthday parties and possibly even a petting zoo, but today’s children like video games and other outdoor activities.
Parents may find that renting out a place with these activities is very costly. That is why they founded a firm that delivers everything right in your garden.
The business started with a single truck, and the plan was always to develop through franchises. They ultimately developed 140 franchises in over 28 states and generated a combined revenue of $3.5 million. After that, they went to investors to get additional funds.
Games2U Before Shark Tank
Everything is always changing in the modern era. If the people who were born several decades ago think about their childhood memories, they will be astonished to see how things have altered for today’s children.
Nevertheless, specific things have remained consistent. Stuart and David Pikoff returned to their tradition of arranging a child’s birthday celebration and discovered nothing had transformed.
The conventional elements of birthday parties remain magicians, bounce houses, and petting zoos. When the brothers were children, party planning had little change.
A person who wanted to celebrate their birthday in a more “contemporary” or “special” way would need to reserve a space at a venue.
The alternative was to host an event on your lawn, which is often more costly and problematic. Hence, they set out to fix the situation like any savvy business would.
Games2U is a mobile entertainment provider. They deliver a variety of items, all of which are speciality automobiles.
These cars are prepared with a variety of games and activities. Some have 4D movie theatres, while others include arcade areas.
They also have things that can be dismantled for other outdoor activities.
Games2U was developed to provide children as well as their parents with a chance to do something very unusual and memorable during their birthday party without breaking the bank by reserving party venue space.
Stuart and David also knew that bouncy castles and inexpert magicians were not able to entertain the children any more.
The founders of Games2U came up on Shark Tank in search of someone who could assist them in changing the party and event scene completely.
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The Shark Tank Pitch:
The founders of Games2U, David and Stuart, came up on Shark Tank to get an investment of $500,000 in exchange for a 10% equity in Games2U. They wanted to expand their business with the fund.
The approximate yearly valuation of the company was $3.5 million when the founders appeared on Shark Tank but they were able to earn $125,000.
The founder informed the guest host Jeff Foxworthy that he would give a thorough analysis of what a typical event would cost a customer. This was to ascertain that each event would vary.
David told them that a standard event would cost nearly $300 to $400. This would equal about an hour and a half of entertainment for the consumer.
David informed them that it would differ from company to company and that every event was distinct.
A team-building event for a large group of people could cost more than a five-year-old’s birthday party.
Foxworthy was eager to know how much a big company event would cost. David said that a larger event would cost between $1,000 and $3,000.
According to David, an average corporate event would cost nearly a few thousand dollars, although this amount could differ again.
Kevin asked about the worth of the company and told them there was no way a company could be worth $5 million unless it had remarkable sales.
According to Stuart, the company was valued at around $3 million and they were planning to open more franchises.
Stuart replied to Kevin that the company was making quite good money. The franchisees would get a 6% monthly royalty on their sales. Stuart said the company made a profit of about $3 million last year and was on track to make close to $5 million by the end of 2009.
David told Daymond that he wanted to buy a stake in the company; however, they also wanted to use the games. They would buy a stake in the company, but they would also own all of the games.
Stuart informed Daymond that he agreed they would receive patents as part of the deal but said he thought all their franchise locations would be the enigma to their success.
Robert wanted to know whether games2u.com also sold products to franchisees. Stuart said that the sales were made completely from their customers. Stuart declared that each game they sold was their own.
Robert and Kevin were eager to know how this franchise system functioned, and David walked them through things that involved them.
To get a game-changing license, interested potential franchisees would have to pay around $150,000. After getting a license they would get supplies and a storefront.
There were a lot of franchise options available, so the franchisees were granted an individual chance, which included owning their vehicles, and much officially-branded equipment.
David clarified that once a franchisee bought a license, they would get a lot of parts for free. After the purchase of the license, everything was left to the franchisees.
Games2U will yet get a 6% royalty on all their sales up to a maximum of $1,000. Franchisees could earn $500 a month but still have to pay the company $1,000.
Kevin was curious to know whether Games2U was profitable. David said the company earned roughly $125,000 from selling just over $3 million in merchandise last year.
The company has a very low profit margin. Kevin was very upset, and he thought that the company had over five million dollars in profit.
David tried to explain that, while the company wasn’t making much money, they were aspiring to build an infrastructure that could support an enterprise five to ten times the size of its current business.
They were prepared and willing to expand the company to a much larger scale. Robert did not care about the low profit margins and was concerned about the gross profit margins.
David has noted that some of the money that Games2U earned started as angel investors. Robert and Kevin started to convey their anxieties, saying that the company was not making enough money to cover the money it was being evaluated for.
David Pikoff illustrated to them in no uncertain terms how Games2U managed to become one of the fastest-growing franchise companies in the world in the year before, even though the economy was in such a rough spot.
Key Points from the Pitch:
Mobile Gaming Theaters:
Games2U’s primary offering is its caravan of mobile gaming theatres, equipped with the latest video game consoles and an assortment of games. This unique concept enables the customers to enjoy a gaming experience at their doorstep.
Beyond video games, Games2U may have stressed other interactive amusement options, such as laser tag, virtual reality experiences, and more. The company’s versatility in delivering diverse entertainment experiences could have been a key selling point.
Entrepreneurs on Shark Tank often highlight the scalability and market potential of their businesses. Games2U likely discussed its target market, growth projections, and strategies for reaching a broader audience.
Financials and Valuation:
The founders would have submitted their financial metrics, including revenue, expenses, and profit margins. Negotiations on the company’s valuation and the amount of equity offered in exchange for investment would have been crucial aspects of the pitch.
Daymond refused to pay the fellows, and he did not like the way the men had been asking. Usually, when companies enter the IPO process looking for a strategic partner, they already have their finances sorted out.
He felt like a shark had just purchased shares in a company, only to start working for them instantly.
Robert was empathetic to the Pikoff brothers and said he understood that the economy had been hard in recent years. He declared that, in pure money terms, the company was not worth even half that amount.
Daymond was disheartened by Games2U’s too-high expectations, so he chose to drop out of the deal.
Barbara, who remained calm during most of the pitch, chose to leave because she felt like the R&D that would be essential to develop new products would be too costly.
Foxworthy was perplexed by the contradiction of a company that became a tough company while many families were toiling to pay even $400 for a child’s birthday party.
Robert respectfully opposed this approach. Jeff chose to leave the competition because he felt he would have to work long to get his money back.
Kevin declared that how they assessed the company and invited investors to pay it was insulting.
Robert said that games2u would not be able to make any money if they did not make products themselves. So he left the deal.
Kevin was ready to invest $500,000 in exchange for a 51% stake in the business.
But Stuart and David did not want to give him a majority stake in it. They gave a counteroffer of $50,000 for 25% of the company. But Kevin refused that.
So ultimately no deal was made between the founders of Games2U and Sharks.
Games2U has more than 150 franchise locations all over the United States, a master franchise location in Canada, and franchise locations in seven Middle Eastern nations since appearing on Shark Tank.
Games2U, located in Austin, Texas, is planning to get franchising opportunities in Australia, South Africa, and Europe. Entrepreneur Magazine indexed them 24th on its Franchise 500 list in 2012.
Games2U has been praised for its robust franchising organization, encouraging the company to keep growing for years. The company’s website contains information about franchising and party booking.
Games2U parties are a lot of fun, according to friends and relatives who have hosted or attended them. As of 2022, Games2U generates $9 million in annual revenue.
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Stuart and David are still accomplishing an excellent job growing their business from the ground up, even though they couldn’t secure an agreement in the tank.
They are supposed to be the world’s largest source of mobile entertainment today, and their franchisee program continues to be massively successful.
In 2021, Games2U had an approximate net worth of $7.5 million.
In 2022, Games2U had an approximate net worth of $9 million.
Games2U Net Worth 2023
As of 2023, the net worth of Games2U is $9 million.
Despite not getting a deal from the Shark Tank pitch, Games2U prospered after the show. As of December 2023, Games2U is still active in business having more than 150 franchises across the USA, 7 in the Middle East, and the leading franchise in Canada. For further details, check out their website.
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Did Games2U secure a deal on Shark Tank?
No, Games2U was not able to secure a deal on Shark Tank.
Who is the founder of Games2U?
The two brothers, Stuart and David Pikoff are the founders of Games2U.
Is Games2U Still In Business?
Games2U continues to operate, with a headquarters in Austin, Texas, and an active website.
Games2U leads the market in this business strategy despite offering different games and activities.
The franchise system, which now numbers approximately 150, is at the heart of the economic concept.
Games2U Owners in Canada, Central America, and the Middle East actively promote franchise opportunities in the United States and internationally.
Games2U also offers a start-up support package, including obtaining a vehicle, equipment, branding, and marketing.