Frequently asked questions
We understand investing in a Quest franchise business is a big decision, so we’re sure you might have a few questions. Our most common questions are listed in the table below, but if there’s something that still needs answering please get in touch and our Quest consultant will call you back at a time that’s convenient for you.
Talk to a Quest consultant by calling 1800 334 033 orEnquire now
What is the initial investment, establishment costs and ongoing fees?
- Application fee: $1,000.00 plus GST per application.
This application fee forms part of the approval process
- Initial franchise fee: $35,000 plus GST
This covers start up training costs provided by Quest. (Travel and Accommodation not included)
- Stamp duty: May be payable on the documentation. Stamp duty laws vary from State to State so you are encouraged to obtain independent legal advice.
- Total franchise business cost: $750,000 upwards
The cost of a Quest Franchise is calculated based on several factors including number of apartments, tenure, location and existing conditions. Quest is accredited with a number of major Australian Banks who have provided funding of up to 70% of the value of the business2.
- Prepaid expenses: Between $30,000 to $150,000 plus GST (indicative costs). These costs contribute to the purchase of the existing prepaid expenses of the business.
- Additional funds including working capital: To qualify for a Quest Franchise, you must have available working capital available to you, the amount of which will vary depending on size, maturity of business and other factors.
- Gross sales fee: 8% of Gross Sales plus GST (payable monthly in arrears)
- Brand fee: 1% of Gross Sales plus GST (payable monthly in arrears)
Will Quest find the location and fit out the new property developments?
Yes. Quest has developed a well-defined site selection and project management process of new locations, which can involve years of research and planning. This process takes into account both the economic situation of the target location, as well as extensive discussions with our corporate customers forecasting where they need to be now and into the future.
Must Franchisees have prior experience in the accommodation industry?
No. We need franchisees to be energetic, people orientated and committed to working within our franchise system framework. The business skills required to be a successful franchisee can be learned. However, the intangible qualities that drive business success such as passion and dedication cannot.
Does Quest require Franchisees to actively operate the property?
Yes. Whilst it’s true that we’ve created a tried-and-true business model that every franchisee depends on for their success, there’s still an expectation and need that our franchisees will be entrenched in the day –to-day running of the business with an energetic and hands-on approach to business to maximise their local market place.
Another critical element of success lies in the partnership between the Quest business and our franchisees. This ensures that each location is operated by the ‘right’ franchisee – someone prepared to undertake a rigorous assessment process to ensure the partnership will be long-lasting and rewarding for all stakeholders.
What qualities do you need to be a Quest franchisee?
Owning and running your own business means you need to bring your passion and dedication to the business as well as other qualities:
- Previous experience as a successful business owner or manager
- Ability to make a significant financial investment and can manage a capital intensive business
- Commitment to working within the framework of our business format franchise system
- Relationship builder/Dynamic Networker
- Success, Sales & Results-driven
- Energetic and a hands-on approach to business
- Personal accountability for the success of the business
- Effective people management skills
- Ability to drive a high level of guest experience and service
- Not afraid of long hours to make the business a success
Does Quest have national accredited financing options with a financial institution?
Yes. Quest is accredited with a number of major Australian Banks who have provided funding of up to 70% of the value of the business. Funding levels provided by banks may vary depending on a number of factors, including the circumstances of the individual applicant/s.
Can a Franchisee own more than one location?
Yes. Quest franchise network has expanded over the last 25 years and the business model has developed to be a very successful franchise business, this in turn has encouraged & motivated many franchisees within our network to purchase multiple properties. Quest has a clear strategy and policy around Multi Unit Franchising for the group.
How much money can a Franchisee expect to get on their investment?
To become a Quest Franchisee you must be prepared to make a significant investment and commitment to the business, both personally and financially. And whilst a typical Quest Franchisee achieves an operating profit margin of between 12.5% - 20%1 per cent of turnover, the rewards in terms of professional satisfaction and lifestyle are also significant. However, overall success depends on many factors, including your ability and commitment to the business.
What training and support will I receive?
Over 25 years Quest has developed and honed a proven structure and formula to support franchisees in successfully running their businesses. This includes sales and operational support, business advice and the more practical operations manual containing every aspect of operating a Quest franchise business.
We provide an intensive franchise induction program and onsite support program for all new franchisees. The ongoing Franchise support model is provided via two primary support roles - Area Sales Manager (ASM) and Franchise Support Manager (FRM) and a team of Business Partners (BP) who can provide specialist advice in certain areas of the business as required.
Interested in joining the Quest Brand. What do I do next?
Please click on the enquiry link below to lodge your interest with us and we will be in contact within 3 working days to start the franchise selection process.
Talk to a Quest consultant by calling 1800 334 033 orEnquire now
* Initial costs and establishment costs may vary depending on a number of factors.
1 For the year ended June 30, 2011, based on returns provided by 70% of mature businesses. This is an illustrative figure and not a prediction of future performance of any franchisee’s particular business.
2 Funding levels provided by banks may vary depending on a number of factors, including the circumstances of the individual Applicant/s.
Quest requires compliance to its maximum franchise gearing policy of 60% for Greenfield Sites and 70% for Existing Sites.
Note: The information provide is current as at January 2013. Quest reserves its rights to vary any of the conditions or terms contained herein.