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1
00:00:06,110 --> 00:00:09,160
- Holy shit. Wow.
2
00:00:09,179 --> 00:00:12,159
[tense music]
3
00:00:12,179 --> 00:00:18,179
♪ ♪
4
00:00:18,199 --> 00:00:19,219
Hold up...
5
00:00:20,000 --> 00:00:21,220
with a TV in here...
with a TV!
6
00:00:22,000 --> 00:00:23,120
[light laughter]
7
00:00:23,140 --> 00:00:25,120
And a fuckin'--
two frigerators.
8
00:00:25,140 --> 00:00:28,210
- What do you think they're
paying in rent here?
9
00:00:28,230 --> 00:00:31,010
- Ugh. Oh, man.
10
00:00:31,030 --> 00:00:32,220
- The frames alone.
- Mm-hmm.
11
00:00:33,000 --> 00:00:36,140
- Are you kidding me?
Pictures of beets?
12
00:00:36,159 --> 00:00:40,059
- It makes Unrealistic
look like a toilet.
13
00:00:40,079 --> 00:00:42,189
- Got to sell a lot of burgers
to pay for this place alone.
14
00:00:42,210 --> 00:00:45,200
- Don't get me going.
- You're very generous.
15
00:00:45,219 --> 00:00:48,189
- The hammer's coming down.
16
00:00:48,210 --> 00:00:50,130
[spray-paint can rattling]
17
00:00:50,149 --> 00:00:53,129
[edgy music]
18
00:00:53,149 --> 00:01:00,189
♪ ♪
19
00:01:08,170 --> 00:01:11,210
I hadn't seen
how wonderfully booming
20
00:01:11,230 --> 00:01:13,140
the business was
behind the four walls
21
00:01:13,159 --> 00:01:15,069
of the corporate office
while the rest of the business
22
00:01:15,090 --> 00:01:17,000
outside of it was struggling.
23
00:01:17,019 --> 00:01:19,059
We're trying to build a real
business here, you know.
24
00:01:19,079 --> 00:01:22,069
You've got these giant offices
and so many employees,
25
00:01:22,090 --> 00:01:23,200
so many items on the menu.
26
00:01:25,200 --> 00:01:27,090
What little money
was coming in,
27
00:01:27,109 --> 00:01:29,039
there was just a lot of money
being spent
28
00:01:29,060 --> 00:01:31,020
in a very,
very irresponsible way.
29
00:01:31,039 --> 00:01:32,109
We've been in business
for some years now,
30
00:01:32,129 --> 00:01:34,079
but it's still
a small business.
31
00:01:34,099 --> 00:01:36,149
This is a great opportunity
to build a family business,
32
00:01:36,170 --> 00:01:38,070
pass it on
to future generations,
33
00:01:38,090 --> 00:01:41,040
and people need to be
financially responsible.
34
00:01:41,060 --> 00:01:42,150
[scoffs]
35
00:01:42,170 --> 00:01:44,070
I don't know,
do people think there was
36
00:01:44,090 --> 00:01:46,180
just an endless amount
of cash flow to burn through
37
00:01:46,200 --> 00:01:48,040
or if people just assume,
38
00:01:48,060 --> 00:01:49,210
"Well, don't worry;
Mark's got deep pockets,"
39
00:01:49,229 --> 00:01:51,159
they got another think coming.
That's not happening.
40
00:01:51,180 --> 00:01:53,100
I don't think anybody should be
deciding where or when
41
00:01:53,120 --> 00:01:55,040
they're gonna spend my money.
42
00:01:55,060 --> 00:01:57,040
We need new leadership
that will hopefully be able
43
00:01:57,060 --> 00:02:00,040
to help my brother Paul
take us to a healthy,
44
00:02:00,060 --> 00:02:02,120
robust franchise.
45
00:02:02,140 --> 00:02:05,120
[moody music]
46
00:02:05,140 --> 00:02:12,190
♪ ♪
47
00:02:18,050 --> 00:02:21,000
- Hey, honey, it's me.
Give me a call when you can.
48
00:02:21,020 --> 00:02:24,030
Just some stuff going on
that we need to talk about.
49
00:02:24,050 --> 00:02:26,180
And it's pretty urgent.
50
00:02:26,199 --> 00:02:30,179
We have to radically reduce
our expense base,
51
00:02:30,199 --> 00:02:32,009
which might mean layoffs.
52
00:02:32,030 --> 00:02:33,070
It might mean furloughs.
53
00:02:33,090 --> 00:02:34,090
It might mean
salary reductions.
54
00:02:34,110 --> 00:02:37,070
I'll be right out.
55
00:02:37,090 --> 00:02:41,010
So my wife and I had to have
that conversation.
56
00:02:41,030 --> 00:02:42,090
- It's pretty quiet.
57
00:02:42,110 --> 00:02:43,200
- There's no one here,
just us.
58
00:02:43,219 --> 00:02:48,039
- You like this?
- I do like this.
59
00:02:48,060 --> 00:02:49,160
So what's up?
60
00:02:49,180 --> 00:02:52,050
- I talked to Mark, and with,
you know,
61
00:02:52,069 --> 00:02:53,119
the funding getting pulled.
62
00:02:53,139 --> 00:02:55,119
- So they're pulling out
completely?
63
00:02:55,139 --> 00:02:57,159
- Yep they're not putting in
another penny.
64
00:02:57,180 --> 00:02:59,090
- Okay.
65
00:02:59,110 --> 00:03:00,100
- We talked.
66
00:03:00,120 --> 00:03:04,220
Everybody is in full alignment
67
00:03:05,000 --> 00:03:10,020
that our best way to proceed
from here is if Mark,
68
00:03:10,039 --> 00:03:13,179
Lev, and I take over
69
00:03:13,199 --> 00:03:17,049
and fund the business
from here going forward.
70
00:03:17,069 --> 00:03:21,009
[edge music]
71
00:03:21,030 --> 00:03:22,140
- Got it.
72
00:03:22,159 --> 00:03:25,159
- So that means we're gonna
have to be putting capital
73
00:03:25,180 --> 00:03:29,070
into Municipal
to keep it going.
74
00:03:29,090 --> 00:03:32,110
- So us, Mark, and Lev.
- Right.
75
00:03:32,129 --> 00:03:34,139
- A third, a third, a third?
76
00:03:34,159 --> 00:03:36,159
- Right.
- Hmm.
77
00:03:36,180 --> 00:03:38,150
- Obviously, they're in,
you know,
78
00:03:38,170 --> 00:03:41,180
slightly different
financial position than we are.
79
00:03:41,199 --> 00:03:43,999
And they recognize that,
of course.
80
00:03:44,020 --> 00:03:45,210
- Yeah.
81
00:03:45,229 --> 00:03:48,099
So wait, but how much
are we talking about?
82
00:03:48,120 --> 00:03:52,150
- I'm not even sure
what the feasibility is,
83
00:03:52,170 --> 00:03:53,230
but we should look at that.
84
00:03:54,009 --> 00:03:56,209
Like, what is our--
what is our max?
85
00:03:56,229 --> 00:04:00,059
- So we might be putting
86
00:04:00,080 --> 00:04:04,070
everything we can liquidate
into this business.
87
00:04:04,090 --> 00:04:06,030
- I don't have that kind
of cash lying around.
88
00:04:06,050 --> 00:04:08,100
So for us in particular,
we'd have to cash in
89
00:04:08,120 --> 00:04:11,120
a lot of things that we were
saving for retirement
90
00:04:11,139 --> 00:04:15,039
and take on second mortgages
and do some things
91
00:04:15,060 --> 00:04:17,030
that we never thought
we would be doing.
92
00:04:17,050 --> 00:04:19,160
- Mm.
93
00:04:19,180 --> 00:04:21,080
- I'm not fearless.
94
00:04:21,100 --> 00:04:23,120
I mean, who knows what's gonna
happen with this pandemic?
95
00:04:23,139 --> 00:04:25,019
But people are really gonna
love this brand
96
00:04:25,040 --> 00:04:26,160
if we get the opportunity
to launch it.
97
00:04:26,180 --> 00:04:28,230
- So and when do you think
you'll launch now?
98
00:04:29,009 --> 00:04:32,089
- Could be June, could be July,
could be August.
99
00:04:32,110 --> 00:04:36,210
This is the riskiest thing
that I've ever done.
100
00:04:36,230 --> 00:04:39,150
My relationship with my family
and my wife
101
00:04:39,170 --> 00:04:41,160
are now counting on
102
00:04:41,180 --> 00:04:43,140
the success of Municipal.
103
00:04:43,159 --> 00:04:50,069
♪ ♪
104
00:04:50,090 --> 00:04:53,090
[light funky music]
105
00:04:53,110 --> 00:05:00,150
♪ ♪
106
00:05:04,230 --> 00:05:07,180
At one point I thought about
bringing this company Apex
107
00:05:07,199 --> 00:05:10,149
to help the business,
and they wanted
108
00:05:10,170 --> 00:05:12,210
to take over
the entire business,
109
00:05:12,230 --> 00:05:14,160
including
Wahlburgers Corporate,
110
00:05:14,180 --> 00:05:16,010
and we just said no.
111
00:05:16,029 --> 00:05:18,109
And we were able to find
John Fuller.
112
00:05:18,129 --> 00:05:21,229
- Have your kids ever seen
"Boogie Nights"?
113
00:05:22,009 --> 00:05:25,119
- [breathing heavily]
114
00:05:25,139 --> 00:05:27,089
- No.
115
00:05:28,160 --> 00:05:30,230
[laughter]
116
00:05:33,189 --> 00:05:37,159
- I first got my chance to be
a CEO in January of 2010,
117
00:05:37,180 --> 00:05:40,100
then went on to Coffee Bean
and was their president-CEO
118
00:05:40,120 --> 00:05:43,070
for the last 4 1/2 years,
and after I did my research,
119
00:05:43,090 --> 00:05:45,210
I was blown away by what
a business mogul Mark
120
00:05:45,230 --> 00:05:49,030
has become way above and
beyond being a movie actor.
121
00:05:49,050 --> 00:05:51,110
For the stores, you got to
make
those more profitable.
122
00:05:51,129 --> 00:05:53,059
The only one that fits
the model right now
123
00:05:53,079 --> 00:05:54,189
is Myrtle Beach.
- Myrtle Beach, yeah.
124
00:05:54,209 --> 00:05:56,199
- Yeah, and everything else
is,
like, danger zone.
125
00:05:56,220 --> 00:05:58,030
- Yep.
126
00:05:58,050 --> 00:05:59,220
- And then just on
menu optimization,
127
00:06:00,000 --> 00:06:01,200
the best way to improve
your economics is your menu.
128
00:06:01,220 --> 00:06:03,150
- Yep, no,
here are many things
129
00:06:03,170 --> 00:06:05,060
that are not the high margins,
right...
130
00:06:05,079 --> 00:06:06,179
- Yeah.
- That literally have
131
00:06:06,199 --> 00:06:08,059
little to no tails.
- Okay.
132
00:06:08,079 --> 00:06:09,179
- And Paul is like--
- Well, there you go,
133
00:06:09,199 --> 00:06:11,189
low transactions, low margins.
- Yeah.
134
00:06:11,209 --> 00:06:13,169
- They're dogs, and then you
take them off the menu.
135
00:06:13,189 --> 00:06:16,079
- John Fuller understood
all the problems
136
00:06:16,100 --> 00:06:18,060
and challenges
that the business faced
137
00:06:18,079 --> 00:06:20,059
but also saw the potential.
138
00:06:22,089 --> 00:06:24,189
- Corporate needs to lead
and give them a playbook.
139
00:06:24,209 --> 00:06:26,209
They'll be falling over
themselves to build more
140
00:06:26,230 --> 00:06:28,020
if you give them a model
141
00:06:28,040 --> 00:06:30,070
that they can
print money with.
142
00:06:32,189 --> 00:06:34,069
- Whatever you spend,
you should get back
143
00:06:34,090 --> 00:06:35,190
in four years from
the cash flow of the store.
144
00:06:35,209 --> 00:06:37,229
- I like these guys
in the front of me.
145
00:06:38,009 --> 00:06:39,109
- [laughs]
146
00:06:39,129 --> 00:06:42,189
- Hire people thoughtfully
into your organization,
147
00:06:42,209 --> 00:06:44,059
'cause as an entrepreneur,
148
00:06:44,079 --> 00:06:46,049
you're not gonna get
a lot of time
149
00:06:46,069 --> 00:06:48,069
to build
every single person up,
150
00:06:48,090 --> 00:06:50,160
but if you hire
the right people
151
00:06:50,180 --> 00:06:52,140
and then you build them up,
152
00:06:52,159 --> 00:06:56,009
it becomes exponential
through your organization.
153
00:07:02,019 --> 00:07:04,999
Everybody was really excited
once we hired John Fuller
154
00:07:05,019 --> 00:07:06,199
to help my brother Paul.
155
00:07:06,220 --> 00:07:09,050
Finding people
who have proven themselves
156
00:07:09,069 --> 00:07:10,209
in that business
and in that world
157
00:07:10,230 --> 00:07:12,130
is very difficult.
158
00:07:12,149 --> 00:07:14,999
- This was a unique
hiring story for myself,
159
00:07:15,019 --> 00:07:17,019
from the time Mark
kind of expressed interest
160
00:07:17,040 --> 00:07:19,090
to the time I was hired,
it happened really quick,
161
00:07:19,110 --> 00:07:20,230
and it was a whirlwind.
162
00:07:21,009 --> 00:07:25,029
[airplane engine whirring]
163
00:07:25,050 --> 00:07:28,040
[light electronic music]
164
00:07:28,060 --> 00:07:35,090
♪ ♪
165
00:07:36,120 --> 00:07:38,110
- Starting to feel
a little normal again.
166
00:07:38,129 --> 00:07:39,199
- It's amazing, right?
167
00:07:39,220 --> 00:07:41,090
Freshened up the space.
168
00:07:41,110 --> 00:07:42,210
Look at this,
new coat of paint.
169
00:07:42,230 --> 00:07:44,170
All the flooring's
brand-new here,
170
00:07:44,189 --> 00:07:46,029
deep-cleaned all that,
171
00:07:46,050 --> 00:07:49,000
so...good stuff.
172
00:07:49,019 --> 00:07:50,129
- Oh, I miss it so much.
173
00:07:50,149 --> 00:07:52,039
Like I said, we've been
quarantining together,
174
00:07:52,060 --> 00:07:53,190
so we've been
working out together,
175
00:07:53,209 --> 00:07:55,219
but to be able to be
back in the studio
176
00:07:56,000 --> 00:07:57,170
with the whole F45 community,
177
00:07:57,189 --> 00:07:59,049
all the people we started
getting close to
178
00:07:59,069 --> 00:08:00,139
I haven't seen in months,
179
00:08:00,160 --> 00:08:04,000
I mean, we're back, baby.
180
00:08:04,019 --> 00:08:05,179
Come on, cowgirl.
Let me get a yee-haw.
181
00:08:05,199 --> 00:08:07,999
- Yee-haw.
- No bull--give me one.
182
00:08:08,019 --> 00:08:09,109
Yee-haw.
183
00:08:09,129 --> 00:08:11,119
Time to get it in.
Ace, you ready?
184
00:08:11,139 --> 00:08:13,009
- ♪ I'm all out ♪
185
00:08:13,029 --> 00:08:14,109
- ♪ No holds barred,
I go so hard ♪
186
00:08:14,129 --> 00:08:15,209
♪ Till I break things apart ♪
187
00:08:15,230 --> 00:08:17,150
♪ Leave blown-up shards ♪
188
00:08:17,170 --> 00:08:19,030
- ♪ I'm all out ♪
- ♪ To get mine ♪
189
00:08:19,050 --> 00:08:20,170
♪ So upcharged,
energized ♪
190
00:08:20,189 --> 00:08:23,019
♪ A small dream,
need it blown up large ♪
191
00:08:23,040 --> 00:08:24,110
- ♪ I'm all out ♪
192
00:08:24,129 --> 00:08:26,069
- I'm very proud of you.
193
00:08:26,089 --> 00:08:29,049
So since she started her
hobby horse business,
194
00:08:29,069 --> 00:08:32,199
she got an order of 10 horses
195
00:08:32,220 --> 00:08:34,190
for $100 apiece,
196
00:08:34,210 --> 00:08:37,140
and she delivered them all
in a day and a half.
197
00:08:37,159 --> 00:08:39,059
When we first came in,
198
00:08:39,080 --> 00:08:40,220
my wife was having
a very hard time
199
00:08:41,000 --> 00:08:43,220
having to modify everything,
and now she came in today
200
00:08:44,000 --> 00:08:47,100
first time back after months
of working out together at home.
201
00:08:47,120 --> 00:08:49,150
I mean, she has grown so far.
202
00:08:49,169 --> 00:08:52,089
Babe...
203
00:08:54,120 --> 00:08:55,220
- So easy, right?
204
00:08:56,000 --> 00:08:57,110
- Compared to what
we've been doing.
205
00:08:57,129 --> 00:08:59,029
Remember how hard...
206
00:08:59,049 --> 00:09:00,209
- I know, but remember how hard
it used to be
207
00:09:00,230 --> 00:09:02,030
when you could come in?
208
00:09:02,049 --> 00:09:04,009
- You see how far you've come?
209
00:09:04,029 --> 00:09:05,209
[[indistinct chatter]
210
00:09:05,230 --> 00:09:07,190
Gug-gug-gug-gug-gug-gug.
211
00:09:07,210 --> 00:09:09,160
Yeah.
[laughs]
212
00:09:11,110 --> 00:09:14,090
[somber music]
213
00:09:14,110 --> 00:09:20,080
♪ ♪
214
00:09:20,100 --> 00:09:23,090
[music intensifies]
215
00:09:23,110 --> 00:09:30,120
♪ ♪
216
00:09:31,000 --> 00:09:35,070
- I think we brought
about 20 things
217
00:09:35,090 --> 00:09:37,100
just 'cause we wanted
to make sure we had a variety.
218
00:09:37,120 --> 00:09:38,220
The first production run
219
00:09:39,000 --> 00:09:41,050
are the way things will look
220
00:09:41,070 --> 00:09:43,010
as produced to the consumer.
221
00:09:43,029 --> 00:09:44,199
Up until this point,
222
00:09:44,220 --> 00:09:47,150
anything that Mark and Lev
have seen
223
00:09:47,169 --> 00:09:49,049
have been prototypes.
224
00:09:49,070 --> 00:09:51,090
Did you see all these?
225
00:09:51,110 --> 00:09:53,110
- These are our launch colors,
all that.
226
00:09:53,129 --> 00:09:56,069
You gonna wear the lava one?
227
00:09:56,090 --> 00:09:57,200
No?
228
00:09:57,220 --> 00:10:00,140
With Lev, I never know,
like, do you hate the concept?
229
00:10:00,159 --> 00:10:02,049
Lev, feel these.
230
00:10:02,070 --> 00:10:03,160
Sport utility gear.
231
00:10:03,179 --> 00:10:07,149
Didn't exist before, Lev,
until you invented it.
232
00:10:07,169 --> 00:10:10,079
- How about these?
233
00:10:11,149 --> 00:10:13,079
- Lev is the world's
toughest critic.
234
00:10:13,100 --> 00:10:15,060
You want me to try to find
something for you?
235
00:10:15,080 --> 00:10:16,170
- Yes.
- Okay.
236
00:10:16,190 --> 00:10:18,080
- Ultimately,
at the end of the day,
237
00:10:18,100 --> 00:10:19,220
if Mark smiles and gives us
the thumbs up,
238
00:10:20,000 --> 00:10:21,080
we know that we've got
something good.
239
00:10:21,100 --> 00:10:24,020
This is a Goatee.
That's the stretchy one.
240
00:10:24,039 --> 00:10:26,079
I think the Ts are good.
241
00:10:26,100 --> 00:10:28,100
This is more workout
the more you move down here.
242
00:10:28,120 --> 00:10:29,180
- This is all Levi shit.
243
00:10:29,200 --> 00:10:31,210
This ain't me.
This is Levi stuff.
244
00:10:31,230 --> 00:10:34,010
- It's not my shit.
- This is all Levi.
245
00:10:34,029 --> 00:10:36,169
- So he nixed
all of your product.
246
00:10:36,190 --> 00:10:38,060
In one fell swoop.
- It's our product.
247
00:10:38,080 --> 00:10:39,170
It's our product.
- And tried to pin it on me.
248
00:10:39,190 --> 00:10:41,010
And I don't like it either,
Harry.
249
00:10:41,029 --> 00:10:43,049
- He's more talking about
the style.
250
00:10:43,070 --> 00:10:47,120
It's, like, he doesn't like
the shirt you have on,
251
00:10:47,139 --> 00:10:50,089
which we all think
is really cool.
252
00:10:52,110 --> 00:10:55,170
We have to make something that
not only is Mark gonna love,
253
00:10:55,190 --> 00:10:58,010
who wants something to be
really close-fitting
254
00:10:58,029 --> 00:10:59,219
and not a lot
of excess fabric,
255
00:11:00,000 --> 00:11:01,120
to something Lev's gonna love,
256
00:11:01,139 --> 00:11:05,019
who wants just extreme comfort
all the time.
257
00:11:05,039 --> 00:11:06,089
Too tight?
- Yeah.
258
00:11:06,110 --> 00:11:07,210
Give me a pair of
scissors.
259
00:11:08,000 --> 00:11:09,070
- Putting those two things
together
260
00:11:09,090 --> 00:11:11,010
we think is really unique.
261
00:11:11,029 --> 00:11:13,039
We're gonna--hey.
262
00:11:13,059 --> 00:11:14,159
Look in here.
- Huh?
263
00:11:14,179 --> 00:11:16,159
- We're gonna get a shirt
you're gonna love, okay?
264
00:11:16,179 --> 00:11:17,999
- Okay.
265
00:11:18,019 --> 00:11:19,059
- Don't worry. Don't worry.
- No problem.
266
00:11:19,080 --> 00:11:20,180
- We're all equal partners.
267
00:11:20,200 --> 00:11:23,060
So if Mark and Lev
want changes,
268
00:11:23,080 --> 00:11:24,160
we're gonna make changes.
269
00:11:24,179 --> 00:11:25,199
- It's okay. It's okay.
270
00:11:25,220 --> 00:11:27,060
- We got it.
- It's okay.
271
00:11:27,080 --> 00:11:29,130
- Pre-pandemic,
I felt pretty confident
272
00:11:29,149 --> 00:11:31,069
we could have a
million-dollar month at launch,
273
00:11:31,090 --> 00:11:34,170
and now I'd be happy
if we had
274
00:11:34,190 --> 00:11:36,180
a $130,000 month.
275
00:11:36,200 --> 00:11:38,180
I'm totally confident.
276
00:11:40,100 --> 00:11:43,090
[light electronic music]
277
00:11:43,110 --> 00:11:45,110
♪ ♪
278
00:11:45,129 --> 00:11:46,229
[indistinct under music]
279
00:11:47,009 --> 00:11:54,059
♪ ♪
280
00:12:00,179 --> 00:12:02,109
- Mark, how you been,
my friend?
281
00:12:02,129 --> 00:12:04,029
- Blessed.
282
00:12:04,049 --> 00:12:06,079
Father Emmanuel,
we're doing a doc with him,
283
00:12:06,100 --> 00:12:08,110
so we started talking
about stuff.
284
00:12:08,129 --> 00:12:11,149
Now we talk all the time.
He's been helpful to me.
285
00:12:11,169 --> 00:12:13,069
Let me ask you
a quick question.
286
00:12:13,090 --> 00:12:15,040
I'm very interested
in business but obviously
287
00:12:15,059 --> 00:12:17,069
still kind of in my infancy
288
00:12:17,090 --> 00:12:20,030
when it comes to having
real experience in investments.
289
00:12:20,049 --> 00:12:21,149
Obviously, we're focusing
on opportunities
290
00:12:21,169 --> 00:12:23,079
and the things that
I might want to
291
00:12:23,100 --> 00:12:24,200
invest in in the future.
292
00:12:24,220 --> 00:12:26,070
- What I was telling you, Mark,
you've got to get
293
00:12:26,090 --> 00:12:28,090
enough knowledge
to have a clear framework.
294
00:12:28,110 --> 00:12:30,030
I sent him a reading list
of books.
295
00:12:30,049 --> 00:12:32,079
You know, if you showed
ten people that reading list,
296
00:12:32,100 --> 00:12:34,150
nine would say thanks
and never read it.
297
00:12:34,169 --> 00:12:35,999
Mark read it.
He ordered the books.
298
00:12:36,019 --> 00:12:37,129
He had them the next day.
299
00:12:37,149 --> 00:12:38,229
- Wanted a 5% profit...
300
00:12:39,009 --> 00:12:40,119
- Wanted to educate
myself more,
301
00:12:40,139 --> 00:12:42,049
so I've been taking
a lot of time
302
00:12:42,070 --> 00:12:44,020
to really read and just become
more informed,
303
00:12:44,039 --> 00:12:45,229
you know,
so I always felt like
304
00:12:46,009 --> 00:12:47,109
if I want to go and earn money,
305
00:12:47,129 --> 00:12:48,999
I had to go out there and work
hard for it,
306
00:12:49,019 --> 00:12:50,129
you know,
the old-fashioned way.
307
00:12:50,149 --> 00:12:52,019
- You know, Mark, I don't think
it's incompatible
308
00:12:52,039 --> 00:12:53,119
working with a company.
309
00:12:53,139 --> 00:12:55,029
It doesn't have to be
a private company.
310
00:12:55,049 --> 00:12:57,119
All I'm saying is it has to be
a good company.
311
00:12:57,139 --> 00:12:59,059
- Certainly
the stock market was
312
00:12:59,080 --> 00:13:03,140
never something that I was
so quick to just dive into.
313
00:13:03,159 --> 00:13:06,109
So Father, the thing that
I'm most excited about
314
00:13:06,129 --> 00:13:08,069
is Green Zebra.
315
00:13:08,090 --> 00:13:11,070
- I'm not an expert on
the convenience store model.
316
00:13:11,090 --> 00:13:13,140
- We're more interested in just
period, point blank
317
00:13:13,159 --> 00:13:15,059
what you think
about the business.
318
00:13:15,080 --> 00:13:16,170
- All right.
- Yeah.
319
00:13:16,190 --> 00:13:18,120
We'd love to get
your thoughts on this, Father.
320
00:13:18,139 --> 00:13:21,099
- Yeah, if you find it helpful,
I'm always happy to help.
321
00:13:21,120 --> 00:13:23,000
[chuckles]
- All rightie.
322
00:13:23,019 --> 00:13:25,099
- All right. Take care, guys.
- Thanks, guys.
323
00:13:25,120 --> 00:13:28,110
[light funky music]
324
00:13:28,129 --> 00:13:35,169
♪ ♪
325
00:13:42,059 --> 00:13:45,089
So, Lisa, we wanted
to give Frank especially
326
00:13:45,110 --> 00:13:47,180
a chance to talk with you.
327
00:13:47,200 --> 00:13:50,130
- I've heard so many
good things about you.
328
00:13:50,149 --> 00:13:51,189
- Oh, that's nice to hear.
329
00:13:51,210 --> 00:13:54,000
- So Green Zebra.
330
00:13:54,019 --> 00:13:56,229
My concern was making sure
that she had enough money
331
00:13:57,009 --> 00:13:58,179
to go and open the amount of
stores that she wanted to open
332
00:13:58,200 --> 00:14:00,220
and then continue to grow
the business.
333
00:14:01,000 --> 00:14:03,030
You know, we didn't want to be
in a situation
334
00:14:03,049 --> 00:14:04,209
where she didn't raise
enough capital
335
00:14:04,230 --> 00:14:06,210
to kind of get to the store
number that she needed to.
336
00:14:06,230 --> 00:14:08,210
Ultimately, you know, in,
like, three or four years,
337
00:14:08,230 --> 00:14:12,080
I would love to see her with,
you know, 50 to 100 stores.
338
00:14:12,100 --> 00:14:13,110
It's not impossible.
339
00:14:13,129 --> 00:14:15,149
- Let me ask you some questions
340
00:14:15,169 --> 00:14:18,099
just for my own edification.
341
00:14:18,120 --> 00:14:20,120
You know, what concerns me is,
like,
342
00:14:20,139 --> 00:14:23,079
do you think you're gonna have
a problem getting product,
343
00:14:23,100 --> 00:14:25,130
I mean,
food and product and stuff?
344
00:14:25,149 --> 00:14:27,109
- Not really.
There's a few things
345
00:14:27,129 --> 00:14:28,999
that we haven't been able
to get
346
00:14:29,019 --> 00:14:31,059
from our primary
supplier, so...
347
00:14:31,080 --> 00:14:32,140
all throughout COVID,
348
00:14:32,159 --> 00:14:34,059
so many businesses
have cratered,
349
00:14:34,080 --> 00:14:38,160
and that's super sad,
and we haven't.
350
00:14:38,179 --> 00:14:40,999
The second you take a dollar
from someone else,
351
00:14:41,019 --> 00:14:42,069
that's a huge responsibility,
352
00:14:42,090 --> 00:14:44,070
and so investors are, like,
353
00:14:44,090 --> 00:14:46,020
wanting to vet it all,
you know.
354
00:14:46,039 --> 00:14:48,109
- How many stores do you think
you'll do in the next year?
355
00:14:48,129 --> 00:14:50,009
- I think if we really crank,
356
00:14:50,029 --> 00:14:53,089
we can get up to 10 stores open
in 18 months.
357
00:14:53,110 --> 00:14:55,150
- Do you think you have
enough money to do this?
358
00:14:55,169 --> 00:14:58,029
- I think we could raise
more money, frankly.
359
00:14:58,049 --> 00:14:59,999
Frankly.
Ha-ha-ha.
360
00:15:00,019 --> 00:15:01,159
- Frank,
just take your checkbook out
361
00:15:01,179 --> 00:15:03,139
and solve the problem.
362
00:15:03,159 --> 00:15:06,039
- It got quiet fast.
- [laughs]
363
00:15:06,059 --> 00:15:08,149
- Well, I think you've
answered all my questions.
364
00:15:08,169 --> 00:15:10,029
- Tom, are you already in?
365
00:15:10,049 --> 00:15:11,169
- I'm still wrestling with it,
to be honest.
366
00:15:11,190 --> 00:15:14,190
My cost of capital
has changed dramatically,
367
00:15:14,210 --> 00:15:16,120
so we're gonna see how things
roll out, so...
368
00:15:16,139 --> 00:15:19,999
- In every investor meeting
that you have,
369
00:15:20,019 --> 00:15:23,009
sometimes you think,
"They're really into my deal,"
370
00:15:23,029 --> 00:15:25,129
and you're never really sure
at the end
371
00:15:25,149 --> 00:15:26,999
if they're gonna write
the check,
372
00:15:27,019 --> 00:15:28,199
and so I never know
when I have them
373
00:15:28,220 --> 00:15:32,070
and when I don't have them,
but also, I have hope.
374
00:15:32,090 --> 00:15:33,120
- Thank you very much
for your time.
375
00:15:33,139 --> 00:15:34,209
I really appreciate it.
376
00:15:34,230 --> 00:15:39,100
- Thank you, Lisa.
I'll call y'all later.
377
00:15:39,120 --> 00:15:42,120
- Am I the last one in?
378
00:15:42,139 --> 00:15:45,129
[punchy music]
379
00:15:45,149 --> 00:15:49,169
♪ ♪
380
00:15:51,169 --> 00:15:54,119
- Okay.
381
00:15:54,139 --> 00:16:00,229
♪ ♪
382
00:16:01,009 --> 00:16:02,129
How are you?
- Good. How are you, man?
383
00:16:02,149 --> 00:16:04,049
- Sit down, guys. Sit down.
384
00:16:04,070 --> 00:16:06,170
- Oscar De La Hoya is friends
with Mario Lopez.
385
00:16:06,190 --> 00:16:08,210
Mario Lopez is friends
with Mark Wahlberg.
386
00:16:08,230 --> 00:16:11,210
So those guys came to Mark
and said, "Hey,
387
00:16:11,230 --> 00:16:15,120
let's do a documentary film
about Oscar's life."
388
00:16:15,139 --> 00:16:16,189
- Archie, you cool?
389
00:16:16,210 --> 00:16:18,010
- I'm cool.
How are you guys doing?
390
00:16:18,029 --> 00:16:19,169
- I didn't want to wake
the baby.
391
00:16:19,190 --> 00:16:21,050
- No. Great to meet you, Oscar.
392
00:16:21,070 --> 00:16:22,200
- Glad we finally
all got together, you know.
393
00:16:22,220 --> 00:16:24,130
We're all fired up.
- Yeah.
394
00:16:24,149 --> 00:16:26,069
I've always called Oscar, like,
395
00:16:26,090 --> 00:16:27,210
our Latino Muhammad Ali.
396
00:16:27,230 --> 00:16:29,170
There's still so much buzz
397
00:16:29,190 --> 00:16:31,120
outside of
the Latino community too.
398
00:16:31,139 --> 00:16:33,079
It's, like, you know,
he transcends.
399
00:16:33,100 --> 00:16:36,050
- Look, Mark is the ultimate
salesman for our company.
400
00:16:36,070 --> 00:16:38,030
He's been one of the top actors
and producers
401
00:16:38,049 --> 00:16:39,089
in the entire
entertainment industry
402
00:16:39,110 --> 00:16:41,030
for the past few decades.
403
00:16:41,049 --> 00:16:44,119
He's cultivated tons
of relationships with people,
404
00:16:44,139 --> 00:16:47,229
and those people come to him
with potential projects
405
00:16:48,009 --> 00:16:50,039
that we can develop
and produce.
406
00:16:50,059 --> 00:16:52,119
- There's so many stories
that we have, you know...
407
00:16:52,139 --> 00:16:54,059
- Oh, yeah.
- That can make it real.
408
00:16:54,080 --> 00:16:55,220
I'm an open book.
409
00:16:56,000 --> 00:16:58,220
I'm not even afraid to tap into
the controversies, you know.
410
00:16:59,000 --> 00:17:01,170
There's a lot of great events
411
00:17:01,190 --> 00:17:04,090
that have taken place
that nobody knows of,
412
00:17:04,109 --> 00:17:06,029
but I just want
to make sure that, you know,
413
00:17:06,049 --> 00:17:07,179
we tell the right story.
414
00:17:07,200 --> 00:17:10,230
- But I think the more access
we have
415
00:17:11,009 --> 00:17:12,169
the more compelling
it's gonna be.
416
00:17:12,190 --> 00:17:16,010
- In a pandemic, there's no
one way to be a leader.
417
00:17:16,029 --> 00:17:17,219
- You have to think about
what to do immediately.
418
00:17:18,000 --> 00:17:20,210
You got to stop
and take inventory.
419
00:17:20,230 --> 00:17:22,120
What is at your fingertips?
420
00:17:22,140 --> 00:17:25,050
Is that time on hand?
Is that cash on hand?
421
00:17:25,069 --> 00:17:26,189
Is that an amazing staff?
422
00:17:26,210 --> 00:17:29,040
Is it the fact
that your Rolodex right now
423
00:17:29,059 --> 00:17:30,149
is what you need to tap into?
424
00:17:30,170 --> 00:17:32,030
That's your inventory,
your friends.
425
00:17:32,049 --> 00:17:34,159
- I was able
to walk through fire,
426
00:17:34,180 --> 00:17:37,110
and here I am now
still going.
427
00:17:37,130 --> 00:17:38,190
- Mark's sitting right there.
428
00:17:38,210 --> 00:17:41,000
That's, you know,
that's his story, man.
429
00:17:41,019 --> 00:17:43,139
People grow,
and they become huge successes
430
00:17:43,160 --> 00:17:45,010
because they learn
from their mistakes.
431
00:17:45,029 --> 00:17:46,229
You saying
that you're an open book
432
00:17:47,009 --> 00:17:48,129
brings joy to me
433
00:17:48,150 --> 00:17:51,140
because this is not going to be
a boxing documentary.
434
00:17:55,210 --> 00:17:58,100
- Exactly. It's about a man.
Right.
435
00:17:58,119 --> 00:17:59,189
- That's what I wanted to hear.
436
00:17:59,210 --> 00:18:01,220
I--I want something
437
00:18:02,000 --> 00:18:04,070
that my kids can be proud of
438
00:18:04,089 --> 00:18:06,039
and say, you know,
"That's my dad."
439
00:18:06,059 --> 00:18:08,069
- We'll do something
that you'll be really proud of.
440
00:18:08,089 --> 00:18:10,079
- Yeah.
- Like Mark said, let's go.
441
00:18:10,099 --> 00:18:11,199
- All right.
- Beautiful.
442
00:18:11,220 --> 00:18:14,210
[funky electronic music]
443
00:18:14,230 --> 00:18:22,030
♪ ♪
444
00:18:30,099 --> 00:18:32,059
[dog barks, growls]
445
00:18:32,079 --> 00:18:36,039
- Which one is better,
this one or this one?
446
00:18:36,059 --> 00:18:37,199
- Oh, I like that color.
447
00:18:37,220 --> 00:18:39,160
- I'm still not sure
about Harry's taste.
448
00:18:39,180 --> 00:18:41,130
I mean, it's a little bit
of a scary thought
449
00:18:41,150 --> 00:18:43,160
considering he's running
the fucking company.
450
00:18:43,180 --> 00:18:45,060
What do we say?
451
00:18:45,079 --> 00:18:47,029
- Every moment now with Mark
and Lev is like
452
00:18:47,049 --> 00:18:48,079
a dress rehearsal.
453
00:18:48,099 --> 00:18:49,999
That has a Modal liner.
454
00:18:50,019 --> 00:18:52,129
Because stakes are pretty high
for us to hit
455
00:18:52,150 --> 00:18:55,000
the key gates that we want
to hit for this launch.
456
00:18:55,019 --> 00:18:56,149
- Do you ever feel this?
- No.
457
00:18:56,170 --> 00:18:58,040
- This is our blend.
458
00:18:58,059 --> 00:19:00,039
- Yo, this is nice,
exactly what I dreamed about.
459
00:19:00,059 --> 00:19:01,159
- Yeah. The fabric is awesome.
460
00:19:01,180 --> 00:19:03,220
It almost feels like
everything's a big reveal.
461
00:19:04,000 --> 00:19:06,020
I brought more Ts.
462
00:19:06,039 --> 00:19:07,149
This is that polo I showed you.
463
00:19:07,170 --> 00:19:09,010
We'll get the intensity up
today.
464
00:19:09,029 --> 00:19:10,999
- How is it with,
like, moisture, sweat?
465
00:19:11,019 --> 00:19:12,009
- Yeah. It's good.
466
00:19:12,029 --> 00:19:13,229
If Mark and Lev like it...
467
00:19:14,009 --> 00:19:15,209
- Oh, it feels nice
on the head, no tab.
468
00:19:15,230 --> 00:19:17,230
- And there are only small
tweaks, then we're good to go.
469
00:19:18,009 --> 00:19:20,029
- Tighter. Elastic.
- Oh, okay.
470
00:19:20,049 --> 00:19:22,069
If Mark and Lev
don't care for it,
471
00:19:22,089 --> 00:19:23,999
the launch
will be compromised,
472
00:19:24,019 --> 00:19:25,169
and there's really not
a lot we can do
473
00:19:25,190 --> 00:19:28,070
other than scrap it and go back
to the drawing board.
474
00:19:29,160 --> 00:19:31,160
- Yo, it is comfortable.
- Isn't it?
475
00:19:31,180 --> 00:19:33,200
- That's the most comfortable
hat I've ever put on.
476
00:19:33,220 --> 00:19:35,060
- It's ridiculous.
477
00:19:36,200 --> 00:19:39,100
- Oh, this feels good.
- Ohh.
478
00:19:39,119 --> 00:19:41,009
- That feels good, baby.
479
00:19:41,029 --> 00:19:47,189
♪ Hallelujah ♪
480
00:19:48,220 --> 00:19:49,200
Damn.
481
00:19:49,220 --> 00:19:52,040
- That's a green light.
482
00:19:52,059 --> 00:19:54,029
We're ready to launch.
483
00:19:54,049 --> 00:19:57,039
[light electronic music]
484
00:19:57,059 --> 00:20:04,079
♪ ♪
485
00:20:05,049 --> 00:20:06,129
- Are you okay if we start
with a prayer?
486
00:20:06,150 --> 00:20:08,010
- Of course. Always.
- Sure.
487
00:20:08,029 --> 00:20:09,139
- Okay, in the name
of the Father and the Son
488
00:20:09,160 --> 00:20:11,030
and the Holy Spirit.
489
00:20:11,049 --> 00:20:12,189
Lord Jesus Christ, Son
of the Living God, we ask,
490
00:20:12,210 --> 00:20:14,190
pray, and intreat
that you will bless all those
491
00:20:14,210 --> 00:20:18,110
involved
in the Green Zebra endeavor.
492
00:20:18,130 --> 00:20:20,030
We ask that you enlighten
our minds
493
00:20:20,049 --> 00:20:21,229
with the light
of your knowledge and wisdom,
494
00:20:22,009 --> 00:20:24,189
for you are Holy, always known
forever to the ages of ages.
495
00:20:24,210 --> 00:20:25,200
Amen.
496
00:20:25,220 --> 00:20:27,120
- Amen.
- Yeah.
497
00:20:27,140 --> 00:20:28,230
That's a first for me.
498
00:20:29,009 --> 00:20:31,019
- Ryan, can you remind me
of your role, Ryan?
499
00:20:31,039 --> 00:20:33,069
- Sure.
Mark and I over the past year
500
00:20:33,089 --> 00:20:37,159
have chosen to partner
on a number of different deals,
501
00:20:37,180 --> 00:20:39,220
Green Zebra being one of them.
502
00:20:40,000 --> 00:20:41,160
- I only spent about 25 minutes
on this.
503
00:20:41,180 --> 00:20:43,120
Normally when analyzing
a company,
504
00:20:43,140 --> 00:20:45,020
I would probably spend
a couple hours, I mean,
505
00:20:45,039 --> 00:20:47,029
and honestly, I spend a couple
of weeks on some,
506
00:20:47,049 --> 00:20:48,189
some months and even years.
507
00:20:48,210 --> 00:20:51,070
While I'm not an expert
in the convenience store sector,
508
00:20:51,089 --> 00:20:54,159
I've studied at least
I'm sure hundreds of companies
509
00:20:54,180 --> 00:20:56,200
over the last decade,
and in that process,
510
00:20:56,220 --> 00:21:00,100
usually what I do is,
I publish my research publicly
511
00:21:00,119 --> 00:21:02,129
so that it's open
for public scrutiny.
512
00:21:02,150 --> 00:21:04,040
- Great. Okay.
513
00:21:04,059 --> 00:21:06,039
- Let me start
with the positive first of all.
514
00:21:06,059 --> 00:21:09,059
I think what Lisa is trying
to build is really admirable,
515
00:21:09,079 --> 00:21:13,039
and I think that the convenience
store model,
516
00:21:13,059 --> 00:21:15,029
I can understand why
people would think
517
00:21:15,049 --> 00:21:16,169
it should be disrupted.
518
00:21:16,190 --> 00:21:18,080
But let me just walk you
through what I see on the deck.
519
00:21:18,099 --> 00:21:20,149
So the deck is--is confusing.
520
00:21:20,170 --> 00:21:22,030
- [clears throat]
Okay.
521
00:21:22,049 --> 00:21:23,119
- But just getting into
some of the things
522
00:21:23,140 --> 00:21:25,040
that jump out at me...
- Mm-hmm.
523
00:21:25,059 --> 00:21:27,009
- So the page that say,
"Who are we, our customers?"
524
00:21:27,029 --> 00:21:29,019
It says, "People who are health
conscious and short on time.
525
00:21:29,039 --> 00:21:31,099
Basically everyone."
526
00:21:31,119 --> 00:21:33,029
I'm not totally convinced
that's everyone.
527
00:21:33,049 --> 00:21:35,189
If we're looking at a country
of 330 million people,
528
00:21:35,210 --> 00:21:37,080
probably a lot of
health-conscious people
529
00:21:37,099 --> 00:21:39,229
in Seattle and Portland and LA,
but I don't know
530
00:21:40,009 --> 00:21:41,169
I'd speak for the rest
of the country so quickly.
531
00:21:41,190 --> 00:21:43,030
- That's fair. Yeah.
- And the other thing
532
00:21:43,049 --> 00:21:44,179
that jumps out at me is,
it says,
533
00:21:44,200 --> 00:21:47,160
"Industry-wide enterprise value
is 10x even on average."
534
00:21:47,180 --> 00:21:49,210
Based on my research,
that's wildly off.
535
00:21:49,230 --> 00:21:52,160
So it says gross profit margins
of 22 to 26.
536
00:21:52,180 --> 00:21:54,110
I happen to know
that's a false number.
537
00:21:54,130 --> 00:21:57,030
She's talking about
an increase of going
538
00:21:57,049 --> 00:22:00,119
from 11 million in gross sales
to 120 million
539
00:22:00,140 --> 00:22:01,130
in five years?
540
00:22:01,150 --> 00:22:02,210
That's a hockey stick.
541
00:22:02,230 --> 00:22:05,000
- Right, and look, it's--the--
542
00:22:05,019 --> 00:22:08,159
- I'm very, very suspect
of hockey stick projections.
543
00:22:08,180 --> 00:22:11,060
I don't like them--I think
they're a huge red flag.
544
00:22:11,079 --> 00:22:13,209
The convenience store risk--
it's very capital intensive.
545
00:22:13,230 --> 00:22:16,020
The interest expense
is 10% of gross margin.
546
00:22:16,039 --> 00:22:17,219
You can have a company
that loses money for a while.
547
00:22:18,000 --> 00:22:19,220
You're gonna have to put a lot
of inputs to increase revenue.
548
00:22:20,000 --> 00:22:21,130
A loss of about 2.1 million.
549
00:22:21,150 --> 00:22:23,210
She's talking about metrics
that I've never heard of.
550
00:22:23,230 --> 00:22:26,080
Looking at the statement
of income, that worries me.
551
00:22:26,099 --> 00:22:28,019
When you're raising capital
from investors,
552
00:22:28,039 --> 00:22:29,999
liquidation preference,
methodologies for valuation,
553
00:22:30,019 --> 00:22:31,199
the more money you put in,
the more you lose.
554
00:22:31,220 --> 00:22:33,140
Then we get down
to the net income line,
555
00:22:33,160 --> 00:22:35,100
very severe recession.
556
00:22:35,119 --> 00:22:37,059
Again, I don't know
when this deck was done,
557
00:22:37,079 --> 00:22:40,039
but as we speak here today,
it is not the time to invest.
558
00:22:40,059 --> 00:22:41,139
[dramatic musical sting]
559
00:22:41,160 --> 00:22:44,030
We are looking at
a very severe recession
560
00:22:44,049 --> 00:22:46,129
and probably a depression,
in my opinion.
561
00:22:46,150 --> 00:22:49,030
And that worries me
as an analyst
562
00:22:49,049 --> 00:22:50,139
who studied hundreds
of companies.
563
00:22:50,160 --> 00:22:53,000
[tense music]
564
00:22:53,019 --> 00:22:56,019
So that's 20 minutes
of analysis, guys.
565
00:22:56,039 --> 00:22:59,039
[funky music]
566
00:22:59,059 --> 00:23:06,099
♪ ♪
42312
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