Do you not see that . We overhauled their Business Model and their building. But they recently received news. Marcus lemonis with carcash regarding an eviction. That could shut the business down for good. Andrew its not right. Really, its not right. Lemonis in jacksonville, a talented candy maker tied up in a bad deal. Dane i dont want to sell. Lemonis in 18 months, that tiny company has been transformed into a multimilliondollar business. You did 538,000 compared to like 35,000 the year before. Peter thats a big difference. Lemonis but the biggest move. What do you think we would do with this building . Is yet to come. And a familyrun Clothing Company, once crippled by bad designs and bad tempers, got a new look. Man oh, my god. Lemonis . And new clothing lines. Noemie i love it. Lemonis but some very familiar problems still exist. Nicolas you dont change that. We will tell you whether it is feasible to do. Lemonis its another progress report, tonight on the profit. About 15 months ago, i came to jacksonville, florida, to check out a small candy company, sweet petes. Man yeah, thats good. Lemonis the business was being run by allison behringer, but the Creative Force was pete. Peter we mixed our sugar. Who wants to eat this . Lemonis and while they brought in around 400,000 in sales, they were still losing money. Allison the first year, we made 10,000 combined. Lemonis you cant live off 10,000 a year combined. Business was facing all sorts of obstacles. They were making candy in a tiny kitchen with equipment that was substandard. Even worse, they were in a house in a residential neighborhood with no foot traffic. Why did you specifically pick this location . Allison because our partner said, i own this location. Lemonis that partner, dane baird. Dane this is still delicious. Lemonis . Had made a small investment but wasnt willing to invest any more time or money. Peter how do we buy you out . What do you want . Dane so, i dont want to sell. Peter youre just trying to hold us hostage. Thats all it is. Lemonis but it all seemed fixable, so i made a deal. Were sharing 50 50 in the profits. Im 100 in charge. So, we have a deal . My first move was to untangle the toxic partnership, so i bought dane out. Youre essentially not gonna be in charge anymore. Then set a whole new plan in motion. Peter [ laughs ] lemonis since the shop was hard to find. Look away. Wed make sweet petes impossible to miss. Turn around. Peter oh, my god lemonis the more time i spent with pete and allison, the more i believed in their mission. So i doubled down and purchased this historic mansion in Downtown Jacksonville. The renovation was massive. It took over eight months and cost just over 3. 4 million. This place looks ridiculous. The new sweet petes is 22,000 square feet of color, candy, and fun. The kitchen. Whats up, pete . this place looks great. Peter this is kind of like what you see in the movies. Lemonis the kitchen is industrial grade, and its been outfitted with over 300,000 of the best candymaking equipment you can buy. Peter this will hold 450 pounds of dark chocolate, and this is a cooker. Lemonis in the first month after the move, we topped over 100,000 in sales, more than triple what they were doing in their old location. Peter we couldnt have done it without you. Lemonis send me my christmas order. Allison [ laughs ] lemonis a lot of candy. The stores been open for close to six months, and were generating nearly 200,000 a month. But this is just the beginning of something really big. Today im meeting pete and allison at the candy expo. Peter hey allison [ laughs ] lemonis how are you . Peter how are you . Lemonis look, i know were here to do business and were supposed to be doing research, but honestly, i just love going to the candy show. Its a ton of fun. Allison [ laughs ] peter how do i look . Allison perfect. Peter [ laughs ] lemonis im thrilled with the fact that pete is the face of this company. Peter hi. Woman i loved your show. Allison thank you. Woman congratulations. Lemonis and did you wonder if his hair was really that crazy . Woman i did, yes. Allison oh, wonderful. Lemonis people absolutely love him. Business is up, margins are up, profitability is up. But what i think is even more exciting is pete went from being a candy maker to a candy mogul. Today sweet petes is a north florida destination. Weve got the best candy, but we also offer up great food. This year, well generate almost 4 million in sales. [ beep, Cash Register dings ] but thats not enough, right . The business has to continue to grow. I think the Hotel Markets huge. What i want to try to do is get into their rooms, get into the minibars. So what were working on right now is a meeting thats gonna happen later today at the ponte vedra inn and club, the biggest resort in jacksonville. Is there anything we could do in their colors . Allison i think a jelly beans always good. So if you did pineapple and coconut, thats beachy and its yellow and white. Lemonis okay. I feel like weve put a great collection together, and im excited to see how it goes. Im marcus. How are you . Steven im steven jones. Lemonis nice to meet you, sir. Allison hi. Im allison. Lemonis this hotel is one of the best resorts in all of florida. People from all over the country come here. How many total rooms in the entire property . Steven the property consists of 250 rooms. Lemonis i think its a real opportunity to not only make money, but get the brand out. Steven if youre looking at our colors, is that something you could incorporate into it . Allison yes. Absolutely. John how do i know if this has been in a room for four months . Allison we would codate. However, once your guests are tasting it, thats not going to be an issue. Lemonis we sell about 1 million a year just in sea salt caramels. John wow. Steven a lot here. John yeah. A lot of options and a lot of customization, which is nice, as well. Allison yeah, we would love to work with you. Steven okay. Lemonis this could be one of the most exciting projects that sweet petes embarks on. A typical hotel room would have about 30 worth of candy in each room, with a profit margin for sweet petes at about 50 . If that candy turns over once a week, that means that in an annual basis, it would be 1,560 worth of revenue, or 780 worth of gross. For every 1,000 rooms that were able to secure, that would be an additional 1. 5 million worth of revenue, 780,000 worth of gross profit. Thats just on 1,000 rooms. Woman and if you ever have an event, we have a candy buffet. Lemonis you could even use the mobile trailer. Allison yeah. Steven excellent. Lemonis the fact that ponte vedra is allin on having the product sold there makes me very happy. Its the first time weve taken sweet petes outside of the actual location. Thanks for taking the meeting. Steven our pleasure. Lemonis thank you. John thank you. Yeah. Lemonis appreciate it. This business has had incredible growth. But the momentum we have we have to capitalize on. We have to take advantage of every opportunity. I had a phone call with the Jacksonville Jaguars, a team in the nfl. And theyre looking for a partnership with sweet petes. And when the nfl calls, you listen. Hussein, good seeing you again. Hussein welcome to jacksonville. How are you . Lemonis good. This is pete. Hussein pete, how are you . Lemonis from sweet petes. And this is allison. Allison hi. Nice to meet you. Hussein its a pleasure. Lets go. Lemonis the Jacksonville Jaguars were second in the nfl with concession growth last year, and that presents a real opportunity. Peter oh, my gosh. That is awesome. Lemonis there are close to 70,000 people that come to events here, not only nfl games. Peter that is so cool. Lemonis were gonna have access to the entire stadium. Well be able to sell into the private suites. Peter are you kidding me . Theres like cabanas here. Lemonis well also be able to sell in the concession area. Hussein so, i was thinking this sort of area. These are portable carts. They come in all shapes and sizes. Lemonis and were also being given access to the club level. I think the biggest benefit with the club level, theyre the Decision Makers that come from the corporations that are sponsors at the stadium. Our goal is to meet those Decision Makers that ultimately control how their business spends their money. If hes here, hes gonna get business cards. People are gonna say, i own the bank. I own the big realestate company. Allison corporate orders. Like, we just got one for 48,000. You land one of those. Lemonis pays for it. Allison yeah, and youre good. Lemonis corporations not only buy products for their customers, but they buy it for store openings, new product launches, and marketing campaigns. One corporate client could be anywhere from 50,000 to 100,000 a year. When you go into the club level, there are hundreds and hundreds of companies. To get to 1 million, you only need to shake about 10 to 12 hands. Are you guys comfortable moving forward for this fall, for this season . Peter i think so. Yeah. Lemonis i know that this intimidates pete because he was comfortable producing 400,000 a year. Hes now producing 4 million a year. This stadium deal for pete means more inventory, more staff. This is a game changer for them. With the development of all this new business, whether its the jaguars or the hotel or the constant customers that are coming through the front doors, something has to change. Things definitely cant stay the same. Im concerned that were out of space. What do you think we would do with this building . Into a real guys night out to see if they could find the guy who uses just for men. Its me. No way. Just for men gives you a natural grayfree look. Just lather in. In just five minutes. Greatlooking hair, made easy. Just for men. This highly soughtafter device from progressive can be yours for. Twenty grand . No we are giving it away for just 3 easy payments of 4. 99 plus tax the lines are blowing up weve got deborah from poughkeepsie. Flo yeah, no, its flo. You guys realize anyone can use the name your price tool for free on progressive. Com, right . [ laughing nervously ] [ pickles whines ] i know, its like theyre always on television. What . Great change comes from doing the right thing. Like the radical idea that health isnt an industry. Its a cause. So we do things differently. We combine care and coverage. And believe prevention is the most powerful of cures. So forgive us for not going with the flow. We just think the flow should go with us. Which makes us rebels with one cause. Your health. Lemonis we opened up the new sweet petes in Downtown Jacksonville over six months ago, and business is off the charts. Sales are up tenfold. Now were making new deals with the Jacksonville Jaguars and the ponte vedra inn and club. But i have to be honest this thing is bursting at the seams, and something has to change. But i may be staring at the solution. And what do you think we would do with this building . I put an offer in, so were gonna do it. Allison wow. Lemonis you want to see . Allison yeah. I would love to see it. Lemonis lets go. What became available was a building right next to sweet petes. Its a 17,000squarefoot building. Allison wow. Lemonis its three floors. That gives me the opportunity to increase our internet and wholesale business, host more parties, conduct more classes. I mean, honestly, it opens up a whole new world. Allison look at all the windows. Its nice. Lemonis its got great bones, solid walls, but the inside, it looks just like the first building did a war zone. Peter holy. Allison yeah, thats a little [ laughs ] lemonis this building is gonna cost me just under 1 million, and ill have to spend another 1 million to get it right a 2 million investment. Ive already spent close to 4 million at sweet petes, and this will take my total investment to 6 million. Peter you could take the third floor and make that retail space, too. Lemonis in order to be successful in business, you have to be willing to take risk. But it has to be somewhat calculated. We know we need more storage, and we know we need more classrooms, and we know we need more retail. Most of my money is going into real estate, which is a lot safer, but i also know that people like fun and they like candy. Its not a fad. Its here to stay. All right, lets head back. So, the First Quarter in 2015, we did 538,000 compared to like 35,000 the year before. Allison yeah. Peter thats a big difference. Oh. Lemonis with this business doing as much as it is today, what would you say the business is worth . Peter i dont know how to put a value on it because i just see how magical this place is. Lemonis what do you think its worth, allison . Allison i mean, 3 million or 4 million . Lemonis thats right. In a year. Peter that blows my mind. Allison such a short time. I feel like im learning a lot all the time. Lemonis all of us. Me, too. And we are gonna open up another one. Peter so we can just do more. So, this formula works. Lemonis yeah, so now all of a sudden, youre, like, down with it, right . Over a year and a half ago, i was in a very small house with a very small group of people. Id like to get the staff together in the other room. And im proud of the fact that the crew has grown so big. When i was a kid, i always wanted to have a candy store. But i never would have imagined in a million years that i would be on a team with all of you with a candy store that looks like this. I mean, could you ever have imagined . Man i was hoping something would happen. [ laughter ] lemonis and so its been a hard process, right . But we learned that people do make the difference and that when i come here and everything is organized, perfect, and you guys are smiling and you guys did not know i was coming. [ laughter ] all you guys do a great job, and i know that pete and allison are very proud to call you their family. And im proud to be part of the family, right . Allison im not crying. [ laughter ] lemonis when i first showed up at sweet petes, there was four or five people working there. Today there are close to 90 people working there. And this business provides a lot of opportunity for not only people to make a living, but for them to grow with the company. And thats what i think people are ultimately looking for. What are you crying about . Woman im so excited you got a candy store. [ laughter ] [ applause ] lemonis since weve started this show, ive crisscrossed this country, and weve seen over 30 businesses. And ive made 20 deals. But the first one is always the most special. Woman good morning. This is 1800carcash. Lemonis carcash is a new york city autobuying business where you can literally drive in and sell your car for cash. Jon id feel comfortable paying 8,000 for it. Lemonis in 1977, this was a big idea, and bruce baron was the guy who came up with it. The money was good, and when his sons came of age, they joined him. Andrew pleased to meet you. Lemonis but in 2008, the country was in a big recession, and carcash took a big hit. Just a few years later, bruce baron passed away. And his sons andrew and jonathan were left trying to fix what was now a struggling business. Andrew my jobs on the line. Lemonis by the time i showed up at carcash, they were literally just days away from having to shut their doors. Jon were dangerously low on cash right now, which means i cant buy cars. Lemonis the place looked terrible, and their process was totally broken. Jon if i gave 16,000, youd pay 17,000 for it . What do you think . Man thatll work. Lemonis they were selling their cars to middlemen who were walking away with most of the profits. Theyre taking. Margin right out of your pocket. Do you not see that . The financials were not pretty, and even though carcash was taking in 13 million of sales, they were still losing around 200,000 a year, and they were borrowing money to buy time. And with the losses mounting, you could see that the relationship between the brothers had turned toxic. Jon theres no. Way to saym pissed would be an understatement. Lemonis but what was a great idea in 1977 was still a great idea. With a few changes, we could fix this business and scale it and turn carcash into a national brand. So, im willing to give you guys 200,000, but i have to be convinced that the prototype works. Do we have a deal . Jon im in. Lemonis we shook hands and started the overhaul. First, i spent over 350,000 totally renovating this facility and creating a better customer experience. I paid down another 300,000 in debt and liabilities and put aside another 450,000 for working capital. You cant be in the autobuying business if you dont have the money to buy the cars. It turned into a milliondollar deal and was money wellspent. We changed the process. The wholesalers were out. And our average profit went from 1,100 to 2,000 a car. We started advertising, and that brought in a lot more customers. We used to buy and sell around 70 cars a month, but now were closer to 200 cars a month. Within our first year, the revenue went from 13 million to 20 million. And that 200,000 loss turned into a 400,000 profit. Carcash was back in the black. Bruce barons big idea was back on its feet. Carcash has expanded dramatically over the last two years. There are locations around the country, and we have a call center where 1800carcash calls go into. The cars are either going directly to the auction, where were maximizing our profit, or theyre being sold at automatch, a usedcar Retail Center that was started here on the show. But back at our original new york store, were facing a very serious problem. Andrew the landlord has revoked our lease here. Lemonis what do you mean, hes revoked it . Andrew hes trying to use a clause from like 30 years ago to kick us out. Jon he sent this letter. I wanted to show you this letter. Lemonis do you have the letter . Jon yeah, i do. Lemonis can i see it . Jon sure. Lemonis lease dated 1987. Dear mr. Baron, landlord hereby exercises its right to terminate the lease. Jon i grew up here. I was this big running around here. Andrew yeah. Jon to lose this spot would be catastrophic. Lemonis if you go back and you look at what these brothers have been through, for the last couple of years, theyve done an amazing job digging out of a very big hole. Theyre making money. They pay their rent on time, and now this . [ dialing ] [ ringing ] theyve worked their butts off, and ill take this fight on all by myself. Marcus lemonis with carcash regarding an eviction. Leso, these guys have been here carcash for 30 years. Eviction. Youre getting paid. They made improvements to the space, and you just decided you didnt want them here anymore. Unfortunately, their landlord, who didnt want his voice recorded, wasnt willing to budge. Carcash has been in this location for almost 40 years, and they currently pay about 27,000 in rent. Now, i know the new york city market is hotter today than it ever has been, but whats he gonna get, 28,000, 29,000 . After this business being here over 30 years and always paying rent on time . After 9 million in rent . Andrew i feel like my father worked his whole life here. And now just like a flick of a wand and, you know, youre out. It hurts. [ sniffles ] it really hurts. Lemonis standing here looking at andrew, i feel somewhat helpless because this is two brothers who spent their whole life here and they built a lot of memories with their dad. Andrew its not right. Really, its not right. Lemonis i need to kind of get them collected and realize that we need to move forward and look for a new opportunity. Move on . Jon i want to move on. Id like to keep the business on the west side of manhattan. Andrew this is the heart of the Automobile Industry in new york city. Lemonis okay. All right. Guys, let me make a few calls, okay . Jon okay, marcus. Andrew thanks, marcus. Lemonis you know, theres this old saying that when one door closes, another one opens. Man these walls are gonna be all blown out. Lemonis i think i just found that door on a much better location. Man 250,000 cars a day pass here. Lemonis the west side highway runs from west 72nd street all the way down the hudson river to lower manhattan. Its one of the busiest streets in manhattan. Quite frankly, the exposure is gonna be great for business. Man you could fit about 18 to 20 cars within this space. Lemonis the challenge with our Current Space is that theres one way in and one way out. This has one way in and another way out. Jon i could literally look at like four or five cars at once. Lemonis in the old location, we were appraising around 600 cars a month and buying about 1 3 of everything we appraised, so 200 cars a month. In this new location, we should appraise about 1,000 cars a month and buy about 1 3 of them, so 333 cars a month. Not only is it a better location, but the rents only 1,000 a month more. So you bring them in and you back them in. Jon mmhmm. Lemonis you know, what initially looked like a really bad situation may be turning out to be not so bad. I think bruce baron would be very happy about what the future looks like. Okay, guys. Last october, i came to new york city to meet the goureau family. They own an upscale Clothing Company called courage. B. Noemie was the chief designer. Noemie look all the detail inside. Lemonis and her kids, stephanie and nicolas, ran the business. Nicolas did you make the labels for these yet . Lemonis the goureau family have been designing and retailing upscale clothing since 2008. Noemie voila. Lemonis . With seven Stores Across the country. Courage. B was doing around 5 million in annual sales, but they were losing 500,000. Stephanie were losing money. Nicolas calm down. Lemonis their connecticut store was chaotic, their merchandise a mess. Some of their clothing had serious quality issues. Its disturbing. But even worse, the stockroom. Nicolas so, the inventory that we have down here this is what didnt make it. Lemonis this was a room that was filled with years of bad decisions and hundreds of thousands of dollars of dead inventory. Who designed, like, these two things right here . Stephanie noemie did. Nicolas well, we could probably pick 100 things like that. Noemie we liquidate that. Nicolas it doesnt matter if we liquidate. Dont try and justify it. It wasnt correct. Lemonis and then there was nicolas. Nicolas you want all of the accolade without doing any of the work. Lemonis he was constantly sniping at his mother. There was a lot to fix. But there was a lot to like. So i made a deal for 800,000 for 30 of the business. Nicolas ive never seen a check that big before. Stephanie [ chuckles ] lemonis youll be making checks much bigger than this. I believed in noemies ability, but she needed discipline, so i had them focus on five categories, the pillars of the new courage. B dresses, tops, pants, bags, and the new noemie collection. I wanted them to get these five basic categories right first before they expanded. Woman this is 128 inches. Lemonis while we were creating a new line, we were also starting renovations at all their locations across the country. But one problem still lingered. Nicolas you dont change that. We will tell you whether it is financially and logistically feasible to do. Lemonis i need to kind of understand what i just walked into. Nicolas [ scoffs ] lemonis you cant run a successful business if the relationships are broken. When you walk in that door, you are her boss. But you would never talk to an employee that way. So why do you . Nicolas its just sadness ive been carrying my whole life. Lemonis about your dad . Nicolas [ voice breaking ] yeah. I heard something fall, and the first thing i saw was my mother on top of him trying to wake him up. And he was dying. He was having a heart attack. I saw my 5yearold sister, and she looked at me, she goes, whats going on . And i said, everythings gonna be okay. [ sniffles ] and i looked at my mother, and i said, i think stephanie and i need to go to school. I was 8 years old. Lemonis nicolas started to address the old wounds and really started to open up about the burden that he felt. And in the end, that helped all of us move forward. Gonna have to show your mom some more love. Nicolas yeah. Come here. Lemonis immediately there was a spike in business, and it was obvious to me that customers were loving the new look. Woman this is amazing. So highend. Lemonis . And the new product. Woman oh, my god. I love this top. Lemonis business was up almost 10 , and the margins were heading in the right direction. You guys are a dangerous trio. Im just trying to keep up with you guys. [ cork pops ] stephanie whoo noemie wow. Lemonis a lot of things have happened over the last year at courage. B. All of the Unprofitable Stores have been closed. Weve rented a warehouse in plainview meant to do one thing take all of the dead inventory that was sitting in the basements and the back rooms and the offices and get it in one place so i can liquidate it. Weve also established a thirdparty Logistics Business in visual pak, and that allows for the inventory to come into a Central Location and go out to the stores in an organized manner, and so its a totally different model. While sales are up 30 and while theres 150,000 in the bank and theres no debt, nicolas and stephanie still are struggling to follow a process. Hey, guys. Stephanie hey, marcus. Noemie good morning lemonis so, i thought we could get some stuff done. Nicolas okay. Lemonis and i want to talk about inventory. Nicolas okay. Lemonis why are you smiling . [ laughter ] nicolas no, yeah. Lemonis yeah. Thats it, so. Courage. B has a ton of potential, but in order for this to work, they have to follow the plan. And theyve kind of gone off and made some mistakes in decisions without me. So, we spent a lot of time talking about staying in your lanes and having a plan. Look, lets not stephanie wait. Im curious. Do you not think were staying in our lanes . Lemonis no way. You guys are all over the place still. Stephanie really . Lemonis yep. Stephanie wow. Lemonis yep. And so, at the end of the day, right, we created five pillars, and we created them for a reason. Nicolas yeah. Lemonis to do what . Nicolas to segment the business and be able to analyze it properly. Lemonis okay, so how many pillars do we actually have right now . Nicolas today, were at seven. Lemonis okay, and so how many of those pillars got added without me knowing it . Nicolas one. Lemonis okay. What is the pillar that you added . Nicolas outerwear. Lemonis why . Nicolas we already had items on order that we couldnt cancel. Lemonis now, im gonna call. On you. Stephanie no, we had a commitment to order. Lemonis im gonna call. On you, okay . We spent june, july, august, september, october, november, december together. Never once did i ever hear about outerwear. Never once. Why . Nicolas i screwed up. Lemonis the fact that nicolas went out and spent money is part of my issue, because he didnt do it with permission. The bigger issue that i have is that we started with five pillars and we all agreed that we werent going to expand those categories until we felt like we had everything right. Adding the pillar on his own just flew in the face of following our plan. Thats how this business got in trouble before. Nicolas im not even gonna come up with an excuse. It is what it is. Lemonis and so when you why do you seem so agitated, by the way . Nicolas agitated . Lemonis yeah. Nicolas my back hurts. Lemonis thats why youre agitated . Nicolas yeah. Tired. Lemonis mmhmm. Nicolas its okay. No problem. Lemonis if you want to be sarcastic, thats fine. Nicolas im not being sarcastic. Lemonis are you sure its not me coming at you . Nicolas youve never come at me before . Lemonis i always come at you. Nicolas okay, so. Lemonis because my job is to make you better. Nicolas i have never denied that. Lemonis ive seen this before with him where he kind of just shuts down and kind of smirks and smiles. Hes not really laughing. Hes nervous. And he knows that he got caught doing something that he wasnt supposed to. I want to look upstairs and see whats there. Stephanie sure. Yeah. Nicolas that was awesome. Lemonis what the. Is going on in here . Legalzoom has your back. For your business, our trusted network of attorneys has provided guidance to over 100,000 people just like you. Visit legalzoom today. The legal help you can count on. Legalzoom. Legal help is here. In new york state, we believe tomorrow starts today. All across the state the economy is growing, with creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. Like in utica, where a new kind of workforce is being trained. And in albany, the nanotechnology capital of the world. 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They both knew that we were putting a plan in place to have all of the inventory in a central warehouse, and the way they were handling this inventory in the stockroom was totally against that plan, and they knew it. Would it be an accurate or an inaccurate statement for me to say that theres more inventory dollars in this room than there is in the entire store . Nicolas yes, its accurate. Lemonis all of that inventory thats in there is basically cash sitting on tables and shelves and on the floor. On a retail basis, this is a couple thousand dollars. Okay. Ill see you guys back at the office later. Nicolas okay. Lemonis okay. Stephanie i didnt know all this was here. Lemonis hi. Stephanie hey. Lemonis hey, nic. Nicolas whats up . Lemonis business is up 30 . I get it. And the fact that the debt is all paid off and the fact that theres 150,000 in the bank does not give them the license to be sloppy and to not follow the plan. Part of the reason that ive been icecold the last couple of weeks. Nicolas [ scoffs ] lemonis . Just so you know. Its, like, do you want to hear this, or do you want me to shut up, or what do you want me to do . Nicolas no, please. Lemonis part of the reason that i wanted the Central Distribution warehouse put in place is to bring law and order to the numberone thing that you told me killed this Company Prior to me getting here, which was a lack of an ordering process, a lack of a review process, a lack of a knowledge of what money was able to be spent to buy stuff, and a lack of an inventory process. Those were your words, not mine. Right . Nicolas yes. Lemonis okay. So, tell me why you still dont buy off until the inventory cuts up at the warehouse. Why do you still believe that things have to come here first . Nicolas i dont think they have to come here first. Lemonis nothing is gonna come here, nicolas . Nicolas i dont think so. Lemonis and nothings gonna get tagged . That changed in the last two weeks . Because your comment was, to my team, is that things are gonna still come here and theyre gonna get tagged because the other people dont know how to tag them. I have a relationship with visual pak, the warehouse, and i dont appreciate him thinking that im not gonna find that stuff out. So why cant it be tagged and bagged at visual pak . Nicolas we havent shown them how to do it yet. Lemonis why not . Nicolas problem is that he believes sometimes that he knows it all, and hes a control freak. If its not his idea, its not a good one. And were literally sitting across from each other at the desk like its a poker game. And im not gonna play poker, not with my money. Im just im not gonna play this game with you guys. Stephanie i dont understand. What just happened . Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. E trade is all about seizing opportunity. So im going to take this opportunity to go off script. So if i wanna go to jersey and check out shotsy tuccerellis portfolio, whats it to you . Or im a scottish mason whose assets are made of stone like me heart. Papa youre no son of mine or perhaps its time to seize the day. Dont just see opportunity, seize it applause seize it nicolas we havent shown them tagged ahow to do it yet. Al pak . Lemonis why not . Theres a tremendous power struggle that goes on at courage. B, and while he sits across from me with an arrogant sort of attitude, im not gonna tolerate it. Im just im not gonna play this game with you guys. Stephanie i dont understand. Lemonis i know deep down he knows im right. I just think hes struggling to admit it. And im not gonna play games anymore. Nicolas can i talk to you for a second . Lemonis sure. What do you want to talk about . Nicolas okay, i want to resolve this. Lemonis you basically sat there, and youve been grinning at me for an hour. He wasnt being straight with me about the fact the product was making a pit stop in new york city, something that i was very clear about wasnt gonna happen. We all agreed the product goes from the manufacturer to a Central Distribution warehouse. And it only goes to the stores where we know the products gonna be sold, essentially eliminating steps along the way. Well, eliminating the steps is eliminating a u. P. S. Bill. And eliminating a u. P. S. Bill is lowering the cost of the product and raising the gross profit on the item. Nicolas ive been grinning at you because im very uncomfortable with this, and youre 100 right. Lemonis okay, well, the inventory thats sitting in greenwich, the inventory thats sitting in any store it just needs to go to plainview kind of once and for all. Nicolas yeah. Lemonis we have been talking about it a while, and so when you tell me that its done and then its not, i kind of feel like youre kind of, like. Me cause you dont want to deal with it. That was kind of like a big f you to me. Nicolas but. Lemonis thats where my dark space is coming from. Nicolas right. I messed up. Lemonis so, nicolas, heres the deal, okay . Were gonna move forward from all this noise. Both of you still struggle to trust the process a little, but why . Nicolas its unbelievable. Thats the only way to describe all this. Lemonis that what weve done in a short period of time is unbelievable . Nicolas yeah. Like, in the. Lemonis tell me. Nicolas i cant speak. Lemonis tell me. Nicolas like, i dont feel. [ sniffles ] im having a tough time. Lemonis i understand. Ive worked almost a year with nicolas, and i have a tremendous affection for him as an individual. But he has these moments where he just totally melts down. And what im learning is that it comes from insecurity. Nicolas i have a personal issue. Lemonis we all have personal issues, bud. I mean, my list of personal issues is, like, huge. Nicolas yeah, im sure youve created mechanisms to deal with some of them. I havent. Lemonis i think all of us have a level of insecurity that we dont want to show people. I know that i do. Nicolas has struggled trusting people all his life. And now that were close, hes struggling to trust me. And so his defense mechanism is to shut down. Talk about it. Personal in the trust issue . Nicolas no, its its here. Its nowhere else. Lemonis you dont feel like youre deserving of it . Nicolas thats right. Lemonis is that what it is . Why . Nicolas i dont know. Lemonis you work your ass off. Nicolas yeah, its unbelievable. That you find a mentor that you can have a that believes in you so much. Lemonis i genuinely and wholeheartedly believe in you. You need to know that. I think part of the issue that exists with nicolas in business is that hes been on his own for so long. The loss of his father at such an early age created this void in his life where he just doesnt trust people, and he feels like theyre gonna disappear. Im not going anywhere because i know the potential that he has inside of him is unbelievable. Want to look at some of the cool spring stuff . Nicolas yeah. Lemonis lets do that. Steph . Lets look at some of the cool spring stuff. Its always good to clear the air, but we actually have some business clearing to do. Were gonna go to plainview to see what i call the final resting place of years of mistakes. This represents how many years of mistakes . Nicolas four years . Lemonis and how many years have you been in business . Nicolas 5 1 2. Lemonis were gonna get rid of the product and were gonna move on and we are never gonna make these mistakes again. So, all this stuff is sold, and i sold it for cents on the dollar. This is really a fresh start for you. Nicolas just. I dont ever want to see this stuff again, you know . Lemonis yeah. You ready to do this . Nicolas yeah, lets go. Lemonis all right, lets load it up on the truck. Nicolas these weigh a. Ton. Lemonis lets do it together. This is the moment in time where the years and years of mistakes, whether it was, my mom bought product, or stephanie bought product, or i bought product, or they stuffed it in the basement. Nicolas [ chuckling ] oh, my god. Lemonis . It basically all came together in one building. But its better than nothing. Nicolas its better than sitting in boxes. Lemonis and in a matter of a minute, we made the decision to move on. The day we got rid of the inventory in plainview marked a turning point for not only nicolas, but the business, as well. Man so, when you get an order, we know that it punches in, and we can pull up this order, pack it, and ship it out. Lemonis and now that weve put more process in place, were experiencing good sales and good track record, were now having some real fun. Noemie yeah. Perfect. Woman beautiful. Lemonis noemie put together a photo shoot to display some of her new products for spring and summer. Woman yes, darling. Sweetie, absolutely fabulous. Lemonis and even bigger stuff, like opening up our first store in chicago. Im about to walk into what i think is the beginning of the next chapter for courage b. That looks great, doesnt it . Noemie yeah lemonis for Business Advice and extra scenes from the show, log on to. Lemonis whats up, happy train . Stephanie happy. [ laughs ] isnt this awesome . Im good lemonis it looks great, doesnt it . Stephanie yes hes so happy. Nicolas thank you. Lemonis this has been a long week. Nicolas thank you. Lemonis the store that weve opened up in chicago isnt just exciting to me because its in my hometown and it looks nice and the product looks great. It really is the point in time where i really feel like nicolas and stephanie are starting to understand what the process should look like. You know what i like the most . Look at nicolas and stephanie working together. They both look happy. Hes actually smiling. Nicolas [ laughs ] lemonis and what does the stockroom look like . Nicolas the stockroom here . It is as organized as organized can be. Lemonis let me see it. Nicolas . Because this will be the model for our stockrooms moving forward. Lemonis so, whats most unique about it is what . Nicolas the size. Lemonis mmhmm. How small is it . Nicolas this stockroom is about 1 3 the size of one of our stockrooms that we had before. Lemonis or 1 5. Nicolas 1 5. Lemonis it isnt just about seeing the clothes on hangers and having the shelves be right. Its about nicolas understanding that this is the right way to run his business. And really, its just about trusting the process. The next 12 months have to be a little smoother than the last 8 months. Nicolas yeah. Lemonis and im not saying they were bad, but i think youve grown amazingly in the last eight months. And i have to give you a lot of credit. Nicolas thank you. Lemonis i have to give you a lot of credit. Hes Getting Better at trusting me. Hes Getting Better at letting go of having to control every single detail. And it tells me that the future is very bright. Nicolas we did something, and, i mean, if you can tell from today, the last week, like, somethings happening here. Some sort of magic has occurred. And this is art. What weve done here is art. Lemonis ive been trying to tell this to people for years. Business is never about dollars and cents only. Business, 100 , is about people and relationships and the inner workings of them. Nicolas this brand was founded by a family that had a lot of courage, and now marcus is part of the family. We want this to be not just a place for you guys to buy something, we want this to be a place for you guys to belong to and come to and to have courage. And i think having courage in life is the most incredible attribute and the most important one. So we invite you to be courageous with us. Noemie thank you. Thank you, everybody. Lemonis im not the smartest guy in the room. Im not the richest guy youll ever meet. Im definitely not the bestlooking guy. But i understand people. And so i have to use that talent. Im proud of you. Stephanie thank you. Lemonis and i really feel like thats my purpose in life to help people in business. Sam come on up toniand have a sample. Man mmm. Lemonis . A gourmet marshmallow business operates like one big family. Sam were married. Alexa and this is my father. Lemonis . And thats exactly the problem. Sam youre coming off like youre saying [bleep] you to your daughter, and im gonna lay it out. Max im not saying that. Lemonis the father of one of the owners has commandeered the kitchen. Theyre paying more than half the rent and they have 10 of the space. Max theyre trying to hustle me lemonis . Contaminating their sweets. But theyre making marshmallows with onions and garlic in the air . Woman [ clears throat ] whoa. Lemonis dont like it . Girl not necessarily. Lemonis . And poisoning their relationship. Sam its your dad and you love him, but i need you to be on my side. Lemonis if i cant fix their process. Man 2 eight [bleep] pounds its not a gallon lemonis what just happened . And put an end to the drama