To start a video franchise you should begin by deciding on what type of video business you wish to open a franchise for, and figure out if there is a good opportunity in your area to either open a new location or purchase an existing location from someone else. You may want to consider opening or purchasing a retail video franchise such as a rental store, or you might prefer to operate one or more video rental kiosks that have become increasingly popular. It can also be helpful to look into how other local video rental businesses are performing. 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, you should consider what sort of video franchise you want to operate. If you want to start a retail location for video rental, then you will need to contact a company that operates those types of locations for specific information and investment details for starting a franchise. You might find it easier to purchase and operate a video rental kiosk, which is a small, self-contained, device similar to a beverage 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 biggest video rental franchise in America, has been closing most of its store locations across the country. Movie Gallery Inc.™, the company that owns Hollywood Video™, filed for bankruptcy in February 2010 and had begun closing stores in numerous markets prior to that. The increasing popularity of mail rental services that offer greater selection, home delivery, and the ability to stream programs directly through the Internet to a computer or other device has created a fundamental paradigm shift within the industry. If you want to start a video franchise, then you should try to ensure that you are creating something that will thrive and be successful as the industry changes.
With the emergence of rental kiosks at grocery stores, shopping outlets, and other popular locations, you may want to look into starting 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 purchase a retail location franchise, and such an investment may place you in a better position to judge the changing direction of the industry. A number of different companies offer rental kiosk franchises for sale, and you should contact one of them for more information on location and financial investment requirements.
