UFO Moviez India has launched a franchise brand called Nova Cinemas under its subsidiary Valuable Digital Screens Private Limited. With this asset light initiative, VDSPL aims to recreate the screen growth in non-metro regions across India. Under Nova Cinemas, VDSPL will encourage local entrepreneurs to own and operate Nova branded theatres in various parts of the country.
Contractually, Nova franchisees shall be required to use UFO's service offering thereby providing a dedicated and captive customer base for UFO's digital cinema and advertising business.
The theatres will operate as franchisees of VDSPL. Local entrepreneurs will be primarily responsible to make the requisite investment for setting up of the theatres and will also be responsible for day to day operations of their theaters.
VDSPL will ensure that the theatre is set up at a competitive cost for the franchisees. VDSPL will also grant rights to use the brand Nova Cinemas to the local entrepreneurs for a fee and take end to end responsibility of providing theatrical technologies as well as sourcing of film content.