Alamo DraftHouse Cinema Franchise FDD, Profits & Costs (2025)
Alamo Drafthouse Cinema stands out in the film theater sector, offering a distinctive mix of movie-watching and dining.
Established by Tim and Karrie League in 1997, it began in an Austin, Texas, warehouse area, repurposing a former parking structure.
This original venue introduced a novel concept to film enthusiasts: the combination of showing second-run movies with a unique service that delivers food and beverages right to the viewers’ seats, differentiating it from conventional cinemas.
Known for its unique selection of movie offerings, Alamo Drafthouse is celebrated for creating more than just a viewing experience. It hosts a variety of themed events, such as silent film screenings with live music, culinary-themed film nights accompanied by corresponding meals, and exclusive gatherings that include film marathons and discussions with filmmakers.
The chain’s expansion commenced in 2003, with its first establishment outside Austin inaugurating in Houston, Texas. Alamo Drafthouse has since extended its presence to multiple locations across the United States.
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Initial Investment
How much does it cost to start a Alamo Drafthouse franchise? It costs on average between $5,048,000 – $16,113,000 to start a Alamo Drafthouse franchised facility.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount varies based on factors such as the type of theater concept selected, the location, and whether the franchisee decides to lease or purchase the property. Alamo Drafthouse offers 3 types of franchises:
| Type of Alamo Drafthouse Franchised Venue | Initial Investment Range |
|---|---|
| New build where you own the land and building (exclusive of any land purchase or land carrying costs) | $13,330,166 to $16,112,868 |
| New build where you lease the building (exclusive of any land purchase or land carrying costs) | $5,330,166 to $8,112,868 |
| Conversion where you lease the building | $5,048,133 to $8,194,684 |
We are summarizing below the main costs associated with opening a New build Alamo Drafthouse Franchised Venue where you lease the building. For more information on costs required to start a Alamo Drafthouse franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount Range |
|---|---|
| Initial Franchise Fee | $125,000 to $125,000 |
| Design or PIP Fee | $7,500 to $7,500 |
| Carrying Costs | Highly Variable |
| Site Work & Building | $537,666 to $1,436,368 |
| Furniture & Equipment | $3,638,000 to $4,494,000 |
| Pre-Opening Marketing and Promotion | $150,000 to $300,000 |
| Deposits | $100,000 to $150,000 |
| Initial Inventory | $100,000 to $150,000 |
| Training | $155,000 to $260,000 |
| Business Licenses & Permits | $10,000 to $30,000 |
| Liquor Licenses | $7,000 to $160,000 |
| Additional Funds | $500,000 to $1,000,000 |
| Total for a Single Franchise | $5,330,166 to $8,112,868 |
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Alamo Drafthouse Cinema Franchise Disclosure Document
Frequently Asked Questions
How many Alamo Drafthouse locations are there?
As of the latest data, Alamo Drafthouse Cinema operates 41 locations across the United States, with 26 being corporate-owned and 15 franchised.
What is the total investment required to open a Alamo Drafthouse franchise?
The total investment required to open a Alamo Drafthouse franchise ranges from $5,048,000 to $16,113,000.
What are the ongoing fees for a Alamo Drafthouse franchise?
Alamo Drafthouse Cinema franchisees pay a 5% royalty fee and a 1% marketing fee, both calculated monthly based on gross sales.
What are the financial requirements to become a Alamo Drafthouse franchisee?
To qualify as an Alamo Drafthouse Cinema franchisee, you should have a minimum net worth of $10 million and at least $3 million in liquid capital. These financial requirements ensure you have the necessary resources to support the initial investment and ongoing operations of the franchise.
Who owns Alamo Drafthouse?
Alamo Drafthouse franchise is owned by Sony Pictures Entertainment, which acquired the chain in June 2024.
Disclaimer
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