Introduction to the Redbox Franchise and Tips on How to Own a RedBox
Many people are enticed to look for ways on how to own a RedBox because of its innovative way of renting DVDs, Blu-Ray discs, and even video games through the use of automated retail kiosks. The automated retail kiosk of RedBox is quite recognizable because of its unique design painted in red. RedBox also provided convenience in renting DVDs since the said kiosks are strategically located in areas where human traffic is heavy, such as the following:
- Grocery stores
- Convenience stores
- Fast food chains
Innovation of RedBox in DVD Rentals
Persons who seek ways on how to own a RedBox should look into Coinstar, which had proven itself to be capable of making DVD rentals a profitable endeavor. The success of RedBox is quite evident by simply looking at the increase in the number of kiosks that are scattered all over the country. Not only is the success of RedBox measurable by the number of its kiosks, but likewise by the increase in the number of people using the kiosks to rent and borrow DVDs. Previously, the manner of watching movies is limited to going to few ways, such as going to movie houses, downloading films on the internet, and going to local video shops to borrow DVDs. What RedBox did was to increase the options of people in borrowing DVDs by making the kiosks accessible to more people. In fact, RedBox presently allows individuals to become investors to help expand the business by teaching them how to own a RedBox.
Convenience of the Kiosks
Investors will surely show interest on how to own a RedBox when they see how successful RedBox in its line of business. Redbox combined accessibility, practicality and convenience in the operation of its kiosks. The kiosk is very easy to use because it employs interactive touchscreen devices, which people can utilize to browse titles and borrow DVDs. Customers will only need their credit cards to borrow by performing the simple act of swiping the card. The transaction is almost completed at this point. The borrower is only reminded to return the DVD the following day, otherwise, the cost of the same will be charged against the borrower. Finally, the rental fee is so low and affordable that the business is so appealing to a lot of people.
Profitability of the Business
Many people recognize the profitability of the business of RedBox. In fact, some are even asking how to own a RedBox so that they can also profit from the business. Unfortunately, owning a RedBox is not like purchasing some gadget or device and thereafter running the business. The RedBox kiosk is not actually for sale in this manner, but needs to be licensed and issued to a person through the process of franchising. In simple terms, a person needs permission from Coinstar before the latter can own a RedBox and operate the business.
Introduction to Franchising
Franchising is the best answer for people asking how to own a RedBox. However, a person who wants to get a franchise of RedBox must undergo a process as required by Coinstar. The process starts by sending an application to Coinstar, preferably through email. The application must provide important information, such as, personal circumstance of the applicant, proposed location of the kiosk, description of the location, etc. Notably, a person must first conduct a feasibility study of the proposed location of the kiosk. The feasibility study must include, among others, the traffic of people that passes on the location and the viability of the area to produce profits. The said information will be used by Coinstar to determine whether or not to approve the application for franchise.
Meeting with RedBox Representatives
The email inquiry on how to own a RedBox does not necessarily result to the approval of the application. What the email does is to trigger an act on the part of Coinstar to further explore the possibility of franchising the business of RedBox to the applicant. Hence, an application that provides a promising feasibility study will make Coinstar to send a representative to talk to the applicant. A contract signing follows whenever the representative is satisfied that the applicant can run the business and the business will become profitable.
Rules in Operating the Franchise
A franchise requires that the licensee commits to follow the rules and requirements imposed by Coinstar on how to own a RedBox business. A franchise does not authorize the franchisee to run the business in any manner, moreover, when contrary to the standards of Coinstar. In fact, violations of the contract or the rules imposed by the Coinstar may result to the cancellation of the franchise. In this case, the franchisee must closely coordinate with the Coinstar for updates in the business operations.
Installation of the Kiosks
Another indirect manner on how to own a RedBox is by applying for the installation of a kiosk in the place of business of the applicant. This type of application is ideal for business owners who determine that the human traffic in the business place can sustain a profitable operation of a RedBox kiosk. The set-up requires that the ownership of the kiosk and the operation of the kiosk will remain with the Coinstar. The business owner may profit through the payment of rental fees for the use of the space where the kiosk is placed, or a profit sharing in income from DVD rents. The latter case may be provided in the contract, which needs to be executed between the business owner and the Coinstar.
