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Michael gives a fluent pitch for his hopes to franchise his remodelled hot and cold food vans that dispense ice cream as well.

Former ice cream vendor Duncan Bannatyne is quick to note that in welding a single-headed carpigiani machine to his sandwich van he has selected the most profitable of all ice cream machines on the market. However he is puzzled the Cheshire-based entrepreneur is keeping his franchise model separate from his well established sandwich company.

It is a point immediately picked up on by an irascible Peter Jones who thinks Michael is trying to de-risk by transferring any potential risk to the investor.

Michael thinks this is unfair and points out he has already put £160,000 of his own money in the venture.

James Caan observes that having once owned a business like this, he believes the franchise model is "fraught with difficulty" and that Michael should be very careful about the claims he makes to possible franchisees.

"Your van didn't work" is Michael's tart reply.

James Caan retorts that a man who has made £100,000 after 12 years in business "doesn't inspire me with confidence" and he declares himself out.

Deborah Meaden notes that to ask for £100,000 for just 15% is "complete nonsense" as his machine has nothing unique about it. She, too is out.

Theo Paphitis agrees with Deborah observing "I would rather stick my head in a ice-cream machine" than invest. He, too, is out.

Duncan Bannatyne cannot see why anyone would want to either buy or invest in a franchise for one of Michael's machines - he believes an ice-cream van would be a better bet and he too is out.

Peter Jones is still preplexed that Michael has split his core business from the franchise model and asks whether he would consider including the whole business in the mix rather than separating it out as this would be more attractive for an investor.

Michael concedes Peter's point and the Dragon then presses it home by offering the entrepreneur the £100,000 he is seeking for 35% of his entire business.

Michael considers the offer and agrees to it.

The deal done in the Den:

Peter Jones: £100,00 for a 35% stake in Earle's