Cinemastore 24 Hour Automated DVD Rental Business For Sale

Business description

Firmly established in over 90 locations around Europe, this 24/7 automated DVD rental concept was introduced into the UK as recently as 2006. As such the business is at the forefront of the technology involved in self service DVD rental.
Similar in concept to lobby cash machine service, this business uses state-of-the-art technology to dispense DVDs from interior vending machines. Access to the store is limited to members who use their membership swipe card to enter the shop. The swipe card also acts as payment topped up by credit or debit card thus enabling cashless renting. Rentals are chosen via a special console – or can be reserved from home for in-store collection. Easy to use, the consoles allow customers to source films by genre, director or other selected criteria. Open day and night, the concept has revolutionised the rental of entertainment products offering total flexibility as to when to choose a DVD. Once a film has been rented it can be returned at any time of the day.
With literally thousands of titles to choose from the franchise owner buys the most appropriate stock from the Franchisor to meet the demands of the local audience – not only in terms of the titles themselves but also the volume of each title to be made available at any one time. Up to date management information – accessible remotely from anywhere in the world, provided by the console enables decisions to be made on stock at a moment’s notice. Franchise income accrues not only from rentals but can also arise from the sale of films that have reached the end of their optimum shelf life reflected by their rental income.
The establishment and growth of the UK and Ireland business has been slow to date due to the wide range of business interests of the current Owner – but has enabled the UK and Ireland shops to fully prove the success of the concept in the UK and for the Italian based ultimate Owners of the business model to focus on instilling quality into every aspect of the operation and developing scalable systems to support the franchise network. In addition to years of testing and development of the business model, the owners have developed thorough and detailed customised training materials for franchise operators and their staff, key materials for franchisee recruitment, a professional corporate web-site, a computer-based marketing materials design system, and a series of other operational systems.

With the home entertainment market significantly boosted from the increasing penetration of DVD players in UK and Ireland homes – to such an extent that the UK market for DVD rental is four times bigger and Ireland twice as large as the next biggest market in the world, this concept is rapidly re-defining this fast growing marketplace. With two outlets already set up – one in the UK and the other in Ireland, an acquirer of this master franchise will be ideally placed to take maximum advantage of this growth.

Property information

Location:

The UK and Ireland operation is currently run, in conjunction with the UK outlet by the owner of the Master Franchise, from very secure premises, ideally located in a prominent position on Battersea Park Road, Battersea, a very affluent suburb of South West London.
The premises are approximately 1000 square feet and were acquired by the current Owner of the Master Franchise. The freehold is available for offers in excess of £335,000 in addition to the Asking Price for the Master franchise. Alternatively the premises are available leasehold, length of term and annual rent to be agreed, or alternatively the whole operation could be re-located.
The second franchise is based in a very central location in Mitchelstown, Co. Cork in Ireland.
Full financial information and membership levels are available subject to the completion of the usual Confidentiality formalities

Other information

Competition / Market:

Whilst there are a small number of self service based competitors operating in this sector, this business opportunity offers a far more sophisticated level of technology as well as unparalleled central support. This market leader also enjoys additional competitive advantages through its buying power and its excellent reputation for quality of delivery and franchisee follow through. This business is in a growth industry within a growth market and can expand as fast as the new buyer can apply resources.

Reasons for selling:

The current Owner is currently involved in a diverse range of business interests and consequently is unable to give this business the full attention and commitment it deserves. As a result the Owner wishes to pass this opportunity to new Owners to build upon the foundations that have already been built and to realize the full potential that undoubtedly exists.

Contact the seller