Alamo Drafthouse Cinema franchise
2023 filing · April 14, 2023Fewer locationsShares sales figures
Alamo Drafthouse Cinema at a glance
A movie theater showing first-run films with food and drinks served in the theater. At the end of 2022 there were 38 Alamo Drafthouse Cinema locations in the US, 21 franchised and 17 company-owned.
The business
- Franchisor
- Alamo Intermediate II Holdings, LLC
- The company that sells the franchises
- Franchising since
- 2003
- 20 years of selling franchises
- Franchisor based in
- Austin, Texas
- Typical size
- 35,000–45,000 sq ft
What you pay
- Cost to open
- $5.33M–$8.11M
- A new-build venue in a leased building
- Franchise fee
- $125,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of gross sales, paid monthly, plus 0.5% to the marketing fund (up to 1%)
- Brand fund
- 0.5%
- 0.5% of gross sales, paid monthly; it can rise to 1%
- Renewal fee
- See terms
- 50% of then current initial franchise fee.
- Agreement length
- 10 years
Where it is
- US locations, 2022
- 38
- Franchised and company-owned
- Franchised
- 21
- Company-owned
- 17
- Change in 2 years
- −1
- Franchised locations, 2020–2022
- States
- 9
- Most in Texas, Virginia and New York
From Alamo Intermediate II Holdings, LLC’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Alamo Drafthouse Cinema among all franchises with the same figure.
| Figure | Alamo Drafthouse Cinema | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $6,721,517 | Costs more than 97% of franchises |
| Franchise feePaid once, when you sign | $125,000 | Higher than 99% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 38 | More than 60% of franchises |
How much a Alamo Drafthouse Cinema franchise costs
Opening a new-build venue in a leased building costs an estimated $5,330,166 to $8,112,868. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are furniture & equipment ($3,638,000 to $4,494,000) and site work & building ($537,666 to $1,436,368). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $125,000 | ||
| Design or PIP Fee | $7,500 | ||
| Site Work & Building | $537,666 | $1,436,368 | |
| Furniture & Equipment | $3,638,000 | $4,494,000 | |
| Pre-Opening Marketing and Promotion | $150,000 | $300,000 | |
| Deposits | $100,000 | $150,000 | |
| Initial Inventory | $100,000 | $150,000 | |
| Training | $155,000 | $260,000 | |
| Business Licenses & Permits | $10,000 | $30,000 | |
| Liquor Licenses | $7,000 | $160,000 | |
| Additional Funds | $500,000 | $1,000,000 | |
| Total | $5,330,166 | $8,112,868 | |
Source: Alamo Intermediate II Holdings, LLC, 2023 filing, page 19
Alamo Drafthouse Cinema franchise fee
The franchise fee is $125,000. You pay it when you sign the franchise agreement.
Source: Alamo Intermediate II Holdings, LLC, 2023 filing, page 12
Royalty and ongoing fees
| Royalty | 5% of gross sales, paid monthly, plus 0.5% to the marketing fund (up to 1%). |
|---|---|
| Brand or marketing fund | 0.5% of gross sales, paid monthly; it can rise to 1%. |
| Renewal Fee | 50% of then current initial franchise fee. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Alamo Intermediate II Holdings, LLC, 2023 filing, page 13
Other fees as filed, from page 14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Alamo Drafthouse Cinema publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Alamo Intermediate II Holdings, LLC, 2023 filing, page 57
- Estimate Estimated yearly sales per location
- $2.8M–$5M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Alamo Drafthouse Cinema compares
Of the 168 entertainment franchises on this site, Alamo Drafthouse Cinema is the 165th cheapest to open and the 30th largest by number of locations.
| Figure | Alamo Drafthouse Cinema | Typical entertainment brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $5.33M | $286K | $222K |
| Cost to open, high end | $8.11M | $598K | $477K |
| Franchise fee | $125K | $45K | $40K |
| Royalty | 5% | 6% | 6% |
| Brand fund | 0.5% | 1.3% | 2% |
| US locations | 38 | 8 | 21 |
| Closed or left per year | 6.8% | 4.5% | – |
| Change in franchised locations, 2 yrs | −4.5% | +32.5% | – |
| Shares earnings figures | Yes | 113 of 168 | 2,147 of 3,352 |
Typical is the median across the 168 brands in entertainment franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 22 (0) | 19 | 0 | 0 |
| 2021 | 21 (−1) | 16 | +2 | −3 |
| 2022 | 21 (0) | 17 | – | – |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Alamo Intermediate II Holdings, LLC, 2023 filing, page 70
Where Alamo Drafthouse Cinema locations are
At the end of 2022, Alamo Drafthouse Cinema had locations in 10 states and territories. The most are in Texas, Virginia and New York.
- Texas18
- Virginia5
- New York4
- Colorado3
- California2
- Missouri2
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Texas | 11 | 7 | 18 |
| Virginia | 5 | 0 | 5 |
| New York | 0 | 4 | 4 |
| Colorado | 0 | 3 | 3 |
| California | 0 | 2 | 2 |
| Missouri | 2 | 0 | 2 |
| District of Columbia | 1 | 0 | 1 |
| Minnesota | 1 | 0 | 1 |
| Nebraska | 1 | 0 | 1 |
| North Carolina | 0 | 1 | 1 |
Source: Alamo Intermediate II Holdings, LLC, 2023 filing, page 71
Who owns Alamo Drafthouse Cinema?
Alamo Drafthouse Cinema franchises are sold by Alamo Intermediate II Holdings, LLC.
From Alamo Intermediate II Holdings, LLC’s 2023 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | The franchisor's predecessor and some of its affiliates filed for Chapter 11 bankruptcy in March 2021 during the pandemic; their business was sold to the current owners in May 2021. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Alamo Intermediate II Holdings, LLC, 2023 filing, litigation on page 12, bankruptcy on page 12
Alamo Drafthouse Cinema filings
The figures on this page come from Alamo Intermediate II Holdings, LLC’s 2023 filing, issued April 14, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | April 14, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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