How To Own A Redbox Franchise

How To Own A Redbox Franchise

Redbox automated kiosks allow people to rent DVDs, Blu rays and video games for a reasonable price. They are very recognizable because of the distinctive red box and are generally located busy stores and fast food restaurants. The advantage of them is they are quick and easy and open 24 hours a day.

How To Own A Redbox Franchise

If your a small business owner and a potential entrepreneur then you make have wondered if you could take up the option of owning or renting a Redbox as a business opportunity and have wondered how to own a redbox. But Redbox doesnt actually sell or rent the kiosks to the business that have them. They are just located near or in those businesses under an arrangement between Redbox and the business owners.

Redbox has been very successful as is shown by the number of redbox locations there are around the USA and also by how many competitors are trying to come up with similar business models to compete with Redbox. By placing kiosks outside popular stores, Redbox have made it very easy for people to make an impulse rental of a DVD or game while going to shop or eat.

The Redbox kiosks have touch screens to interact with customers, so the only thing that customers need is their credit card.The customer is told through the screen the rental terms of the DVD, so the only thing the customer has to do is to remember to return the DVD or a flat fee will be charged to their credit card for the cost of the DVD or game.

RedBox DVD Rental Vending Machine

As mentioned before if you want a Redbox kiosk for your business you have to apply for a Redbox machine and meet their requirements, the main one being that you have to have enough volume of business to justify the machine being placed at your location. Without the high volume of human traffic passing the machine, something like 15,000 customers a week, it is unlikely to be very profitable so your application is not likely to be accepted.

Once you apply to Redbox for a machine they will contact you if they want to take the application process further. If you are successful in getting a Redbox machine installed in your location, bear in mind that the kiosk is still wholly owned and maintained by Redbox who also rotate the film and game titles as and when necessary.

An alternative to Redbox is DVDNow. DVD now is more of a true franchise, with DVD rental kiosks that you can operate to generate an income. They provide you with everything you need to get started as a DVD rental kiosk operator. DVDNow kiosks operate in much the same way as Redbox.

So for less than $25,000 you can get started in your own DVD Rental business. And with something like 30% of all DVD and game rentals taking place through kiosks now this is a great time to be entering the market.

But hows does Redbox survive in a market even when other entertainment sources are available such as Netflix and Amazon that stream movies and tv programmes directly down to your tv via the internet are doing really well. How much room is there for a kiĆ²sk that rents and sells Dvds.

The big point to take away is that Redbox is not actually a franchise as most people understand them. The stores you see with Redbox machines do not own them either. They are still owned and maintained by Redbox but the income generated goes to Redbox themselves who then pay store owners to provide a Redbox at their location.

If your goal is going to be to apply to get a redbox at your location then the main requirement is going to be if you have enough customers that pass the machine to make it pritable to have one located there. If you look around you will notice that redboxes tend to be located at stores where there are high volumes of customer traffic. The more customers passing the machine the more likely they are to stop and rent from it.

So if you have a successful business wih a reasonably high turnover of customers you are much more likely to have a profitable location for a Redbox and have more chance of a successful application. So convenience stores, supermarkets and shopping malls are lkely to do well as they tend tohave a high volume of customers.

If you do make an application to Redbox and you are successful, you would be wise to engage the services of a lawyer before you sogn on the dotted line. Of course you will need to sign some sort of contract with the Redbox company. But just like any business or personal contract, you should have the contract reviewed by a fully qualified lawyer before you sign up. This is to ensure that there arent any unfavourable terms that could leave you out of pocket.

The contract will likely state how and who is responsible for the maintenance of the Redbox machine. Your lawyer will be able to confirm that the contract isnt going to leave you with huge costs if the Redbox machine turns or to not be profitable for you. Of course there will be a cost associated with asking your lawyer to check you contract, but that should be muh cheaper than finding out later that you have entered into an unfavourable contract thats leaves you out of pocket.

One of the best things about Redbox machines that make them very attractiive to business owners is that they dont need any extra staff to look after them. All the work of maintaining the machines is either dont remotely by Redbox engineers or locally by Redbox technicians. Generally the only maintainance on the Redbox machines wil be to load up new titles and replace or remove old ones to keep the machine up to date.

The other popular thing is that Redbox is quite well known on the marketplace now, so customers are quite happy and comfortable renting videos from a Redbox machine.

Other Redbox Information

Small Business Chron – How To Be A Redbox Distributor
Redbox – Redbox Help Centre

Brandon Gaille – Review of the Redbox Franchise Opp and Startup Cost

DVD Rental Franchise