{"id":5290,"date":"2024-09-19T23:30:26","date_gmt":"2024-09-20T04:30:26","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/how-to-open-a-drive-in-movie-theater.html"},"modified":"2024-10-09T12:35:00","modified_gmt":"2024-10-09T17:35:00","slug":"how-to-open-a-drive-in-movie-theater","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-open-a-drive-in-movie-theater.html","title":{"rendered":"How To Open a Drive-In Movie Theater"},"content":{"rendered":"\n<section data-testid=\"fl-simple-hero\"  class=\"fl-simple-hero\">\n    <div class=\"fl-simple-hero-container fl-container fl-flex fl-items-center\">\n                <div class=\"fl-simple-hero-title\" data-testid=\"fl-simple-hero-title\">How to Open a Drive-In Movie Theater<\/div>\n            <\/div>\n<\/section>\n    <div class=\"fl-container\">\n        <div class=\"updated-breadcrumb-list\">\n            <ol>\n                        <li>\n                <a href=\"https:\/\/www.findlaw.com\">FindLaw <\/a>\n                <span class=\"breadcrumb-separator\" aria-hidden=\"true\">\/<\/span>\n            <\/li>\n                                <li aria-current=\"page\">How To Open a Drive-In Movie Theater<\/li>\n            <\/ol>\n\n        <\/div>\n    <\/div>\n\n\n\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-8f761849 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">How to Open a Drive-In Movie Theater<\/h1>\n\n\n<figure class=\"wp-block-image fl-no-margin\"><img decoding=\"async\" src=\"https://www.findlaw.com/static/c/images\/image\/upload\/ability-law\/wp-prod\/content-hero-images-GettyImages-134454084.jpg\" alt=\"Drive-In Movie\"\/><\/figure>\n\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/natalie-moritz\/\">Natalie Moritz<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a>\n                | Last updated\n        <time>\n                            October 09, 2024\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <p>Drive-in movie theaters are making a resurgence.&nbsp;As more theatergoers seek new and diverse outlets to experience cinema, owning a drive-in theater can be a&nbsp;smart business venture.&nbsp;This article will guide you through the steps of how to start a drive-in movie theater business.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n<p><b><i>Form your LLC with confidence.\u202f<a rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-open-a-drive-in-movie-theater-in-content\" target=\"_blank\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\n\n\n<div class=\"tableOfContent\">\n    <div class=\"table-of-contents\">\n        <span role=\"heading\" aria-level=\"2\" class=\"table-of-contents__title\">13 Steps To Open a Drive-In Movie Theater<\/span>\n                <ul class=\"table-of-contents__list\">\n                        <li><a href=\"#Idea\" title=\"1. Evaluate Your Business Idea\">1. Evaluate Your Business Idea<\/a><\/li>\n                        <li><a href=\"#Plan\" title=\"2. Draft Your Movie Theater Business Plan\">2. Draft Your Movie Theater Business Plan<\/a><\/li>\n                        <li><a href=\"#Legal\" title=\"3. Choose a Legal Structure and Register Your Business\">3. Choose a Legal Structure and Register Your Business<\/a><\/li>\n                        <li><a href=\"#EIN\" title=\"4. Get an Employer Identification Number\">4. Get an Employer Identification Number<\/a><\/li>\n                        <li><a href=\"#Bank\" title=\"5. Open a Business Bank Account\">5. Open a Business Bank Account<\/a><\/li>\n                        <li><a href=\"#Finance\" title=\"6. Get Financing for Your Startup Costs\">6. Get Financing for Your Startup Costs<\/a><\/li>\n                        <li><a href=\"#Location\" title=\"7. Find a Commercial Location for Your Theater\">7. Find a Commercial Location for Your Theater<\/a><\/li>\n                        <li><a href=\"#Permits\" title=\"8. Understand Regulations, Licensing, and Permits\">8. Understand Regulations, Licensing, and Permits<\/a><\/li>\n                        <li><a href=\"#Insurance\" title=\"9. Get Commercial Insurance\">9. Get Commercial Insurance<\/a><\/li>\n                        <li><a href=\"#Distributor\" title=\"10. Secure Your Distributor Deal\">10. Secure Your Distributor Deal<\/a><\/li>\n                        <li><a href=\"#Hire\" title=\"11. Hire Employees and Staff Your Theater\">11. Hire Employees and Staff Your Theater<\/a><\/li>\n                        <li><a href=\"#Market\" title=\"12. Market your Movie Theater\">12. Market your Movie Theater<\/a><\/li>\n                        <li><a href=\"#Open\" title=\"13. Open Your Theater for Business\">13. Open Your Theater for Business<\/a><\/li>\n                    <\/ul>\n            <\/div>\n<\/div>\n\n\n<p>Drive-in theaters are niche markets&nbsp;that provide customers with nostalgic and social experiences unavailable in traditional movie theaters. While they can be profitable, success is not guaranteed. You must carefully research the market and consider all financial and&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/starting-a-business-legal-faqs.html\">legal aspects<\/a>&nbsp;before opening your own&nbsp;drive-in movie theater.&nbsp;<\/p>\n<p>See FindLaw&#8217;s&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness.html\">Small Business Center<\/a>&nbsp;for more information and resources for small business owners.<\/p>\n\n\n<div class=\"general-step-component\">\n    <div class=\"steps-container\">\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            1\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Idea\">Evaluate Your Business Idea<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>First, thoroughly&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/evaluating-your-new-small-business-idea.html\" title=\"Evaluating Your New Small Business Idea\">evaluate your options<\/a>. You may want to contact a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-lawyer-resources\/how-a-lawyer-can-help-your-business.html\" title=\"How a Lawyer Can Help Your Business\">small business attorney<\/a>&nbsp;or financial advisor to assess your long-term business outlook.<\/p>\n<p>Do&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/marketing-research.html\" title=\"Marketing Research\">market research<\/a>&nbsp;to ensure your area can support an outdoor movie business. Also, consider whether you will buy an existing theater or start a brand-new business. If you&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/buying-an-existing-business.html\" title=\"Buying an Existing Business\">buy an existing business<\/a>, thoroughly review financial records and assess the condition of the property and equipment. Consider the costs of any upgrades you&#8217;ll need to do to meet customer expectations.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            2\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Plan\">Draft Your Movie Theater Business Plan<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Your movie theater&#8217;s&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-write-a-business-plan.html\" title=\"How To Write a Business Plan\">business plan<\/a>&nbsp;is like your project&#8217;s script. It conceptualizes your business and stages out the big sequences so you can execute them later. For this step, you should research every aspect of the theater industry.<\/p>\n<p>The most critical questions to address in your&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/before-you-start-your-business-try-starting-a-business-plan.html\" title=\"The Benefits of a Good Business Plan\">business plan<\/a>&nbsp;include:<\/p>\n<ul>\n<li>Where will you open your drive-in movie theater?<\/li>\n<li>How much space will you need for your drive-in movie theater?<\/li>\n<li>What equipment do you need?<\/li>\n<li>What is your pricing strategy for tickets and concessions?<\/li>\n<li>Are you the&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-is-a-sole-proprietor-.html\" title=\"What Is a Sole Proprietor?\">sole proprietor<\/a>&nbsp;or working with other owners?<\/li>\n<li>Which legal&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/types-of-business-structures.html\" title=\"Types of Business Structures\">business entity<\/a>&nbsp;will you elect when you register with a state?<\/li>\n<li>How will you secure&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/start-up-financing.html\" title=\"Start-Up Financing\">financing<\/a>?<\/li>\n<li>Who are your competitors, and is there a market demand for a drive-in movie theater in your area?<\/li>\n<li>What industry trends can you use to set yourself apart from the competition?<\/li>\n<li>What is the&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-names-do-s-and-don-ts.html\" title=\"Business Names: Do&#039;s and Don&#039;ts\">business name<\/a>&nbsp;for your drive-in?<\/li>\n<li>How will you&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/marketing-basics.html\" title=\"Marketing Basics\">market and promote<\/a>&nbsp;your new venture?<\/li>\n<\/ul>\n<p>Once you&#8217;ve finished researching, it&#8217;s time to start drafting your business plan.&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/contents-of-a-written-business-plan.html\" title=\"Contents of a Written Business Plan\">Online templates<\/a>&nbsp;can help.<\/p>\n<p>Your business plan will be the backbone of your business. You will also use it when approaching&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/ten-things-to-think-about-financing-resources.html\" title=\"Ten Ways to Fund Your Business\">lenders and investors<\/a>&nbsp;for financing.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            3\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Legal\">Choose a Legal Structure and Register Your Business<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Next, register your movie theater business with&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/state-guide-corporations-offices.html\" title=\"State Guide: Corporations Offices\">your state&#8217;s business authority<\/a>&nbsp;(usually a Secretary of State). During this process, you should also&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/business-structures-which-one-is-best-for-your-business.html\" title=\"Business Structures: Which One is Best for Your Business\">choose a legal structure<\/a>&nbsp;(or business structure) for your movie theater:<\/p>\n<ul>\n<li>Sole Proprietorship<\/li>\n<li>Partnership<\/li>\n<li>Limited Liability Company (LLC)<\/li>\n<li>Corporation<\/li>\n<\/ul>\n<p>If you don&#8217;t choose a structure, the state will recognize your business by default as a&nbsp;sole proprietorship&nbsp;(if you are the sole owner) or a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/types-of-partnerships.html\" title=\"Types of Partnerships\">general partnership<\/a>&nbsp;(if there are multiple owners). These structures&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-are-the-disadvantages-of-a-sole-proprietorship.html\" title=\"What Are the Disadvantages of a Sole Proprietorship?\">do not protect your personal assets<\/a>&nbsp;from the business&#8217;s debts and liabilities.<\/p>\n<p>Conversely, LLCs and corporations&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-to-expect-business-liability.html\" title=\"What to Expect: Business Liability\">offer liability protection<\/a>. This means your assets are not at risk should someone sue your business.<\/p>\n<p>LLCs&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/llcs.html\" title=\"LLCs\">protect your personal assets and provide useful tax options<\/a>. LLCs can have one owner or multiple owners. These legal entities keep business and personal affairs separate. They also protect your non-business assets in a lawsuit.<\/p>\n<p>Corporations&nbsp;are generally larger ventures that take on many owners and outside investments.&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/corporations.html\" title=\"Corporations\">Corporations<\/a>&nbsp;tend to be more expensive and regulated than LLCs. A business can&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/corporation-versus-llc.html\" title=\"Corporation vs. LLC: What Is Best for Your New Business?\">begin as an LLC<\/a>&nbsp;and change to a corporate structure as it grows.<\/p>\n<p>Business registration is subject to both application fees and renewal fees. Check with your state&#8217;s regulatory business authority to determine specific fees and how to register. A local&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" title=\"Commercial Law Attorneys\" target=\"_blank\" rel=\"noopener\">small business attorney<\/a>&nbsp;can help with this, advising which structure is best for your business.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            4\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"EIN\">Get an Employer Identification Number<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Once you&#8217;ve registered your business with the state, you will need a federal\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/what-is-an-ein-.html\" title=\"What Is an EIN?\">Employer Identification Number<\/a>\u00a0(EIN) from the Internal Revenue Service (IRS). EINs are like Social Security numbers for your business. They identify your business with the IRS so you can pay taxes.<\/p>\n<p>You will also need your EIN to\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/what-to-do-when-you-hire-an-employee-for-the-first-time.html\" title=\"Hiring Your First Employee\">hire employees<\/a>\u00a0and open a bank account. You can get your EIN instantly and at no cost on the\u00a0<a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/apply-for-an-employer-identification-number-ein-online\" title=\"IRS: Apply for an Employer Identification Number (EIN) online\" target=\"_blank\" rel=\"noopener\">IRS website<\/a>.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            5\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Bank\">Open a Business Bank Account<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Your EIN allows you to open a business account. This helps to further separate your personal assets from your\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/business-accounting.html\" title=\"Business Accounting\">business funds<\/a>. Be sure to make all theater transactions through your business bank account.<\/p>\n<p>Consider taking out a business credit card to cover expenses. This also helps build your business credit.<\/p>\n<p>Track all money that goes in and out of the account.\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/the-importance-of-cash-management.html\" title=\"The Importance of Cash Management\">Keen financial records<\/a>\u00a0will help you determine your profit margin to maximize your operations.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            6\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Finance\">Get Financing for Your Startup Costs<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Drive-in movie theaters need a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/operating-budget.html\" title=\"Operating Budget\">large budget<\/a>. Consider the following costs:<\/p>\n<ul>\n<li>A significant amount of open property for your movie screens and customer parking<\/li>\n<li>Projector screens<\/li>\n<li>Ramps in your parking area to ensure all viewers can see the movie screens<\/li>\n<li>High-end projectors that can cast images on your big screens<\/li>\n<li>Restroom facilities<\/li>\n<li>Concessions and cooking equipment like popcorn makers, deep fryers, and soda fountains<\/li>\n<li>Payroll for staff to run projectors, concessions, and parking<\/li>\n<li>An agreement with an FM station to provide audio for your showings<\/li>\n<li>Portable FM transmitter radios for customers to rent<\/li>\n<\/ul>\n<p>Securing equipment for your site will be a significant part\u00a0of your\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/sample-estimate-of-start-up-costs.html\" title=\"Sample Estimate of Start-Up Costs\">startup expenses<\/a>. For example, a new top-of-the-line projector screen can cost up to $150,000.<\/p>\n<p>New drive-in owners can expect to pay upwards of $1 million. But this is where a comprehensive business plan pays off \u2014 a detailed plan that clearly outlines your business&#8217;s potential has a greater chance of success\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/applying-for-a-loan-financial-documents-to-give-your-lender.html\" title=\"Applying for a Loan: Financial Documents to Give Your Lender\">securing funding<\/a>\u00a0from lenders and investors.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            7\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Location\">Find a Commercial Location for Your Theater<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Decide where to locate your theater business. Drive-ins generally need\u00a010-14 acres of flat, open land. The bigger the space, the more vehicles you can fit. You&#8217;ll also need space around the property for barriers.<\/p>\n<p>Consider either buying your own property or\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/how-to-find-commercial-property-to-rent.html\" title=\"How to Find Commercial Property to Rent\">leasing commercial real estate<\/a>. Check the area&#8217;s\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/commercial-zoning.html\" title=\"Commercial Zoning\">zoning regulations<\/a>\u00a0as well.<\/p>\n<p>When\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/commercial-property-search-choosing-the-location-of-your.html\" title=\"Commercial Property Search: Choosing the Location of Your Business\">scouting locations<\/a>\u00a0for drive-ins, look for areas that customers can easily access. But you don&#8217;t want to build a drive-in near a high-traffic area with many other businesses. Those businesses likely have lights that will affect screen brightness and distract from the movie.<\/p>\n<p>Many drive-ins set up shop just outside of large towns. They are close to commerce but far enough away to take advantage of darker, quieter conditions.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            8\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Permits\">Understand Regulations, Licensing, and Permits<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>There are various\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-licenses-and-permits.html\" title=\"Business Licenses and Permits\">business licenses and permits<\/a>\u00a0your theater may need. Most states don&#8217;t require a general business license but review your local business laws and regulations to know for sure.<\/p>\n<p>Concessions are the most lucrative part of your business if you serve the right products. But selling concessions comes with federal regulations governing food sales. The\u00a0<a href=\"https:\/\/www.fda.gov\/\" title=\"U.S. Food and Drug Administration (FDA)\" target=\"_blank\" rel=\"noopener\">U.S. Food and Drug Administration<\/a>\u00a0(FDA) oversees these regulations. There are\u00a0<a href=\"https:\/\/www.fda.gov\/food\/food-labeling-nutrition\/overview-fda-labeling-requirements-restaurants-similar-retail-food-establishments-and-vending\" title=\"FDA: Overview of FDA Labeling Requirements for Restaurants, Similar Retail Food Establishments and Vending Machines\" target=\"_blank\" rel=\"noopener\">several rules<\/a>\u00a0on what food you can serve, how you maintain food quality, and labeling laws.<\/p>\n<p>Alcohol sales also offer potential profit, but they come with more regulations. If your theater sells alcoholic beverages, you need a liquor license.<\/p>\n<p>Your theater must also\u00a0follow\u00a0the\u00a0<a href=\"https:\/\/www.findlaw.com\/civilrights\/discrimination\/the-americans-with-disabilities-act-overview.html\" title=\"The Americans with Disabilities Act - Overview\">Americans with Disabilities Act<\/a>\u00a0(ADA). Your theater&#8217;s parking, restrooms, and other areas must be accessible.<\/p>\n<p>Other legal licenses and permits you may need include:<\/p>\n<ul>\n<li>Sales tax permit<\/li>\n<li>Building permit (if you need to make renovations)<\/li>\n<li>Zoning permit<\/li>\n<\/ul>\n<p>You will likely need a certificate of customer occupancy limits and emergency exit access. Local fire marshals issue these.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            9\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Insurance\">Get Commercial Insurance<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Accidents happen, and&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-business-insurance-.html?fli=latl_biz_howto:diy_biz_ins:txt\">business insurance&nbsp;protects you from potential financial losses<\/a> and unforeseen events. Consider the specific needs of your business and potential liabilities when deciding on&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/do-s-and-don-ts-business-insurance.html\" title=\"Insurance Buying Tips for Small Businesses\">insurance coverage<\/a>.<\/p>\n<p>There are two specific kinds of business insurance you need:<\/p>\n<ul>\n<li>General liability insurance&nbsp;protects you in the event of theft, property damage, and personal injury claims.<\/li>\n<li>Workers&#8217; compensation insurance&nbsp;is likely needed if you hire employees.&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/workers-compensation-overview.html\" title=\"Workers&#039; Compensation Overview\">Workers&#8217; compensation<\/a>&nbsp;protects your business if an employee suffers an injury on the job.<\/li>\n<\/ul>\n<p>Another option is a Business Operations Policy (BOP) that bundles general liability, business interruption, and property insurance.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            10\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Distributor\">Secure Your Distributor Deal<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>You must get a license from a\u00a0<a href=\"https:\/\/filmdistributorsassociation.com\/\" title=\"Film Distributors&#039; Association\" target=\"_blank\" rel=\"noopener\">film distributor<\/a>\u00a0to show the latest movies and new releases. Consider hiring someone with industry experience, like a booking agent. Your booking agent will work with film distributors to bring quality, in-demand content to your drive-in.<\/p>\n<p>A booking agent can also help select new movies and programming that appeal to your\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-determine-the-ideal-target-audience-for-a-business.html\" title=\"How To Determine the Ideal Target Audience for a Business\">target audiences<\/a>\u00a0and attract repeat customers.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            11\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Hire\">Hire Employees and Staff Your Theater<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Besides a booking agent, you&#8217;ll need to\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/frequently-asked-questions-regarding-hiring-laws.html\" title=\"Hiring Laws: Frequently Asked Questions\">hire staff<\/a>\u00a0for the following roles:<\/p>\n<ul>\n<li>Ticket-takers and representatives to work concession stands<\/li>\n<li>Projection specialists to manage the projector<\/li>\n<li>Groundskeepers to maintain the property and clean up after showings<\/li>\n<\/ul>\n<p>You may also need professional support for accounting, marketing, or\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-lawyer-resources\/hiring-a-business-lawyer.html\" title=\"Hiring a Business Lawyer\">legal help<\/a>.<\/p>\n<p>When recruiting potential employees, look for people with a background in customer service or a related field. All your employees should want to provide customers with a positive, memorable movie experience. Use online job platforms, your own social media, and LinkedIn to attract candidates.<\/p>\n<p>Before you hire your first employee, refresh yourself on hiring and employment laws. For example, you can&#8217;t ask\u00a0<a href=\"https:\/\/www.findlaw.com\/employment\/hiring-process\/illegal-job-interview-questions.html\" title=\"Illegal Job Interview Questions\">certain questions in the interview process<\/a>. You also must verify each employee&#8217;s identity and\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations\/e-verify-basics.html\" title=\"E-Verify Basics\">eligibility to work in the United States<\/a>.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            12\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Market\">Market your Movie Theater<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Start generating buzz about your new business before you open. Use the research on your target audience from your business plan to inform your\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/your-marketing-plan.html\" title=\"Your Marketing Plan\">marketing plan<\/a>\u00a0and the strategies you use.<\/p>\n<p>A solid digital strategy can help spread the word about your new business. Consider tactics like:<\/p>\n<ul>\n<li>Creating a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/build-a-business-website.html\" title=\"Make a Website for Your Business\">user-friendly website<\/a><\/li>\n<li>Maintaining a social media presence by posting consistent, engaging content<\/li>\n<li>Using search engine optimization (SEO) strategies like keywords and good metadata<\/li>\n<li>Employing email marketing and text (SMS) marketing<\/li>\n<\/ul>\n<p>Traditional marketing channels are still effective, too. Consider direct mail, generating publicity with local news outlets, and\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/advertising-considerations-for-your-business.html\" title=\"Advertising Considerations for Your Business\">print advertisements<\/a>.<\/p>\n<p>Partner with other local businesses and get involved in your community. Take part\u00a0in neighborhood events to connect with customers and build awareness about your new drive-in.<\/p>\n<p>You could also create a loyalty program for your theater. Reward regular customers with movie discounts, free popcorn, or other perks. Most loyalty programs are entirely digital, so there is no need for a physical card.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            13\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Open\">Open Your Theater for Business<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Now, you&#8217;re ready for your first showtime. Consider a grand opening party or a special event to celebrate your new theater with your customers. Invite local news media, schools, or local celebrities to boost your media coverage.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<h2>Challenges of Drive-In Movie Theaters<\/h2>\n<p>Every type of business has its strengths and disadvantages. But preparing in advance can help you weather any business obstacles better. There are particular challenges you may face as a drive-in theater owner.<\/p>\n<p>When you host new blockbuster movies, you must allot a share of every ticket sale to the studios that produce the movies. Because of this, the&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/tips-for-a-successful-small-business.html\">bulk of profits<\/a>&nbsp;for most theaters is through concession sales. This can be challenging for drive-in theaters where customers are more likely to bring in their own food and drinks.<\/p>\n<p>There are also&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations\/environmental-laws.html\">environmental concerns<\/a>. Depending on the weather, moviegoers may have to run the heat or air conditioning in their vehicles for the evening, which can produce exhaust fumes and noise pollution.<\/p>\n<p>Drive-in theaters also tend to be a more seasonal business. Depending on where you operate, the weather could significantly impact your business operations.<\/p>\n<h2>Need More Help With Your New Business? Speak With an Attorney<\/h2>\n<p>Drive-in movie theaters can be fun, rewarding businesses. But that doesn&#8217;t mean owning and operating one is easy. Opening any business takes extensive planning, grit, and attention to detail. Factor in the laws and regulations that affect your business, and it&#8217;s easy to get overwhelmed.<\/p>\n<p>Some entrepreneurs benefit from getting professional legal help. A&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">small business attorney<\/a>&nbsp;in your area can take on your new drive-in&#8217;s more complicated legal aspects. This can save you legal issues and free up your time and energy to focus on the parts of your business you&#8217;re passionate about.<\/p>\n<p>Or you can let our&nbsp;<a rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-open-a-drive-in-movie-theater-custom-content\" target=\"_blank\">trusted partner LegalZoom<\/a>&nbsp;handle your business formation filing for $99 plus filing fees.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              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id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3423\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"\/>\n                       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for=\"was-this-helpful__radio-button--other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--negative\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                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class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of date<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--negative-other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    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Learn the steps to open your own drive-in theater at FindLaw.<\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":5123,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/ArticleDIYConversionController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":[]},"categories":[2],"tags":[],"state_laws_tags":[],"flmsa":[],"class_list":["post-5290","page","type-page","status-publish","hentry","category-smallbusiness"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/5290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/41135"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=5290"}],"version-history":[{"count":2,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/5290\/revisions"}],"predecessor-version":[{"id":401454,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/5290\/revisions\/401454"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/5123"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=5290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=5290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=5290"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=5290"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=5290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}