Franchising with us

[ci-quote title="You have to trust in something – your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life. "]
Steve Jobs[/ci-quote]
 

[expand title="A Brief History of Franchising"]

Arguably modern franchising started in the USA around the 1850′s when Isaac Singer invented the sewing machine. In order to distribute his machines outside of his geographical area, and also provide training to customers on the use of the machines, Singer began selling licenses to entrepreneurs in different parts of the country.

Many of the best-known brand names in the World use franchising in whole or as part of their operations e.g.
Holiday Inn
Subway
Burger King
Coffee Republic
Harry Ramsden
KFC
McDonalds
Millies
O’Briens
Pizza Hut
Spud u Like
Wendys[/expand]

The reason that every day more and more people invest in franchises is very simple: ‘Franchising works’.

A franchise with Asia Backpackers; offers you the chance to be part of regions fastest growing Hostel franchises. We offer a complete turnkey package to successful applicants.  Whatever your previous experience, we will give you all the training, set-up support and on-going back-up you need to get your business going and make a continued success of it.

If once you have read the content on this web site and you feel that you would like to join a dynamic, thriving network with a flexible business model that is perfectly placed to turn the challenges of a changing marketplace into opportunities, then we should talk. In the first instance please complete the on line application here and we will come straight back to you.

 

Business Model

The Asia BackPackers business model is targeted not exclusively on the younger traveller but all those guests who are looking for a low-cost budgeted accommodation. Good hostel business models are based on high occupancy rates in shared bedrooms, by having more people sharing the relative floor space that would be the norm in traditional hotels the cost per bed is low but the potential total cost of the room is higher. Therefore, a shared bedroom with a higher occupancy rate is more profitable and cost effective than a private room.

 

Franchise Model

We base our Franchise Model in the main on the proven traditional hotel business models with the exception of optimising the bedroom floor space to achieve greater profitability. Asia BackPackers   provide the specialist service, such as Marketing, software development, property sourcing, fitting out the venue, procurement, training and legalities that is why the Franchise Model offered by Asia BackPackers is highly productive in terms of the cost-benefit ratio, learning curves and capital recovery. When you combine our offer and the work ethic of our franchisees we have an almost guaranteed winning formula.

 

Our Franchisees benefit from:

Reducing costs and saving you valuable time by entrusting our team with your sales, commercialization, marketing, advertisement, procurement, promotion and technical support arrears. The key to success in the Asia BackPackers Franchise Offer is the combined expertise that the company provides in Hotel Management, Marketing, Promotion, Internet Technology, Procurement, venue sourcing and fitting out, along with the legal, taxation and employment issues in working and living in Thailand.

Keeping a high occupancy percentage and breaking with seasonality. Our marketing and commercialization team creates on-going promotion and advertisement campaigns using far-reaching communication tools, in addition to forming bonds with the most popular travel agencies in the market, thus increasing low-season occupancy percentages. In hotel management, maintaining high occupancy percentages in low seasons is key to achieving higher than normal returns.

 

Maximising your capital income immediately, as you will prevent extensive learning curves and preparation by entrusting our development team with many of the tasks that are key to the success of your hostel

 

There are in essence 5 x specific Areas

[ci-two_thirds]
[expand title="1. Hotel Management/Training"]

Specific training along with optional on-going training, aimed at helping franchisees to achieve a unique experience for both their guests and employees. Our training course portfolio is always growing, in arrears such as Health and Safety, Catering, Food Safety, Book keeping, First Aid. Our training is developed as the industry changes and at our Franchisees request.

Operation manuals: Asia BackPackers provides operation manuals, which must be complied with by every hostel in the chain, creating a level of quality and standardized work that facilitate the guest’s satisfaction as well as excellent administration and management of each hostel.

Quality control: each hostel in the chain must live up to the service quality standards pre-established by the franchise.

Help in recruiting and training of staff.

Front desk and book keeping systems.
[/expand]

[expand title="2. Procurement"]

Asia BackPackers Procurement. Saving you time and money by providing access to products and services to help you run your hostel. This service can be used to acquire and fit out a new venue, food & beverage stock, laundry services, statutory maintenance services, Insurance, I.T equipment and support, and also the printing of any branded collateral needed for your hostel premises.[/expand]

[expand title="3. Sales & Marketing"]

Generating income by selling alternative products and services. Asia Backpacker hostels commercialize not only accommodation, but a wide range of services. When you join the franchise, you expand your commercial vision to a more extensive realm.  We do not just sell accommodation for travellers, but also trips, tourist packages, tickets to shows, flights, taxi and much, much more.

On line booking and payment receiving facility.

Your hostel will receive bookings from the other members of the Asia BackPackers chain, as well as from other hostels/hotels that are not in the franchise but have partnership agreements with us.

We market the venue through Three on line Channels

The majority of the most popular distribution sites (channels) for Hostels/Hotels e.g. Agoda, Hostelworld, Booking.com.

Through Global Distribution Systems (GDS) these are the reservation systems used by travel agents to book air, hotels and car reservations (approx. 450,000 locations)

Internet Distribution Systems are the on line travel agents, travel Portals, travel search engines/directories e.g. Expedia, Yahoo, TripAdvisor etc.

Local tele marketing to schools, colleges, clubs etc. for large group bookings
Local Tele marketing to travel agents within Thailand
We jointly employ Social Media

Why we use Social Media

  1. Social Media usage is still increasing, and expected to continue to increase through the next decade. Currently, 18% of the time spent on the Internet accounts for usage of social media.
  2. It can be a gateway to new customers. There are a billion people using social media. Think of the potential outreach.
  3. Its ability to strengthen your relationships with existing customers. You can utilize social media in many types of communications between your customers, including customer service, acquiring customer feedback, and marketing new products and offerings.
  4. SEO. Search engines love to spider Twitter, Facebook, and more. By posting relevant tweets/posts with links to your site offerings, it can increase your page rank and drive more traffic to your site.
  5. Customer Service. Not only can you answer customer service issues directly on Twitter or Facebook, which allows you to show how great of service you have to other viewers, but you can monitor discussions about your company across posts. That way, you can address them as you find them and increase customer satisfaction with your company.
  6. Search. A lot of users are now searching directly on Social Media sites bypassing Google and Bing. If you want to be relevant, you need to come up in these searches.
  7. Targeted Marketing. With access to demographics in Facebook, you can target your advertisements to different groups.
  8. Free advertising. It doesn’t cost you to make tweets and posts. Why not take advantage of it?
  9. Eventually, e-commerce will seamlessly be integrated into these social sites allowing you to make direct purchases without leaving them. You might as well start building brand awareness until this happens.
  10. Social media is becoming so prominent in our culture; you need to be on it and connecting with your customers. Ignoring it can cause devastating consequences to your business.

[/expand]

[expand title="4. Legal Matters"]

Ensuring you comply with the Thai legal system and adhering to its labour and tax laws.
[/expand]

[expand title="5. Record keeping"]

On line and live management accounts systems, so as you can view your cash flow
Unique Log in facility so you can receive and communicate news to and from all franchisees and HO.

Your Asia BackPackers Support Team will visit quarterly to assess your progress, evaluating the overall experience and condition of your property, leaving helpful feedback in the form of a solution-based evaluation.
We use an on line system to receive feedback from our guests. We provide summaries of this guest feedback to all of our franchisees, as helpful aid for all areas of your business.

All these factors are designed to bring you a high occupancy percentage that will help you take care of discounts, promotions, advertisement and franchise expenses, as well as increase your gross income.[/expand][/ci-two_thirds][ci-one_third_last]images (6)[/ci-one_third_last]

 

What the Franchise Includes

Asia BackPackers Hostels Franchise is a consultancy service supplemented by management, marketing and advertisement tools that will underpin your hostel administration and management, leading you to achieve higher yields.

 

Franchisees have the following 2 Options

 
[expand title=”Option 1: Location specified by you”]

Stage One.

Once you are in full agreement to proceed the franchise contract is signed:

You have a specific location in mind where you believe an Asia BackPackers venue would flourish.

Our legal team will draw up the contract, which has 5-year validity and is renewable. The contract renewal is free of charge and will be carried out provided that both parties consent to it.

A payment of 100% of the franchise fee is paid (500,000 Baht)

  • A new Thai Ltd Company is formed and you are appointed as a director.
  • A Thai Work permit will be arranged.
  • You can work at any of our existing hostels to gain valuable experience into the day to day running of an Asia BackPackers Hostel and how we like to do things. You will also receive training in the use and maintenance of all the IT tools for management and administration. The period you work in any one location is dependent on you.
  • Delivery of operation manuals.
  • Specific requested training undertaken.

Our business analysis team will conduct market research to assess the investment feasibility of individual venues in locations specified by you; we will provide estimations and projected revenues including estimated capital recovery.

Our specialized team in space optimization will escort you to predetermined venues to outline the potential of the property; they will provide statistical evaluations on the viability in line with the Asia BackPackers Hostels model.

You choose the venue and we provide a full Profit & Loss Forecast along with a detailed Cash Flow Forecast, Works Schedule and Capital Recovery Forecast.

Stage Two

You provide the funds in pre agreed tranches to meet the Working Capital Costs and Rent monies based on the pre agreed cash/works schedule.

  • Building and customization of the new venue is started.
  • Our management and marketing development team will get to work on every IT and marketing aspect.
  • New staff recruitment and training is conducted
  • Our sales team will contact the local hoteliers around the agreed new venue, with the aim to promote your hostel as an alternative to their pricing structure.
  • Our Marketing team will promote the opening day.
  • You take ownership of the venue

[/expand]

[expand title="Option 2: Existing Location"]
We will offer you an existing location presently operated by us, we will provide full details of all costs employed on the build, including the fixtures and fittings, (with the associated warranties) a P&L Forecast, Capital Recovery Forecast and present daily/weekly/monthly running costs plus all our additional research on why we originally purchased the venue. read more

Stage One.

Once you are in full agreement to proceed the franchise contract is signed:

Our legal team will draw up the contract, which has 5-year validity and is renewable. The contract renewal is free of charge and will be carried out provided that both parties consent to it.

A payment of 100% of the franchise fee is paid (500,000 Baht)

  • A new Thai Ltd Company is formed and you are appointed as a director.
  • A Thai Work permit will be arranged.
  • You can work at any of our existing hostels to gain valuable experience into the day to day running of an Asia BackPackers Hostel and how we like to do things. You will also receive training in the use and maintenance of all the IT tools for management and administration. The period you work in any one location is dependent on you.
  • Delivery of operation manuals.
  • Specific requested training undertaken.

Stage Two

Once you have completed your on-site training and any identified additional training, you then pay the remaining monies to meet the agreed selling price.

  • We will promote the new Franchisee hand over
  • We will assist in any new staff training
  • A full hand over is documented incl the details of all fixtures and fittings, their purchase dates, the individual costs, suppliers details and all warranties. A full stock audit is jointly undertaken and agreed and a final account is settled.
  • You take ownership of the venue

[/expand]

 

“Ultimately, what-ever option you choose, your success is our success”

 

[expand title="The following figures are based on our latest venue, a 10 detached Bungalow resort with separate dormitories and a bar/restaurant completion expected Jan 2014 on Koh Chang."]

Franchise fee                                    

Baht 500,000

Rent Deposit    henry ford

Baht 150,000

3 months’ rent                  

Baht 150,000

Company formation & Work Visa  

Baht   60,000

Venue Certificates and Licensing    

Baht    65,000

Estimated Fitting out Costs              

Baht 1,675,000 – 1,950,000

Total required for Franchise            

Baht 2,597,000 – 2,875,000

Note Option 1: With reference to Option 1, the above figures represent what we would be looking to spend to meet our Profit and loss Forecast but are subject to change, as the venue freeholder, the ultimate bed capacity and its initial condition will determine the exact monies required. A daily work schedule including a costs schedule is agreed in advance with the Franchisee before any works are undertaken.[/expand]

[ci-button color="blue" url="http://www.formget.com/app/view/form/SZMP-19258"]Application Form[/ci-button]

Have your say