Do you want to start a movie rental business by buying RedBox franchise? If YES, here is how much it cost to open a RedBox franchise.
Redbox with its iconic red splashed boxes, is a self-contained, self-serve movie rental system. Looking like old telephone booths, Redboxes are located at a number of different retail locations across the country including McDonald’s eateries. It would interest you to know that the Redbox company was founded by McDonald’s in 2014. These boxes are common sights in malls and major retailers such as Wal-Mart and Walgreens.
Consumers who want to rent a movie can reserve one online or simply go to the Redbox location, search the titles that are available and rent it using a credit card, then take it home to watch. Redbox operates like every other vending machine in the market, but the only difference is that it vends movies and games not products or edibles.
Redbox is the most viable company in the industry as their large red boxes are very noticeable. They also have over 50 percent of the DVD rental market. For $1.20, you can get one movie off the machine and the rental period is usually one day, that is 24 hours. You can return the movie to any other Redbox unit, which is very convenient for people travelling.
If you are aiming to buy a franchise, then a Redbox franchise would be a good one for you especially is you have limited startup cost and if you are looking for a business that can mostly run itself. Also, no franchise fee is needed to put up a local Redbox Plus location.
One thing you must however think about when starting a Redbox franchise is the site of the franchise. You must decide very cautiously on where you want to start your business, because this company does not accept every location.
How Much It Cost to Open a Redbox Franchise
Redbox kiosks are extremely profitable and managing a DVD kiosk business requires very little time. So, not only is there a great ROI, there’s also a very strong ‘return on time’. A Redbox kiosk that’s been installed at least one year will generate over $60,000/year, according to research. There are thousands of locations that generate well over $100,000/year of course.
To manage a Redbox kiosk or any DVD kiosk business requires as little as one hour per week. And, for an owner-operator entrepreneur or store owner, a movie kiosk that generates over $60,000 in revenue should earn over $50,000/year in gross profit. The movie rental kiosk business can be very profitable and if a Redbox franchise existed with that type of profitability, it would be one of the most profitable franchise opportunities of all time.
There is a price attached to doing business under the Redbox brand, but as of now, that price is largely unknown. But compared to other companies offering similar services to the Redbox franchise, the startup cost/cost of purchasing a DVDNow franchise, for instance, hovers around the $25,000 mark.
The truth is that you won’t know how much a Redbox machine costs to have it installed at your place of business until you apply for it. Redbox doesn’t franchise its boxes, they offer leases. All Redbox locations nationwide are owned and operated by Redbox Automated Retail. Redbox does accept applications for their boxes to be installed at your place of business.
Steps on How to Get a Redbox Franchise
To get a Redbox franchise, the first thing you have to do is contact the company. You can do that by visiting the Redbox website online. Scroll to the bottom of the page and click “Jobs.” A new window will open up with the title “Browse Open Jobs.” Scroll to the bottom of the window that opened up and click on “Request a Redbox”. On the next page click “Business Owners Start Here” button. This action will take you to a web-based application to complete.
You must know that Redbox requires that your current business should serve at least 15,000 customers on a weekly basis, or that it should have that number of foot traffic. If you now that your business serves that number of people, you can go ahead and complete the rest of the form and submit it to the company.
2. Request Location Suitability Form
The next thing you have to do is to request a Location Suitability Form directly from Redbox in order to proceed. Once requested, this form will be sent through your email address. You may be requested to send in an image of the desired location so the company can verify it. Don’t be afraid to sell yourself and highlight the best parts of your location.
3. Check your mails
While you are on the process of requesting a franchise, you have to open up your email software or website daily. As most companies find emailing replies to be easy and free, check your email box for a reply from Redbox Customer Service Agents.
4. Complete the required forms
Complete any and all required paper which should include the contract agreement. The contract agreement states that the business must consistently sell a specific amount of DVDs each month, in order to be able to keep the machine activated in the Redbox system. Make sure to also include a money order. Payment is necessary to buy a machine for your company.
5. Sign an agreement
If you’re approved, then you will sign an agreement with Redbox regarding the lease of your location. You don’t actually get to own the machine or the movies. You are simply in charge of the place where the machine is. Redbox will send their own employees to that location to facilitate movie changes, billboard updates, and servicing of the machine. You’ll be paid for the space as you would be in any other type of vending agreement.