Are you looking for an opportunity for business ownership that doesn’t require manning a store for hours every day? A variety of DVD kiosk companies are seeking independent owner-operators to expand their arrays of convenient installations. Is owning a DVD kiosk franchise right for you?
What is a DVD Kiosk Franchise?
Automated DVD rental kiosks dispense DVDs, video games and Blu-ray disks to customers who pay for the rental online or at the kiosk. In a DVD kiosk franchise, independent owner-operators place their rental kiosks in prime locations with plenty of foot traffic, keeping a portion of the profits to benefit their individual companies.
Consumers then can purchase their rentals and return the disks at their convenience without any human interaction. This automation allows DVD kiosk franchise owners to charge lower prices than many competitors.
- READ MORE: See our Franchise Guide
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 DVD rental kiosk programs. With more than 1,000 different businesses in the United States led by successful brands including Redbox and Netflix, the DVD rental market is valued at $1 billion.
Why You Should Consider a Franchise of DVD Kiosks
There are plenty of legitimate reasons to start a franchise of DVD rental kiosks. Not only do franchise operators enjoy the satisfaction of owning their own business, but once they have the DVD rental kiosks installed, they don’t need to staff or personally be there to operate them. Other reasons to consider a DVD kiosk franchise include:
- Flexibility – Since kiosks are stand-alone booths, they don’t require the same expensive leases as most brick-and-mortar stores. Plus, kiosks are automated so franchise owners don’t have to hire staff or be personally available to operate them.
- Affordability – Owning and operating a kiosk franchise is less expensive than a storefront. Not only are initial investments less, but franchise owners spend less on property leases and staff.
- Scalability – Once a franchisee installs their first DVD rental kiosk, they easily can expand their business to multiple locations without also needing to further divide their time or hire new staff.
- Ease – Because they are automated, DVD kiosk franchises are less demanding on their owners’ time and resources. Plus, placing the kiosks in high-traffic areas all but guarantees customers without heavy marketing investments.
- Success – It doesn’t require a heavy investment or significant experience to become successful as a DVD rental kiosk franchisee. Success is an option for practically anyone.
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 at successfully starting your own business:
1. DVDNow Kiosks
In DVDNow‘s more traditional DVD franchise opportunity, franchisees purchase 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 customize their experiences.
Entrepreneurs interested in starting a DVDNow kiosk franchise must pay a $20,000 franchise fee 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 in the DVD kiosk market. While it doesn’t offer a traditional franchise business model, entrepreneurs interested in offering inexpensive entertainment can apply to be a Redbox partner. They need to 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 essential, and the company offers unique promotional opportunities for its partners, including kiosk ads and sweepstakes, which help it achieve more than 216 million transactions each year. In fact, Redbox confirms more than 6 billion DVD and Blu-ray rentals since the company launched. Since Redbox isn’t 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 a DVD rental kiosk is a solid business opportunity, but you aren’t sure which franchise is the right 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, then a DVDNow kiosk might be the right fit. If, however, you prefer to place the DVD rental kiosk in your own store to enhance business, then Redbox might be the right choice for you.
When starting any franchise, it’s important to consider the support the parent company offers franchisees. Are you looking for assistance in generating continuous sales, or do you prefer a more independent franchise model?
Another consideration when making any franchise purchase is marketing. Does the parent company offer marketing assistance, and what is the cost? Or, instead, does the business rely on its franchisees to market their own network?
What is the total investment and the franchise fees to start the new franchise business? Are there other requirements, such as a certain net worth? Cost is always an important consideration when starting a franchise in any business niche.
How Much Does It Cost to Open a DVD Rental Kiosk Franchise?
While starting a DVD rental kiosk franchise generally is an affordable business opportunity, it’s not without some cost. Franchisees need at least $20,000 to start a DVDNow kiosk business, for example, and the franchise fee is also $20,000. The total initial investment, however, can reach almost $200,000, depending on the location and number of kiosks.
Is a DVD Rental Machine Franchise Profitable?
It takes little effort to turn a DVD rental kiosk franchise into a successful business. Just placing the kiosk will attract customers seeking the newest DVD release, and since the startup costs are relatively low compared to other franchise models, entrepreneurs who operated DVD rental kiosks can recoup their initial investments and begin turning a profit in no time at all.
More in: Franchise Opportunities