Do you want to open a movie theater business by buying Alamo Drafthouse franchise? If YES, here is how much it cost to open Alamo Drafthouse Cinema franchise successfully. The Alamo Drafthouse was established by Tim and Karrie League in 1977 on Colorado Street in the warehouse district of Austin, Texas.

The first theatre only had one screen and originally showed second run titles at a discounted admission; howbeit, within its first year of operation the venue caught the attention of many and soon became the host of various film premieres and visiting filmmakers.

Currently, Alamo Drafthouse Cinema has theatres throughout Texas and has begun expanding nationwide to New York, Colorado, San Francisco, Los Angeles and more. It was formed as a Texas limited liability company on April 22, 2010 as “Alamo Newco, LLC” and changed their name to Alamo Drafthouse Cinemas, LLC and began operations on May 28, 2010. Their principal business address is 612 A East 6th Street, Austin, Texas 78701.

Alamo Drafthouse Cinema is renowned as a dine-in theatre concept, focused on offering a unique entertainment and hospitality experience to its guests. All Alamo Drafthouse locations feature upscale food and beverage service at every seat, a themed bar for pre- and post-movie conversation and signature programming.

Note that with a world-class net promoter score of 80 points, it’s no surprise that this brand has nurtured a loyal consumer following. Alamo Drafthouse Cinema has also set the standard in dine-in cinema for more than two decades with an unequivocal focus on establishing an excellent movie going experience, a commitment to innovation, and continuously exceeding guest expectations.

This cinema has been successful owing to its commitment to a superior dining experience, a wonderful innovative approach to programming, and a zero-tolerance cell phone policy. Also note that all food is made to order in-house and served at your seat.

The menu mostly features a blend of film-inspired offerings and American classics. Presentation is very important to the company and they work hard to be leaders in quality. The Alamo Drafthouse is well known for having a strict policy that requires audience members to “maintain proper cinema going etiquette” that includes a strict no talking, no texting policy.

It is also the only premium dine-in movie theatre chain available for franchising. As a result the brand is growing faster than ever, with over 40% venue count growth in the last two years.

In a streaming world, movie theatres have continued to flourish with consumers seeking entertainment outside of their home. The North American box office revenue continues to grow year after year. In fact, five of the past seven years set box office records.

Financial Requirements of Opening an Alamo Drafthouse Cinemas Franchise

  • Net Worth Required: $10,000,000
  • Liquid Capital Required: $3,000,000
  • Total Investment: $9,052,500 – $21,482,500
  • Franchise Fee: $175,000 – $345,000
  • Royalty Fees: 5%
  • Advertising Fees: 1.00%
  • Initial Term: 10 years
  • Renewal Term: 5 years

Steps on How to Buy an Alamo Drafthouse Cinemas Franchise

Alamo Drafthouse Cinema is a well known dine-in theatre concept, focused on providing a distinctive entertainment and hospitality experience to its guests. Each location features upscale food and beverage service at every seat, a themed bar for pre-and-post movie conversation and signature programming. The following steps outline the franchise development and approval process:

1. Franchise Inquiry

The very first step is to complete the online franchise inquiry form and the company’s development team will review your submission details and contact you.

2. Pre-qualification

Immediately after initial discussions and review of your inquiry, you may receive the Franchise Disclosure Document (FDD) which will help you further evaluate the franchise opportunity.

3. Site Selection & Application

At this point, the franchisor will review your proposed site’s demographics and specific characteristics of the market. If you don’t have a site selected, they will discuss options with you. Immediately a proposed site has been selected, you will need to complete and submit a franchise application.

4. Franchise Agreement

Following the approval process, a franchise agreement is executed and you officially become an Alamo Drafthouse Cinema franchisee and can begin the development of your venue.

5. Construction and Renovation

Note that the company’s architecture and design team offers prototypical building plans for new construction and design guidance on building renovations. They will also work with you and your architect to modify plans for your site and local market to ensure the facilities meet the design standards of Alamo Drafthouse. The team is available to consult with you during the entire design and construction delivery process.

6. Training

Have it in mind that an extensive new venue training program is available for you and your venue leadership team. It consists of in-person, online, hands-on, and follow-up certifications so that all team members are ready to give guests a great experience.

7. Open & Operating

Always remember that the mission of Alamo Drafthouse Cinema is to ensure every guest has an awesome experience and is excited to come back. That is the more reason why supporting you in delivering the mission remains the franchisor’s top priority. After opening, the Franchise Operations Support team will be your primary point of contact and will work with your operations team to achieve your business goals.

Conclusion

Alamo Drafthouse Franchise are looking for franchisees who are experienced with the hospitality business, who understand and love what Alamo Drafthouse stands for, and who want to bring the company’s brand of excellent food, service, film presentation and original programming to their region, and have the resources to develop one or more Alamo Drafthouse Cinema venues.

Qualified franchisees are also expected to have extensive knowledge of trade area and the local real estate market that fits the profile for Alamo Drafthouse Cinemas.

Solomon. O'Chucks