DVD rental franchise opportunity


Franchise facts

Sector:
DVD and Vending franchises
Key info:
No royalty fees, help raising finance, very easy to run
Franchise costs:
Contact franchisor
Potential earnings:
Contact franchisor
DVD rental franchise opportunity

An Original Video DVD rental unit can gross £500 a week and take only 20 minutes a day to run, says Mitchell Leszczyszak, an account manager at the company.

And although not strictly a franchise, this opportunity, which can be operated from home, offers many of the same benefits.

They do not need staff to man them so there are virtually no overheads

Adam Bannister: What distinguishes Original Video’s business package?

Mitchell Leszczyszak: Original Video offers all of the benefits of a franchise without charging the franchise royalty fees usually associated with ongoing business support. As an Original Video machine owner, our clients can expect assistance with every aspect of their business.

From start-up we will assist in finding a suitable location, help to arrange finance and provide a fully operational unit with complete installation. We provide a start-up package that includes DVDs, marketing material and full system training, among other things.

As the system is fully automated, little training is required to be able to get the full repertoire of tools for operating the system.

Account support is also provided, and this encompasses ongoing business development. Account support works alongside the machine owners to assess the performance of their machines, assist in the day to day running, and suggest and submit marketing and PR material to a wide range of local and national publications to increase machine revenue and reach as many new customers as possible.

Marketing is reviewed quarterly by Original Video to assess its effectiveness and provide a foundation to future marketing plans.

Machine owners will receive full, ongoing technical training to ensure they are able to fully operate each software update they receive. These updates, which are free, ensure that the business remains at the forefront of technology.

AB: Can you explain a little bit about the technology?

ML: Our DVD rental machines have an easy to use interface. They do not need staff to man them so there are virtually no overheads.

We always recommend that the machine owner spends some time on site in the first few weeks to promote and introduce the machines to customers, or at least hires someone to do so. But once the business is established, a machine operator can run the business from home, dedicating as little as 20 minutes a day to run their business.

Our machines can provide a supplementary income stream to a variety of businesses – a convenience store or an internet café for example. It can be installed as a standalone unit or a hole-in-the-wall machine – like an ATM –which can dispense DVDs 24 hours a day, seven days a week.

The number of machines they receive depends on the scale of their business, and can vary from a single standalone unit to three units operating as a fully automated DVD rental store.

AB: How much revenue do these machines generate on average?

ML: The amount an Original Video business can make varies depending on the number and nature of units in operation. A standard double unit can expect to gross an average of £500 a week, with an increase in units obviously leading to an increase in revenue.

AB: How strong is your brand?

ML: Our brand is growing rapidly, and has spread from Spain, across Europe, reaching the UK and Ireland in 2005, with the most recent expansion being the opening of a manufacturing plant in Mexico to serve the huge North, South and Central American markets. This growth has seen over 500 Original Video units placed worldwide.

In the UK and Ireland alone Original Video is looking to place its 100th unit by the end of 2007, and is in talks with various multiples [large companies looking to buy multiple units to place] who would help to far exceed this estimation.

AB: Does a buyer of an Original Video machine need any specialised skills?

ML: The ease of operating an Original Video automated DVD vending machine means that the owner does not need any experience of machinery. As the machine is fully automated, the owner simply needs to place their machine, add new films, sit back and enjoy the profits the machine can generate.

 

About The Author

Adam Bannister Writer
Adam Bannister writes for all titles in the Dynamis stable including BusinessesForSale.com, FranchiseSales.com and PropertySales.com as well as other industry publications.