A few of our most common questions. Investing in a Quest Apartment Hotel franchise business is a huge decision, and one that will come with a lot of questions. To help, we’ve listed some our most common questions below. If you still have questions (which you probably will), please join us at a local Insight Event, where we can meet and share more about the Quest business model.
WHAT ARE THE INITIAL INVESTMENT COSTS AND ONGOING FEES?
The initial investment for a Quest Apartment Hotel comprises an application fee of $1,500 + GST, an initial franchise fee of $60,000 + GST, and the cost of the Quest franchise business you purchase, which is, on average, $1,500,000 + GST or more.
Once operational, Quest collects a gross sales fee of 8% (gross sales) and a brand fund fee of an additional 1% (gross sales). The fees are paid monthly in arrears.
WILL QUEST FIND THE NEW ACCOMMODATION LOCATIONS AND FIT OUT THE NEW PROPERTY DEVELOPMENT?
Yes, Quest sources each of its new locations and develops each apartment hotel from the ground up. The process involves detailed economic and demographic research and planning in direct partnership with development, planning, and project management specialists.
DO INCOMING QUEST FRANCHISE BUSINESS OWNERS NEED PRIOR EXPERIENCE IN THE ACCOMMODATION INDUSTRY TO OWN A QUEST FRANCHISE BUSINESS?
No, experience in the accommodation industry is not a prerequisite for owning a Quest franchise business. When evaluating a future Quest franchise business owner, we value personality traits (e.g., passion, dedication, discipline), cultural fit, and a commitment to working within the Quest franchise model.
ARE QUEST FRANCHISEES REQUIRED TO OPERATE THEIR QUEST PROPERTY ACTIVELY?
Yes, every Quest franchise business owner must be actively engaged in the day-to-day running of their Quest business.
HOW LONG DOES IT TAKE TO BECOME A QUEST FRANCHISE BUSINESS OWNER?
It takes a minimum of six months from enquiry to settlement (including training) for a new Franchise Business Owner to become operational. Typically, it takes most new Franchise Business Owners six to twelve months to complete the process.
CAN QUEST OFFER NATIONALLY ACCREDITED FINANCING OPTIONS WITH AN AUSTRALIAN FINANCIAL INSTITUTION?
Yes, Quest is accredited by most major Australian banks. The funding levels provided by Quest franchise business owner applicants vary depending on several factors, including the circumstances of the individual applicant/s and the business for sale.
IS IT POSSIBLE TO OWN MORE THAN ONE QUEST FRANCHISE BUSINESS?
Yes, qualified Quest franchise business owners can have an interest in up to three properties. Each qualified Quest franchise business owner can own one property outright, but the second and third properties must be owned in partnership without another qualified Quest franchise business owner.
WHAT ARE THE EXPECTED FINANCIAL RETURNS ON INVESTMENT FROM A QUEST FRANCHISE BUSINESS?
A typical Quest franchise business owner can expect a return of 8 to 20% of turnover. However, overall financial success depends on many factors, including one’s ability and commitment to the business. It is important to reiterate that Quest is not a business for absentee investors, but one that requires a significant financial and ongoing personal investment.
IS THE RELATIONSHIP WITH THE LANDLORD IMPORTANT WHEN OWNING A QUEST FRANCHISE BUSINESS?
Yes, the relationship between the Quest franchise business owner and landlord is essential. Quest will negotiate the initial lease for the incoming franchise business owner and then transfer it to the franchise business owner upon settlement.
One of the major benefits of the Quest business model is that it allows a franchise business owner to hold tenure over a multi-million dollar property without the pressure of raising the capital required to purchase the building. As a franchisor, Quest supports franchise business owners with their landlords, but it is the franchise business owner’s ultimate responsibility to maintain a good-standing relationship with their landlords.
IS THERE TRAINING AND SUPPORT FOR NEW FRANCHISE BUSINESS OWNERS?
Yes, each new Quest franchise business owner is enrolled in our intensive 12-week Foundation Training Program. Once in their business, Quest business owners have a dedicated Franchise Relationship Manager (FRM) and a team of Business Partners (BPs) who provide specialist advice across every aspect of the business as required.
ARE THERE ANY RECOMMENDED RESOURCES OR GUIDES AVAILABLE ABOUT THE FRANCHISING SECTOR IN GENERAL?