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 franchise FAQs are listed 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.
WHAT IS THE INITIAL INVESTMENT, ESTABLISHMENT COSTS AND ONGOING FEES?
Application fee: $1000.00 plus GST per application. This application fee forms part of the approval process.
Initial franchise fee: $50,000 plus GST. This covers start up training costs provide 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 plus. The cost of a Quest Franchise is calculated based on several factors including number of serviced 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 hotel 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 hotel 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?
Investing in a Quest Franchise is not like buying a job - it's buying into a business and a way of life. We need our Franchisees to be energetic, people-orientated and committed to working within our franchise system network. Owning and running your own business means you need to bring your passion and dedication to the business as well as other qualities:
WHAT IS THE PROCESS TO BECOME A FRANCHISEE?
Our selection process gives both parties the opportunity to fully understand whether the partnership is right for both franchisor and franchisee. This means both parties have the right to terminate the application without reason at any time.
The process involves eight stages and can take up to six months. It includes a series of self-assessment profiles as well as interviews and spending time working within a Quest business.
We make the process so vigorous to ensure the right fit for both parties.
Once they’ve joined the Quest family, new franchisees receive ongoing support during the first year and beyond to ensure they are assisted in all aspects of running the business.
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 significantly since its creation in 1988 and the business model has developed to be a very successful hotel franchise business, this in turn has encouraged and 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?
We've created a business model underpinned by a system upon which every franchisee depends for their success. But it's not a business model that is able to support absentee investors. 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 can achieve an operating return of between 10% - 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.
HOW IMPORTANT IS THE RELATIONSHIP WITH THE LANDLORD IN OWNING A QUEST FRANCHISE BUSINESS?
The landlord is a significant stakeholder in the Quest business model, and it is crucial for Franchisees to maintain a strong relationship with the landlord to ensure business success. Quest franchisees buy into a leasehold business. This means franchisees are investing in much more than the right to display the Quest logo on the door of their business. It means acquiring an asset which provides the right to generate income from the property secured through long-term tenure with the landlord.
Consequently, franchisees hold tenure over a multi-million dollar property without the pressure of raising the capital required to purchase the building. Franchisees are supported by Quest in managing their relationships with the landlords, who enjoy the benefits of a secure and stable investment with a trusted Australian brand as a long-term tenant.
WHAT TRAINING AND SUPPORT WILL I RECEIVE?
For 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.
The widespread recognition - and power - of the Quest brand also underpins the support provided to franchisees through national marketing activity.
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 - the Franchise Relationship Manager (FRM) and the Regional Sales Manager (RSM), plus a team of Business Partners (BPs) can provide specialist advice in certain areas of the business as required.
I'M 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.
WHERE CAN I FIND OUT MORE ABOUT THE FRANCHISING SECTOR IN GENERAL?
For more information about franchising, please visit the Franchise Council of Australia's Website.
* Initial costs and establishment costs may vary depending on a number of factors.
1 For the year ended June 30, 2014, 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 May 2017. Quest reserves its rights to vary any of the conditions or terms contained herein.