The franchise market for video stores can prove lucrative for franchisees, with a range of companies offering opportunities in the sector.
Prospective entrepreneurs looking to move into the film rental franchise business should weigh up their options and thoroughly research the market first.
From large stores to automated systems, there are a range of different variations of franchise available for locations across the country, with most companies providing teams to help franchisees decide on the size, location and inventories of stores.
Many companies provide extensive training and support opportunities for franchisees, offering priceless advice and insider knowledge on issues such as time schedules and staffing to help them maximize the potential of their venture.
By looking around, franchisees can find an opportunity in the video home entertainment market that offers the right combination of brand, support, affordable investment range, training and experience they are seeking.
Video stores operated through a franchise can vary in size and are often custom designed for the chosen location. Computerized rental systems and network support are often provided as part of the franchise agreement.
A franchise contract can offer access to a range of tools, including membership systems, websites, central purchasing deals and discounts, support personnel, training and branding.
Initial support on offer can include help writing a business plan, advice on raising funding, customer profiling information, marketplace knowledge and help with selecting and stocking DVDs and games.
It is important to remember that any investment in a franchise is at risk and, although there are large sums of money to be made, large sums can also be lost if the venture fails to turn a profit.
People who make good franchisees tend to be self-motivated, driven, organized and interested in their chosen market sector. It is not vital to have business experience before opening a franchise, though it is certainly helpful, and franchisees with little or no business expertise should make the most of all training opportunities available to them.
Franchise contracts often stipulate certain standards that must be met, such as customer service, and many require that the business must be sold back to the franchisor after a certain period or under certain conditions. Another pitfall of franchises is that some forbid franchisees from using any suppliers other than those approved by the brand.
People interested in operating a franchise should examine their finances, seek specialized financial and legal advice, and research the company they want to sign up with carefully and know and understand the chosen market.