Bottom line
- Total investment $671K – $1.1M including a $60K franchise fee.
- Average unit revenue of $1.2M/year (median $1.0M).
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 169 loans (below the industry average).
- System contracting at -6.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one redbox+ unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 redbox+ units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.8M
on $9.2M purchase
Total debt
$7.4M
SBA $4.6M + senior + seller note
Overview
About
Redbox+ franchisees operate small retail/kiosk locations or partner locations offering DVD and Blu-ray rentals, video games, and merchandise sales. Day-to-day activities include inventory management, customer service at physical kiosks or retail partnerships, restocking rental inventory, handling transactions, and maintenance of vending/retail equipment.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 28 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Redbox+ operates under a financially distressed franchisor with undisclosed profitability metrics, stagnant unit growth, and ongoing corporate restructuring that threatens support infrastructure and brand viability.
Score breakdown · what drove the 51 / 100 rating
- 01HIGHGoing Concern status indicates financial distress at franchisor level — raises sustainability questions
- 02MEDNet income not disclosed in Item 19 — cannot assess actual franchisee profitability despite $1.15M avg revenue
- 03MINORUnit count stagnant at 253 with unknown growth trajectory — suggests market saturation or underperformance
- 04MINORHigh initial investment ($671K-$1.06M) paired with 6-8% royalties creates thin margin for error
- 05HIGHRedbox parent company (Chicken Soup for the Soul Entertainment) filed for bankruptcy protection in 2024 — existential franchisor risk
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
70 numbers
One-time purchase · CSV download · Validation questions included
FDD download
redbox+ · FDD (2026) PDF