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Author Topic: How do you buy a movie theater and get into business on your own? Todd Cornwall Film Handler Posts: 91 From: Madison, WI Registered: Feb 2004 posted 11-15-2010 09:42 PM                     I would like to get any information I possibly can from anyone here that has bought their own movie theater. It seems like a huge task, but I'm so tired of not being able to do things the right way, I figured that I would look into doing it MY way. Problem is, I'm not rich. I know a movie theater wouldn't get me rich either, but because of a severe lack of jobs out there, I thought I'd at least look into the possibility. Anyone have any thoughts? Securing financing is my biggest concern, but finding a theater for sale is also a big task. Thanks.  |  IP: Logged Tom Petrov Five Guys Lover Posts: 1121 From: El Paso, TX Registered: Jan 2003 posted 11-16-2010 12:08 AM                    I know three different owners in my area. All independent. One has two theatres with 11 screens One has two theatres with 2 screens One has 20 theatres with (not sure) how many screens. You must have DEEP pockets or wealthy investors and you MUST know what you are doing. All three theatre chains are doing ok, not great but ok. Two of them invested in 3D..one invested in RealD as the other invested in Techicolour 3D. The RealD theatre invested just in time for Avatar and played for a long, long, long while there. The other with Technicolur 3D missed out on Avatar and Alice and Wonderland and they haven't been doing too well with the 3D features as they are not performing well. The RealD theatre would of been out of business IMO without the investment in digital as they play mainly kids (3D) movies. They are sandwiched between and AMC 24 and Cineplex 9 about 8 miles away each way. However, the they do have a second run house that has a LOYAL following...and is one of my favorite places to see a movie. I know one of the theatres gets money loaned to them in exchance for a percentage of the concession stand. This same chain actually pays about $18/per hr for a full time projectionsist and has by far the best film presentation in the city. The last theatre has its own niche and is doing well but does not play much mainstream stuff. Very interesting theatre that is independant, has stadium seating, only does film, no 3D, is in a downtown area and does not play big budget action.  |  IP: Logged Todd Cornwall Film Handler Posts: 91 From: Madison, WI Registered: Feb 2004 posted 11-16-2010 12:18 AM                     quote: Tom Petrov You must have DEEP pockets or wealthy investors I have neither. I am afraid of the dwindling attendance, and that scares me. I'd rather work for someone else and let them take all the risk and meager reward, but I'm not finding that. I didn't think it would be easy, or probably even possible to do this, but I want to look into it and see where investors can be found.  |  IP: Logged Tom Petrov Five Guys Lover Posts: 1121 From: El Paso, TX Registered: Jan 2003 posted 11-16-2010 12:20 AM                    quote: Todd Cornwall I am afraid of the dwindling attendance Thats not an issue IMO. The issue is either having the money for future investment (3D tech) or finding a really good niche. People will come if you have something they want. I know of a theatre in the Greater Toronto Area that screened a Bollywood movie and made $25,000 for the screen over the Diwali weekend.  |  IP: Logged Jeremy Weigel Phenomenal Film Handler Posts: 1062 From: Edmond, OK, USA Registered: Mar 2007 posted 11-16-2010 01:38 AM                     The first thing is to find a theatre building that is up for sale or lease at a reasonable price and that can be re-opened with minimal expenditures. You'll want to check things like condition of any equipment and furnishings (ticketing, concession, booth, HVAC, and auditoriums) left behind. If there are projectors still in place you'll want to find out if parts are still readily available. You'll also need to check into hiring a reputable film booker. Once you've done your homework and have a fairly decent estimate of how much it will take to get open and operate for the first year and a business plan, go to a few different banks to see if any are willing to make you a small business loan. Also check if there are any small business grants that you may qualify for. If you get a pre-approval then form your LLC (varies state-state). There are other resources out there that give good advice on starting your own business. Just do a Google search.  |  IP: Logged Todd Cornwall Film Handler Posts: 91 From: Madison, WI Registered: Feb 2004 posted 11-16-2010 12:08 PM                     OK, so far sounds good.  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 11-16-2010 12:21 PM                        The way I did it was, I kept my day job. That way I could put the majority of the profits from the theatre into improvements. We've done a ton of upgrades and improvements (new seats, digital sound, digital projection, 3D, and lots of random remodelings) over the years. If I was trying to live on the theatre's income, most of that wouldn't have been possible. - Spend money to make money (it works) - Don't sacrifice quality for anything, if at all possible - Don't be afraid to charge industry-standard prices. Your customers will understand if they see you putting money back into the business. If your operation "needs work," let people see that work taking place so your pricing is justified. Lowballing is VERY risky.  |  IP: Logged Todd Cornwall Film Handler Posts: 91 From: Madison, WI Registered: Feb 2004 posted 11-16-2010 01:16 PM                     How did you find your theater? Was it closed or still in operation?  |  IP: Logged Don Furr Jedi Master Film Handler Posts: 509 From: Sun City, Ca USA Registered: Nov 2002 posted 11-16-2010 01:21 PM                     First of all you DON'T want to purchase a old theatre building. There is nothing worse than owning a single purpose slope floor building when the business dries up for good. The only thing you can do is rent it to a church for very little $$. I owned and operated 11 locations during the 90's and NEVER bought the first property. DON'T BUY an old theatre.....period. Lease is the way to go. Don  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 11-16-2010 02:08 PM                        Todd - it was in operation, I had worked there for 3 years prior to buying. Either way you go, just don't listen to naysayers such as: quote: Don Furr when the business dries up for good  |  IP: Logged Todd Cornwall Film Handler Posts: 91 From: Madison, WI Registered: Feb 2004 posted 11-16-2010 07:47 PM                     Well, I found a theater (at least it was one) in a mall. I don't know if it's still in tact, but I did work there quite a few years ago, but they close around 2006. Since it is in the mall, it would be a lease....other than that, I have no info. I put out some feelers and plan on going there tomorrow to see if I can look inside. If the equipment is still all there, I might be in luck.  |  IP: Logged Martin McCaffery Film God Posts: 2481 From: Montgomery, AL Registered: Jun 99 posted 11-16-2010 08:10 PM                        I'll second most of the above advice, and re-emphasize have lots of money to burn. Buying the building is just the first part. Then you have to establish relations with all of the distributors, and decide if you are going to book your own films or hire a booker. You will probably be required to fork over advances until you've been showing for a year or two. They will definitely make you sign over your soul and first born. Establish accounts with concession suppliers. They may want up front money before the first delivery. And don't forget insurance, business licenses and taxes.  |  IP: Logged Bill Enos Film God Posts: 2081 From: Richmond, Virginia, USA Registered: Apr 2000 posted 11-16-2010 09:58 PM                     With the some of the money you plan to spend on this project buy a gun and one bullet, then put the rest in cash into a metal bucket and set it on fire, while it is burning take the gun and shoot yourself in the foot. This way you will be rid of the money and be at the same point you'll be in in 3 to 5 years and without all the aggravation in between. The long term pain in your foot will serve as a reminder. This from a good friend who has owned several small businesses about half of which have been at least moderately successful.  |  IP: Logged Todd Cornwall Film Handler Posts: 91 From: Madison, WI Registered: Feb 2004 posted 11-16-2010 10:09 PM                     Gee Bill, thats beautiful. Thanks for the words of encouragement.  |  IP: Logged Adam Fraser Master Film Handler Posts: 499 From: Houghton Lake, MI, USA Registered: Dec 2001 posted 11-17-2010 12:12 AM                        Honestly, if you don't have at least 1 year of cash on hand beyond the theatre investment, don't buy it. Theatres are very cash intensive. For example in the past 5-7 years here are a few of our normal maintainence costs that had to be paid out of operating profits: Shingles: $14,000 Paint: $11,000 Well and controller: $14,000 480v 3 phase to 240v 3 phase transformer: $3500 Blower fans and controllers for HVAC: $10,000 Property Taxes over past 5 years: $80,000 And the list goes on, once everything is said and done there typically is not as much left as one would think along with the 60-80 hour work weeks. I would lease if you are just getting your feet wet, and buy when the perfect time and opportunity arises.  |  IP: Logged

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