Buying a Redbox Franchise – Cost, Fees, Profit

Owning a Redbox Franchise – Requirements, Startup Cost, and Application

How much does a Redbox kiosk cost? What is the average Redbox revenue per kiosk? This article will dwell on the procedures involved in buying a Redbox franchise. I’ll be covering the most important things to consider when buying into this franchise opportunity.

Looking for a good franchise opportunity can be a daunting task for entrepreneurs/investors interested in buying into existing franchises.

About Redbox Franchise

The operations of Redbox are mainly in the DVD Kiosk rental industry, with Redbox being a clear leader, with its signature red kiosks spread across 50,000 locations within the United States. For investors looking for franchise opportunities which allow for flexibility, especially with their time, this franchise is among the very best as it is very easy to run.

All that is needed is to ensure that the machines are loaded and double checked to be working properly, the rest of the operations are automated as the rental services are provided to customers without the need of the franchisee being present all the time.

How much is a Redbox franchise?

  • How much does it cost to open a Redbox?
  • Is Redbox a franchise that is expensive? 
  • What is the average Redbox franchise fee?

The Cost Implications of Buying a Redbox Franchise

As with any other franchise opportunity, there is always a price attached to such a franchise. For the Redbox franchise, the startup cost implications are not available at the moment 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 popularity of the Redbox Business Model

With this franchise already having an advantage over other companies offering similar services, it has a wide user base. Almost everyone has used a Redbox rental machine, and these machines are quite easy to use. This franchisor targets locations with high traffic to place their DVD rental machines. The landowners of these locations are paid rentals for the use of such locations.

The DVDNow franchise, however, is not as large as the Redbox franchise which has over 50,000 red kiosks spread across 50,000 locations. One unique feature of this franchise opportunity is that it requires low overhead costs, and less work as most of the work involved is automated.

Benefitting From the Redbox Business Opportunity

There are opportunities for profits that Redbox presents. At the moment, an average Redbox machine would rake in a gross profit of $13,500, meaning that the amount realized on average per kiosk will be within the region of $3,452. The dwindling revenues realized from the Redbox DVD rental machines point to the change in technology.

Before now, this was the main technology, but with the coming of broadband services and online movie rental technology, this option has witnessed a considerable decline in popularity. Although there are still opportunities of making profits, it is believed that the popularity of this option will continually face a gradual decline.

The Challenges of Ownership of Redbox Franchise

Owning the Redbox franchise DVD rental machines does not automatically mean you would be making tons of profits. First, these machines have to be always loaded with movies. However, the movies loaded into the machine consume space and have a limited number of movies that can be loaded into the machine.

This can create a dilemma to the owner, as the choice of movies to be loaded is solely made by the owner, and due to the nature of the business, those renting these movies are never available to be questionable due to the automated nature operations.

This leads to a lot of guesswork on the preference of movies to be bought and loaded. There is also a risk that DVDs loaded into the rental machine might not be rented out, thus bringing about a loss in revenues as a result of low rental.

Buying a Redbox Machine

With the potentials presented by the Redbox franchise, there has been growing interest and question among many on how to buy the Redbox DVD rental machine.

This, however, this not possible, as you can only contact Redbox and provide details of your location. In most cases, business locations like convenience stores, pharmacy’s among other business outlets with high traffic are the most acceptable to the franchisor.

If your location falls under any of these business outlets with busy traffic, Redbox will examine such a location and if it meets their criteria, the business location or property owner will benefit from revenue through the renting of such space.

Channels of Establishing Contact

There are channels through which contact can be established with Redbox, the website option or through the phone lines. You can either establish contact by dropping a message to the franchisor. Also, questions can be sent to the email address; Redbox sends an application letter for you to fill out.

This application would require personal details such as your name, email address, zip code, an average daily traffic description, and also the description of your business location. The information supplied is to be included on the application form and submitted.

The response from this franchisor is not instant, as it can take several weeks due to the high volume of applications recorded on a daily basis. So patience should be exercised by the applicant.

Vital information such as the volume of sales and the traffic numbers should be kept handy as they would be required during the application procedure for Redbox franchise.

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