The theatre opened in 1912 with an admission price of only five cents. At that time, it was owned by Sidney F. Heath and C. Anderson. Over the years the theatre went through many changes, which included changes to its name. Heath had given the theatre the name of The State Theatre, but when the building was destroyed by fire in 1960 he asked the public to submit suggestions for a new name for the theatre. August J. Schultz and Rose Mershon won free movie passes for submitting the winning suggestion, The Flame Theatre. The City of Wells took over ownership of the theatre in 1996 and formed the Theatre Board. The City immediately invested approximately $65,000 into the facility. Some of the updates that were done at this time included a new projector, seats with cup holders, a bigger screen, and a fresh coat of paint. In 2012 the City also updated the HVAC system and went from reel to digital films, which allows for more film offerings. The theatre currently has a Dolby Digital sound system and 304 seats.The Flame Theatre is one of several services unique to this rural southern Minnesota community.