Does a Redbox Franchise Make Money?
A Redbox franchise is something that is very interesting to small, medium and large business owners. Many business owners like the idea of providing a good service to the local community, attracting customers to their stores and also making a nice profit while doing it. But how do entrepreneurs find out about getting a Redbox franchise or owning a Redbox?
One important question to answer is ‘Do Redbox actually sell their kiosks’. The quick answer to that is no. Redbox have built up a good reputation and brand with their kiosks, and by all accounts they are quite profitable for them, so there is actually no advantage to them is selling the goose that lays the golden egg. So although the Redbox kiosks come with high profit margin, the long terms costs to the parent company are actually quite low.
Can you buy a Redbox?
As mentioned above the quick answer to that question is a flat no. For the reasons mentioned above the Redbox parent company have decided their business model is to partner with businesses to allow them to have the redboxes in their locations but they don’t actually sell them. So the only way to get them is as part of a Redbox franchise. The good thing is when you you sign up and get accepted, the parent company, Outpost, offers full training and assistance to get your video rental business up and running. The fact that the DVD kiosk business does need a lot of time or skill, and requires a fairly low up front investment means its a good business to be in.
Plus entrepreneurial business owners know that the brightly colored Redbox kiosks have two advantages. They will give existing customers another reason to visit your stores, but they will also attract new customers to your venue, so its a perfect combination.And given that information out there estimates that a Redbox kiosk can generate between $50,000 and $100,000 dollars per year, its a great opportunity to get into if you can.