Introduction
PVR stands for Priya Village Roadshow. If we analyze the name, we can say that it draws its heritage from ‘Priya Cinema’ which was a single screen theatre in Delhi and subsequently evolved into one of the largest chain of multiplex cinema’s known for the modern facilities and advanced technology as well as diverse films in one place. Since it came into existence in 1997, PVR Cinemas has been one of the most influential organizations in the movie entertainment business in India as it helped in establishment of quality cinema across the length and breadth of the country.
The growth of the company can be credited to recognition of PVR brand amongst Indians as one of the fastest growing providers of Aa category service in terms of movie theatre in the country. Indicators of growth are the objectives the company has set and the results it has already recorded, for instance, its penetration into other regions of India. This article is aimed at addressing all relevant aspects of the issues arising in getting a PVR Cinemas franchise such as covered investment, operating details, pros and cons, and so on.
PVR Cinemas Franchise Overview | PVR Cinemas Franchise Cost​
Understanding PVR Cinemas Franchise
PVR Cinemas was created in 1997 and through that time has captured a significant part of the Indian entertainment market. As of today PVR operates around 173 theaters in over 70 cities therefore enjoying high market penetration and brand loyalty. The company’s business strategy may include hosting various events apart from film exhibitions as well as providing catering services, advertising, and even establishing a loyalty program for consumers. Such diversification does permit the franchisees to have different sources of income.
PVR Cinemas Franchise – Business Model
Some of the key components of PVR Cinemas franchisee business model include:
- Film Exhibition: Avenues for generating revenues through sales of movie tickets still stands as the most fundamental objectives to meet.
- Food and Beverage Sales: Such portions of income other than watching movies and bolero should be as touch to around 40-50 % of avails from snacks & drinks during the film expositions.
- Event Hosting: Corporate events, private screenings, and other gatherings can be hosted by franchisees.
- Advertising Services: For a cinema’s functionality, it is expected of its managers to be able to identify sources of advertising to the stakeholders around the cinema.
Financial Overview
The amount of financial investment needed to start a franchise is quite high – (costs are outlined). Here is a breakdown:
| Cost Component | Estimated Amount (INR) |
|---|---|
| Franchise Fee | 1 crore |
| Estimated Setup Cost | 2 crore |
| Working Capital | 1 crore |
| Total Investment | 5 crore |
| Royalty Fee | 8-10% of monthly gross revenue |
| Franchise Agreement Duration | 5 years |
Space Requirements:
In order to cover the requirements as a PVR franchisee, a commercial area of 5000 to 10000 square feet will be required. Such area is preferable located within tier one or two cities as they have a significant amount of walking traffic. The space should have auditoriums, lobbies, and wet areas including concession stands and toilets.
How to get PVR Cinemas Franchise​?
To understand how to take franchise of PVR cinemas, interested entrepreneurs must first assess their financial capability, as the total investment can range from INR 5 crores to even higher depending on location and setup costs. The following are the conditions that must be satisfied before one applies for the franchise, a minimum of 5000 sq. ft. to 10,000 sq. ft. space should be available along with the necessary papers and permits.
Image Credit: Pexels, cottonbro studio/ PVR Cinemas
Steps to Start a PVR Cinemas Franchise
Step 1: Research and Planning
And before you go forward with the investment:
- Market Analysis: Assess local market conditions & the other players in the market.
- Financial Analysis: Make sure that you have enough funds available without depending on loans.
- Site Analysis: List out possible locations which are in accordance with what PVR needs.
Step 2: Getting In Touch with PVR | PVR Cinemas Franchise contact​
Now that you have done your research, follow the steps below:
- Connect with PVR: Use the given customer service or the official page of the company to get in touch with their franchise department.
- Request Information: Indicate that you intend to become a franchise holder and ask for further information.
Step 3: Making the Required Application Forms
A few of the documents that you will have to prepare in order to fill out the application include:
- You will need to prepare several documents for the application process:
- Provisional NOCs
- Designs approved by relevant authorities
- Provisional License from DM/DC
- New cinema hall construction license
- Film copyright license
- Valid land papers
- Identity proof (Aadhar card, PAN card)
- Address proof (electricity bill)
- Lease/rent property documents
- Passport-sized photographs
Step 4: Sending the Application
All required documents should be attached along with the application which has been filled. PVR will then intend to look into the application and may also resort to background investigations.
Step 5: Financial Obligations
If all looks good:
- Deposit a franchise payment that will be in the vicinity of 1 crore INR.
- Set aside budget for establishing expenses, around 2 crore INR and for working capital of 1 crore INR.
Step 6: Setup and Training
After making the financial commitments:
- Site Development: Go on with the plans and design interiors according to PVR policies.
- Staff Recruitment: Do recruit staff for ticketing, food service, security, maintenance and other relevant areas.
- Training Programs: PVR inculcates understanding of operational standards by asking its staff to attend training sessions.
Step 7: Launching Your Franchise
When everything is ready:
- A soft opening is advisable to ascertain the operational elements for effectiveness.
- A grand opening should be planned to ensure customers are lured in.
PVR Cinemas Franchise: Operational Guidelines
Adapting to the above unique operating model will also involve adapting to some basic operational guidelines that the PVR brand has put in place:
Image Credit: Pexels, Tima Miroshnichenko
Quality Standards
Involvement and enhancing operating standards of customer service and customer comfort. Such as:
- Cleanliness of premises and amenities
- Timeliness and order management on ticket purchasing systems
- Supply of appropriate food and beverages
Marketing Support
PVR has a marketing policy aimed at marketing its brand on its franchisees, which includes:
- Materials useful in branding
- Advertisements
- Promotions of new movies
Royalty Payments
The franchisees can expect consistent profits and are expected to pay a royalty of about 8–10% of gross revenue earned monthly. This fee provides continuous branding and marketing and operational support from PVR.
Benefits of Owning a PVR Franchise
The owning of a PVR franchise has its merits including.
Brand Recognition
The franchise utilizes the PVR logo which is a known entity. Being a well-known company, the PVR has a large clientele. This recognition will enable patronage and client turnover starting the first day of operation.
Diverse Revenue Streams
They can sell food, have events around the premises, and advertise, which means a boost in profits gained through other services other than just a film distribution.
Ongoing Support
PVR helps Franchisees on a continuous basis with marketing plans, operational procedures, and training of the employees.
Challenges of PVR Cinemas Franchisee Operations
The following might be restrictions in the fast face of owning a PVR franchise, even though there are so many good points:
High Initial Investment
There are many potential franchisees that Will be put off by the level of Cost required to set up the business. One has to be adequately funded before going forward.
Market Competition
Competition exists in every field, hence entertainment is not far behind. Franchisees are required to keep creative and going in order to improve service and appeal to the clients.
Day to Day Management Requirements
Multiplexes are required to be managed and run with a lot of precision and operation activities. Understanding the nature of businesses, long working hours in stressful environments can be the reality.
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Conclusion
Opening a PVR Cinemas franchise might be a good option for individuals with the required amount of investment and interest in an entertainment business. Specifically designed for financially strong individuals as this involves huge investments but has promising returns through different sources of revenue, this opportunity is aimed at individuals who want to have an impact in the business of cinema operations.
It is advised that the franchisee thoroughly understand the complex nature of starting a PVR multiplex franchise brand and follow directions which have been mentioned above regarding operational procedures.
Frequently Asked Questions (FAQs)
How does the profit margin of a PVR Cinemas franchise compare to other entertainment franchises?
PVR Cinemas exhibits a healthy profit percentage between 6% and 8%, however, the entertainment industry is a troublesome sector that comes with heavy operational burden and fierce competition which means that some franchises that operate in the area make a paltry 3% and 5% net gain. Thankfully, PVR is in a great position as it enjoys a well known and established brand, combined with selling food and drinks among other things means PVR can make some good money.
What are the main challenges in setting up a PVR Cinemas franchise?
However, the process of acquiring a PVR Cinemas is not so simple as it appears, for starters the owner has to provide 5 crores in combined fees, initial capitals and setup costs. After that franchisees have to seek a proper spot between 5000 and 10000 square feet in prime locations. All of this on top of seeking government permits and learning how to run a cinema, it is quite a bit for a new person to take on.
How does the franchise agreement with PVR Cinemas work?
The initial period for being granted the PVR Cinemas franchise is 5 years, during that time people within the franchise are to follow concrete guidelines set by PVR. Other details like Royalty fees based on revenue among practice details of that operational conduct are also a mandatory requirement and are included in the documents that follow the paperwork.
What kind of support does PVR Cinemas offer to its franchisees?
The assistance from marketing as well as operation is provided at a high level by PVR for each of its franchisees such as staff training programs. Franchisees enjoy the benefits from well-established brand names and recognition, customer loyalty and additionally the support in the day to day managing operations and promotion in order to attract customers to the franchise and improve profitability.
How does PVR support its franchisees in terms of marketing and branding?
PVR broadly supports its franchisees in marketing and branding by employing a marketing mix approach that encompasses advertisement, social media and other promotional activities. They also provide franchisees with a wide range of marketing collaterals such as needed in order for them to engage the market and bring in customers through pushing diverse strategies that meet the local markets where for example the #TheresSomethingAboutPVR campaign is an initiative focusing on the use of influencers to increase brand awareness.
What kind of training does PVR provide to its franchisees?
PVR provides in-depth franchisee training on how to run a cinema including customer care, cash registers, catering services and the engineering aspects of the business. This training also prepares the franchisees and their employees to be capable and competent and later on able to provide the standard cinema service that PVR offers thus moving all branches towards the equalization of the level of service.
Are there any specific locations where PVR is particularly interested in expanding?
PVR has particular interest in penetrating tier 1 and tier 2 cities which are relatively underserved in terms of quality entertainment. The strategy of the company is directed towards areas with higher pedestrian traffic and volume of spendable income of the desired target market enabling them to take advantage of the growing trend of multiplex cinemas in such areas.
How does PVR handle competition from other cinema chains?
It has been emphasized that PVR strategically differentiates its business by competing through technology and services. They differentiate themselves by providing diverse cinema formats including luxury options and by targeting various marketing strategies which make them one of the most sought cinema revenues in the entertainment industry.
How does PVR ensure consistency in the cinema experience across all its locations?
PVR has developed a new regional structure whereby consistency in the cinema experience is maintained through operational rules and quality control procedures designed to encourage uniformity with each PVR location. The provisions of franchisees contracts can stipulate the standards required of the franchisee in cleanliness, customer service and technical operations, which regardless of the geographic location, consistency and customers can expect from the brand image.
