When starting a video franchise, consider the type of business you want to franchise and the market in your area. Video rental kiosks are becoming more popular, while traditional rental stores struggle against competition from mail rental services and streaming. Consider investing in rental kiosks, which require less initial investment and may be more adaptable to industry changes.
To start a video franchise, you should start by deciding what type of video business you want to franchise and whether there is a good opportunity in your area to open a new location or buy an existing location from someone else. You may be considering opening or purchasing a retail video franchise such as a rental store, or you may prefer to operate one or more video rental kiosks that have become increasingly popular. It may also be helpful to look at the performance of other local video rental businesses. You may also want to consider a different type of franchise opportunity, as video rental stores may not necessarily be a strong investment.
To begin with, you should consider what type of video franchise you want to operate. If you want to start a video rental retail position, you should contact a company that manages those types of positions for specific information and investment details for starting a franchise. You may find it easier to purchase and operate a video rental kiosk, which is a small self-contained device similar to a drink vending machine that allows people to rent movies through an automated system. This may be a better option for you in your area, as many video rental franchises are finding it difficult to maintain business against new forms of competition.
Hollywood Video, the second largest video rental franchise in America, has closed most stores across the country. Movie Gallery Inc., the company that owns Hollywood Video, filed for bankruptcy in February 2010 and had previously begun closing shops in a number of markets. The growing popularity of mail rental services that offer increased selection, home delivery, and the ability to stream programs directly over the Internet to a computer or other device has created a fundamental paradigm shift in the industry. If you want to start a video franchise, you should be looking to make sure you are creating something that can thrive and be successful when the industry changes.
With the emergence of rental kiosks in grocery stores, convenience stores, and other popular locations, you may want to start setting up a video franchise operation with one or more kiosks in your area. The initial investment is often less than what is needed to start or buy a retail outlet franchise, and such an investment may put you in a better position to judge the changing direction of the industry. Several companies offer rental kiosk franchises for sale, and you should contact one of them for more information about the location and financial investment requirements.
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