Theater Xtreme Plans New Franchise Locations

Theater Xtreme Entertainment Group, a nationwide retailer and installer that specializes in "real movie theaters for the home," has approved a franchise territory in Alpharetta, Ga., for Georgia-based Badkhan Entertainment Group.

Theater Xtreme creates custom home theater systems that primarily center around front-projection systems. While the company will install flat-panel screens as part of its custom services, its CEO Scott Oglum told TWICE that Theater Xtreme does not feature flat panels in its stores; instead it focuses on front-projection technology.

"With so many competitors in the flat-panel area, we saw little margin opportunity. We also didn't feel the retail world needed another A/V retail store. By focusing [on front projection], we have created a brand that is clearly identified with a differentiated solution," said Oglum.

Theater Xtreme said it aims to place stores in areas with homes valued at $300,000 or higher so as to reach a customer demographic with significant buying power. A company spokesperson told TWICE that its average ticket price for a home theater system is around $7,000.

The retailer attempts to create a personal shopping experience for its customers using what Oglum called "engagement selling." The stores feature a variety of showrooms, each fully outfitted with different examples of the types custom packages available. All customers who enter a Theater Xtreme store are each given a personal tour of the rooms by a trained salesperson.

Theater Xtreme has been in business for about four years and currently operates 14 stores in 10 states, five are company-owned and nine are franchises. A company spokesperson said Theater Xtreme plans to open two franchises in the next month � one in Seattle, another in Draper, Utah. The Alpharetta franchise, one of 10 approved franchise territories, is expected to open in December. Oglum said that the company also has "two more corporate stores in the works." In the long term, Oglum told TWICE that the company "sees hundreds of stores in our space." In addition to its plans to add store locations, the company also intends to expand its portfolio of private-label products.

"I don't think you can be a niche retailer today without developing products," said Oglum.

Theater Xtreme's current private-label lines include WideView Screens, ConnecTX Cables, RowOne Furnishings, UniMount and its OneView control system. Oglum said the company hopes to add a private-label speaker line in the future.

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