Rolla Skate Club

Carla Smith and Lucy Croysdill, from Vancouver, BC, asked for $200,000 for 10% of Rolla Skate Club, a roller skating gym combining fitness classes with weekend social events. The business has 750 members at its flagship 20,000-square-foot Vancouver location, charges membership fees of $125 to $200 per month, and also runs public skate nights as a separate revenue stream. In its first full year at the new facility it earned just over $1,000,000 in revenue, about 60% from classes and memberships and 33% from events, but broke even after costs. The company plans to launch a franchise model with a $40,000 franchise fee plus 8% royalty and 2% marketing fee, projecting $1.4 million in revenue for the coming year and valuing the business at $2 million.

Wes Hall went out first, saying breaking even means the company has not proven it can make money and criticizing the plan to sell franchises with none sold yet. Robert Herjavec went out over concerns about the large space required for each location. Michele Romanow said franchisees need proof the founders can make money themselves before selling franchises. Arlene Dickinson felt the 8% royalty would not be enough to properly support franchisees. Manjit Minhas did not make an offer either, and the founders left without a deal.

Rolla Skate Club is still operating and sells through its website.