Looking for a business ownership opportunity that doesn’t require staffing a store for hours every day? A number of DVD kiosk companies are seeking independent owner-operators to expand their range of convenient installations. Is Owning a DVD Kiosk Franchise Right for You?
What is a DVD Kiosk Franchise?
Automated DVD rental kiosks distribute DVDs, video games and Blu-ray discs to customers who pay for rentals online or at the kiosk. In a DVD kiosk franchise, independent owner-operators place their rental kiosks in prime high-traffic locations and retain a portion of the profits to benefit their individual companies.
Consumers can then purchase rentals and return the disks at their convenience without human interaction. This automation allows DVD kiosk franchise owners to charge lower prices than many competitors.
The DVD Rental Industry in 2022
The DVD, game and video rental industry has undergone many changes in recent years. Once relegated to brick-and-mortar stores where customers could browse physical copies of movies and rent them from a human associate, the video rental market now includes streaming services and many kiosk DVD rental programs. With more than 1,000 different businesses in the US led by successful brands including Redbox and Netflix, the DVD rental market is valued at $1 billion.
Why you should consider a DVD kiosk franchise
There are many legitimate reasons to start a franchise of DVD rental kiosks. Not only do franchise operators enjoy the joy of owning their own business, but once they install the DVD rental kiosks, they don’t need to staff or personally be there to operate them. Other reasons to consider a DVD kiosk franchise include:
- Flexibility – As kiosks are stand-alone stands, they do not require the same expensive leases as most brick-and-mortar stores. In addition, kiosks are automated so that franchise owners do not need to hire employees or be personally available to service them.
- Affordability – Owning and operating a kiosk franchise is less expensive than a store. Not only are the initial investments smaller, but franchise owners spend less on leases and employees.
- Scalability – Once a franchisee has installed their first DVD rental kiosk, they can easily expand their business to multiple locations without also having to split their time or hire new employees.
- Simple – Because they are automated, DVD kiosk franchises require less time and resources for owners. Plus, placing the kiosks in high-traffic areas almost guarantees customers without large marketing investments.
- Success – It does not require a heavy investment or significant experience to be successful as a DVD rental kiosk franchisee. Success is an option for virtually everyone.
Top DVD rental kiosks
Interested in owning a DVD rental kiosk business and looking for the right franchise opportunity? The following popular DVD kiosk companies offer chances to successfully start your own business:
1. DVDNow kiosks
In DVDNow’s more traditional DVD franchise option, franchisees buy and place their own machines. Customers enjoy the selection offered at DVDNow kiosks, as the company regularly updates its library of games and movies. They can even create guest profiles to personalize their experiences.
Entrepreneurs interested in starting a DVDNow kiosk franchise must pay a franchise fee of $20,000 and a net worth of $20,000. They also need liquid capital of about $23,000, and the total investment to open the franchise ranges from about $18,000 to $200,000 .
Redbox is probably the best-known brand on the DVD kiosk market. Although it does not offer a traditional franchise business model, entrepreneurs interested in providing affordable entertainment can apply to become a Redbox partner. They must own and manage their own location to qualify, and the Redbox kiosks are designed to bring more traffic into their venues.
Redbox considers marketing support important, and the company offers unique promotional opportunities for its partners, including kiosk ads and contests, which help it achieve more than 216 million transactions each year. In fact, Redbox verifies more than 6 billion DVD and Blu-ray rentals since the company launched. Since Redbox is not a traditional franchise business, there are no official fees for kiosk operators to get started.
How to choose the best franchise to set up your DVD rental kiosk business
So you’ve decided that a DVD rental kiosk is a solid business opportunity, but you’re not sure which franchise is the best fit? Carefully consider the following factors when making your decision:
What is your ultimate goal for placing a DVD rental kiosk? If you want to take part in a more traditional franchise model and own your own business, a DVDNow kiosk may be the right one for you. If, on the other hand, you prefer to place the DVD rental kiosk in your own store to improve your business, Redbox may be the right choice for you.
When starting a franchise, it is important to consider the support the parent company offers franchisees. Are you looking for help generating ongoing sales, or do you prefer a more independent franchise model?
Another consideration when making a franchise purchase is marketing. Does the parent company offer marketing assistance and at what cost? Or does the business instead rely on the franchisees to market their own network?
What is the total investment and franchise fees to start the new franchise business? Are there other requirements, such as a certain net worth? Cost is always an important factor when starting a franchise in any business niche.
How much does it cost to open a DVD rental kiosk franchise?
Although starting a DVD rental kiosk franchise is generally a reasonable business opportunity, it is not without some costs. For example, franchisees need at least $20,000 to start a DVDNow kiosk business, and the franchise fee is also $20,000. However, the total initial investment can reach nearly $200,000, depending on the location and number of kiosks.
Is a DVD rental machine profitable?
It takes little effort to turn a DVD rental kiosk franchise into a successful business. Just placing the kiosk will attract customers searching for the latest DVD release, and since start-up costs are relatively low compared to other franchise models, DVD rental kiosk entrepreneurs can recoup their initial investment and start making money in no time .
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