How do you start a RedBox franchise? Let’s explain this franchise opportunity. Redbox is a top and respected rental brand in the United States. This is a comprehensive guide to starting your own RedBox franchise for making money.
The company is owned by Apollo Global Management, LLC a private equity firm based in the United States of America. In this article, we shall be doing a critical analysis of the Redbox franchise opportunity.
Open A RedBox Franchise
Almost everyone has used a Redbox rental machine, and these machines are quite easy to use. If you are planning to start this business, you need to know that this franchiser targets locations with high traffic to place their DVD rental machines.
We shall be covering the most crucial things to consider when thinking to get into this franchise opportunity.
Meanwhile, read Great Business Ideas That Will Thrive.
Redbox with its iconic red splashed boxes, is a self-contained, self-serve movie rental system that could earn you a handsome amount of money. They also have over 50 percent of the DVD rental market.
Franchise Cost, Profit, And Opportunities
The movie rental kiosk business can be very lucrative to start if you are looking for a good opportunity. If a Redbox franchise survived in a crowded area for some time, it would be one of the most profitable franchise opportunities of all time.
RedBox Franchise Startup Costs
By now you have probably noticed the familiar red kiosks that are in almost 50,000 locations in the U.S. Being a big brand, the price of franchise isn’t known but the competitors offers such franchise in $25000. Hence, redbox franchise startup cost would be around $25000-$30000.
The truth is, we won’t know how much a Redbox machine costs to have installed at your place of business until you apply using the steps outlined in the above link.
How does redbox work?
Consumers who wish to rent a movie can reserve online. And simply go to the Redbox location, search the movies that are available to rent it using a credit card. The system work like every other vending machine in the supermarket. But the only difference is that it vends movies and games not manufactured product or edibles.
Business opportunities offer a degree of flexibility that won’t usually be found in the mostly-rigid franchise business model.
You must know that Redbox requires that your current business should serve at least 15,000 purchasers on a weekly basis, or that it should have that number of foot traffic. If you exactly know 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.
If you own a premium retail location with lots of foot traffic then you need to try a Redbox DVD machine. You will need to fill out an application online, and they will analyze your spot to see if there is sufficient earnings potential to position the unit there.
A Redbox kiosk that had been installed a year ago will be most likely to generate over $50,000/year, according to data analytics and research.
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.
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.
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.
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.
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.
Looking for a good franchise opportunity can be a daunting task for entrepreneurs/investors interested in buying into existing franchises.