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Review of the Redbox Franchise Opp and Startup Cost

One of the most exciting franchises to come around in a long time in the movie rental business is Redbox. It’s a simple solution for renting movies! For about $1 a day, customers are able to pick up a new release at their convenience. There’s little risk involved because a credit card is required to facilitate the rental. If the movie isn’t returned, you just charge the maximum amount of rental days and end up with a profit anyway.

It’s not just DVDs that customers will find at a Redbox location either. Each kiosk offers a limited number of Blu-Ray discs for customers to enjoy a movie in HD. There are also games for today’s top gaming platforms for daily rent as well and each has the advantages that the DVDs have for risk, but there are higher levels of rental profits from these items.

A secondary advantage with this franchise opportunity is the fact that a community could need several locations. Some large communities don’t even have a presence with Redbox yet! They can be found in high traffic locations, making it the perfect supplement for your store or a good relationship with a grocery outlet or even a Walmart in your community. With over 50k locations available right now, the ability to return a movie to any location, and online reservations that coordinate with local boxes, this could be a wise investment for you.

How Much Is the Initial Investment?

The first step in the franchising process for Redbox is the application. You’ve got to have a location that can be immediately receptive to the DVD and Blu-Ray kiosk that will be put up. You can have a single or a double machine, but you’ve got to have a high level of traffic that passes by your location on a daily basis. If you don’t have high traffic levels, Redbox won’t consider you for a franchise at all. You’ll need to submit your personal information and detailed information about the location you have.

You’ll need a minimum traffic number of 15k people per week. There are approved locations with lower traffic numbers, but the more detailed your numbers happen to be, the better your chances are of becoming a franchisee.

You’ll need to specifically request a Location Suitability Form directly from Redbox in order to proceed. This comes through your email [or your preferred contact method] and you submit all of the required data. Successful applications tend to have an image of the desired location for the kiosk so the organization has the ability to see what you’ve got. Don’t be afraid to sell yourself and highlight the best parts of your location.

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.

You could start your own company with a similar format if you wish under your own business name, but the brand awareness of Redbox and their market saturation would make that difficult. Nearly 70% of Americans live within 5 minutes of a kiosk at this time.

If I Can’t Franchise, Then Can I Work For Redbox?

Because Redbox owns all of their boxes, they’ll need employees to help keep those kiosks up-to-date with the latest releases and help with fixing a broken-down machine. To that extent, one of the common job openings that you’ll find at Redbox is that of a Field Support Rep I. This job requires merchandising duties in your assigned area and there are light servicing requirements as well. You’ll collect movies from the machine, record rental counts, and keep a daily record of the product that is distributed to each machine. Cleaning of the kiosks is mandatory and you’ll be loading and unloading movies based on what is required every week.

You can also apply for a Field Support Rep II position, which includes troubleshooting and installation duties in addition to a daily review of the reports that the other reps will be sending in. You’ll have to complete a certified training class and perform a number of preventative maintenance functions. This position also replaces the regional manager whenever there is an opening.

Is Working With Redbox Worth the Effort?

If you own a commercial location right now and have good foot traffic coming through your doors, then leasing a space to Redbox could help you generate another form of revenue from the space you already have. Just having a commercial location is not a guarantee that you’ll be awarded a box and a contract, so go through your traffic data to make the best pitch to Redbox possible.

If you’re looking for an employment opportunity, Redbox does offer a fairly independent working environment that could allow you to earn some spare cash. It may not be the most viable full-time position if you’re looking for full-time income, but it could be the fill-in position that you may need to keep the lights on and the water flowing in your home if you find yourself out of work or short on money.

You may not be able to franchise or even become an affiliate of Redbox right now, but circumstances can always change. If there are franchising options available in the future to complement their leasing options, then this would be an exciting investment opportunity. The average kiosk installation costs less than $25k, which means you’d have a very affordable way of adding another line of revenue into your portfolio without the troubles of trying to license movie rights, pay royalties, and all of the other fees and agreements that are required in the entertainment industry.

Do you have a commercial location that has high traffic? Then request your sustainability form today and get the leasing process started.

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