Alamo Drafthouse Cinema is a leader in the movie theater industry, celebrated for its innovative blend of cinema and dining. Founded in 1997 by Tim and Karrie League, the first theater was located in a converted parking garage in Austin, Texas.
This inaugural location introduced a novel experience by combining second-run films with a unique food and drink service directly to patrons' seats.
The Alamo Drafthouse quickly gained acclaim for its distinctive programming, which included silent films with live musical accompaniment, food-themed movie nights with matching dinners, and special events with film retrospectives and director talks. This comprehensive approach to cinema played a key role in its expansion.
The franchise began expanding in 2003, with the first location outside Austin opening in Houston, Texas. Today, Alamo Drafthouse has numerous locations across the U.S., known for its strict no-talking and no-texting policy, high-quality food and beverage service, and curated pre-show entertainment.
Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
Alamo Drafthouse Cinemaoffers 3 types of franchises:
We are summarizing below the main costs associated with opening a new build Alamo Drafthouse Cinemas franchised venue.
For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).
KEY FRANCHISE STATS
All you need to know about this franchise
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Below are some of
Alamo Drafthouse Cinema
key competitors in the
Other Food
sector.
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A comprehensive and transparent look at franchising finances. The inclusion of profit margins and disclosure documents offers insights you can’t find elsewhere. Essential for anyone considering a franchise investment.
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The franchisor provides a comprehensive training program for franchisees, including:
Initial Training Before the venue opens, the franchisee's Principal Correspondent, along with all Managers and Assistant Managers, must complete the franchisor's initial training program satisfactorily. This training is conducted by the franchisor or its designee in Austin, Texas, or another specified location if it is the franchisee's first venue. An initial training fee of $5,000 per attendee is payable in advance by the franchisee.
Opening Assistance For the first venue, the franchisor offers opening assistance, deploying 12 to 24 trained representatives. These representatives provide on-site pre-opening and opening training, supervision, and assistance from two weeks before to two weeks after the opening. The franchisee must reimburse the franchisor for all incurred costs, including travel, lodging, meals, and wages for the personnel.
Additional and Remedial Training The Principal Correspondent, Managers, and other designated personnel of the franchisee must attend any additional training programs as required by the franchisor. These programs, which may be operational in nature, are conducted at the headquarters or a certified training venue in Austin, Texas, or another designated location. The frequency, duration, and mandatory nature of this additional training vary, and the franchisor may charge a reasonable fee for participation.
The Alamo Drafthouse franchise does not grant exclusive territories in the traditional sense. Instead, it provides territorial protection by agreeing not to establish or authorize another venue within the immediate vicinity of a franchisee's location.
This vicinity, termed the "Territory," is defined in the franchise agreement and may extend up to a 3-mile radius from the franchisee's venue.
Although this agreement limits direct physical competition from other Alamo Drafthouse venues within the Territory, it does not restrict the franchisor's ability to engage in other forms of sales, such as online or direct marketing, within the same area.
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