Red Box Franchise Cost



Franchising is very lucrative since it gives the potential entrepreneur the opportunity of being part of a business that is already established. This is quite beneficial especially when you consider that starting your own business from scratch bears more risks and is normally more involving altogether. Working with a franchise gives you the opportunity of tapping into a ready market with a proven business model. The red box franchise is one such company which deals with renting DVD movies for people for a period of one night only. Many people are opting to go for this franchise mainly because the start-up red box franchise cost is relatively lower when compared to most other franchises. The main reason for the low cost is that this company uses a machine which dispenses the DVD selected once the customers have inserted their credit cards. This means that the number of people who will be required in the day to day running of the franchise will be relatively low hence reduced operational costs. This franchise is also gaining popularity fast due to the fact that there are no contracts between the two parties or late fees which are charged. The normal red box franchise cost for taking a movie is $1 for a night. At the present moment, the number of red box franchise machines in the country amount to 33,300 in total. Statistics also reveal that this company has been able to bring in more than 80% of the revenue acquired by Coin Star Company. The red box franchise cost is quite low because a potential entrepreneur is not charged franchising fees, no liquid capital required, no net worth required, and no multiple locations required. In addition to this, the initial investment that the franchisee will be expected to come up with is normally $125,000. This is relatively fair especially when you consider the amount of revenue that you are probably going to bring in from the investment. According to the estimates released by the company, rental machines which are near portable toilets usually generates approx $574,467 for the company while usage from Roll-off amounts to about $1.6 million. Since the red box franchise cost is quite low, many people can afford it and hence get the opportunity of being part of a successful company. Even though the franchise does not offer financial assistance to franchisees, they provide the opportunity of earning extra cash in an almost effortless way.