Franchise: Frequently Asked Questions

 
Frequently Asked Questions and Answers
Q. How many Blockbuster stores are franchise locations?
A. At present, roughly 18% of the 5,000+ U.S. domestic Blockbuster stores are franchise owned and operated. The remaining stores are owned and operated by Blockbuster Inc.
Q. How much money can I make as a Blockbuster franchisee?
A. Many factors can impact your financial results, consequently, Blockbuster will not speculate on your future earnings, We do, however, include an Earnings Claim in our Uniform Franchise Offering Circular (UFOC). Please consult our UFOC.
Q. How do I obtain a Blockbuster UFOC?
A. A UFOC can be obtained by requesting one either in writing or by phone at: Franchise Development, Blockbuster Inc., 1201 Elm Street, Dallas, Texas 75270, 214.854.4266.
Q. What is the minimum term of the franchise agreement?
A. Ten (10) years.
Q. What will be my initial investment?
A. This can vary greatly based upon differences in store size, inventory, exterior signage needed, etc. The estimated initial investment can range from $219,500 to $714,500. The initial investment could exceed $714,500 if the franchisee pursues ownership of their retail property.
Q. What will be the initial franchise fee?
A. This can range from $4,000 to $20,000 based upon the nature of the specific store (i.e. location and whether it is the conversion of anexisting video rental business.)
Q. What is the ongoing royalty rate?
A. Video rental and sales is a membership driven business that builds over time. Blockbuster has two different royalty schedules, with fees escalating over the first four years. Please consult our UFOC.
Q. Where are franchise locations available?
A. Franchise locations are generally offered throughout the contiguous United States. Not all markets are available for franchising due to existing Development Agreements with existing franchisees and the operation of some markets as Company markets. Market availability can and does change over time. We encourage you to use the Blockbuster Store Locator web page to determine markets in which Blockbuster has not yet opened a store.
Q. Does Blockbuster find my store location for me?
A. It is the responsibility of the franchisee to identify and develop each individual location. Blockbuster does, however, provide demographic and market analysis tools to assist you.
Q. Does Blockbuster build my store for me?
A. Blockbuster does not build franchisee's locations. We do, however, provide interior design and fixture floor plans for our franchisees as part the franchise program. We also provide a list of approved vendors.
Q. Does Blockbuster provide financing?
A. Blockbuster currently provides no financing program for franchising.
Q. Do I have to be actively involved in the daily running of the business?
A. Blockbuster does not require you to manage the day-to-day operation of your location(s). You are required to maintain an active knowledge of your business and employ qualified management personnel.
 


Blockbuster Inc., 1201 Elm
Street, Dallas, Texas
75270, 214.854.3000

Please insert content.

BLOCKBUSTER name, design and related marks are trademarks of Blockbuster Inc. © 2009 Blockbuster Inc. All rights reserved.

Portions of Content Provided by All Movie Guide ®, a trademark of All Media Guide, LLC.© 2009 All Media Guide, LLC.