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 ♪ ♪