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FAQ

1. What type of qualifications does Apple Hotel seek in a franchise candidate?
A passionate Hotelpreneur with proven leadership skills who is committed to operational excellence and customer service, and who demonstrate a strong willingness to learn and practice the Apple Hotel business model.

2. How do I apply for a Apple Hotel franchise?
We encourage candidates to apply online.

3. How long does the whole application process take?
Usually 10-12 months. There are many variables that could impact this timeframe including the time required to receive construction approvals and permits from local government authorities.

4. Once I meet the criteria, what is the waiting period for a franchise and how do I know what number am I on the list?
We will keep you posted on our website.

5. I do not have much experience doing business or in the hospitality industry, can I apply?
We will provide you with full support along the way including :

  • Site selection
  • Lease review and negotiation
  • Design/Layout and construction
  • Equipment sourcing
  • Training
  • Marketing
  • Grand opening support
  • Ongoing marketing and operational support

6. What type of return can I expect?
You may expect a cash-on-cash return of 8% onwards.

7. How much is the initial franchise fee?
It costs RM80,000

8. Is the initial franchise fee refundable or non-refundable?
It is non-refundable.

9. What does the initial fee purchase?

  • Usage of the Apple Hotel name trademark
  • Advice and directions on the hotel’s design and layout concept
  • Operation manual
  • Start-up operational support
  • Training

10. Is a lump-sum payment required?
No, only 50% of the Franchise fee deposit is required upon signing the letter of undertaking. The remaining 50% balance must be paid before the start of business.

11. Are installment payments allowed?
Installment payments are not allowed.

12. Is franchisee financing available?
Franchisee financing is available.

13. Are periodic royalty payments required and how often must it be paid?
Yes, royalty payment is required on a monthly basis. Monthly 8%

14. Does the franchisor provide free accounting services?
The franchisor will provide accounting services for an additional fee.

15. Is advertising national, regional or local?
The advertising will be worldwide.

16. What type of staff support and what is their respective attachment period during the initial Franchise setup?

  • One management executive & one optional operation personnel will be attached to the initial Franchise setup
  • Duration of attachment will be up to a period of 4 to 12 weeks
  • Salaries, accommodation & travel expenses for the attached personnel are to be borne by the Franchisee

17. Does the Franchisor provide initial training?

  • Yes, training for management and operational staff will be provided by the Franchisor
  • Training will be held at the Franchisor’s designated hotels.
  • Duration of training will be 4 to 8 weeks
  • Accommodation & travel expenses for the trainees are to be borne by the Franchisee

18. What other services does the Franchisor provide?
Full hotel management & operational service for the passive owner.

19. How is the franchise premises obtained?
Franchisor owns most of the premises while others are leased.

20. How much is the rental?
Rental varies from location to location, land size, built up size, number of rooms, etc.

21. What geographic area is encompassed by the franchise?
The Franchise fees stated in Clause 1 does not give the Franchisee exclusive control of a geographic area.
Full territorial control by the Franchisee or Master Franchising License can only be granted upon further Fee adjustment and negotiations between the Franchisor and the Franchisee.
A minimum distance of one kilometre is required between any other franchisee hotels. However, in some case where the area (tourist hot spots) is in demand, the franchise to the additional hotel with be given the first right of refusal to the nearest franchisee.

22. Are other franchises planned for the same geographic area in the future?
Yes, for special areas (tourist hot spots).

23. Who selects the site for the franchise?
The Franchisor.

24. Can the franchisee use his or her own property for the franchise?
The selected Franchise premise must be approved by the Franchisor.

25. If the franchise premises require new construction, who determines the plans and specifications for the building?

  • The Franchisor determines the layout and design of the outlet
  • Once the plans have been approved by all relevant authorities, the Franchisee will have to engage the Franchisor to execute the renovation & fitting out

26. Who supervises the construction and work with the contractor and subcontractors?
The Franchisor project management team.

27. What are the specifications for and restrictions on the appearance and configuration of the premises?
It is subject to approval of the government, local authorities and other related authorities.

28. Who provides property insurance on the premises?
The Franchisor.

29. What are the Franchisee’s responsibilities relating to the maintenance and upkeep of the hotel premise?
The Franchisee’s main responsibility is to keep the hotel environment neat and clean at all times.

30. What are the Franchisee’s responsibilities relating to remodelling?
This is subject to the interior designer, architect and other consultants.

31. What restrictions does the Franchisor place on remodelling?
This is subject to the interior designer, architect and other consultants.

32. Must all equipment and supplies be purchased from the Franchisor? If not, all purchases must be approved by the franchisor?
Yes, all equipment and supplies must be purchased or approved by the Franchisor.

33. How much control does the Franchisor maintain over day-to-day operations?
The Franchisor will have control over the day-to-day fluctuation room rate.

34. What aspects of the business are left to the discretion of the Franchisee?
All other aspects of the day-to-day operations are left to the discretion of the Franchisee.

35. Are hours and days of operation dictated by the Franchisor?
Yes, it is a 24/7 operation.

36. Are room rates, products and services strictly controlled by the Franchisor?
Yes.

37. Must the Franchisee remain personally involved in running the franchise, or can the management duties be delegated?

  • The active Franchisee must be personally involved in the hotel operations.
  • The passive investor may assign or delegate certain aspects of the management duties.

38. Does the Franchisor provide ongoing training?
Yes.

39. Under what conditions may the Franchisor terminate the franchise?
Non-payment of franchise fees by the Franchisee and/or continuous failure to meet the Franchisor’s guidelines after repetitive warnings.

40. What is the franchise agreement period?
5 years and a renewal option for another 5 years.

41. What happens to the Franchisee’s interest if he or she dies?
A transfer is allowed but the new Franchisee must be approved by the Franchisor.

42. Is the Franchise assignable?
Yes, with prior notification and approval from the Franchisor.

43. How long does it take for the franchise to become profitable?
The local franchising law forbids all franchise concepts from answering this question. However, we agree it is a critical question for you to have answered. We invite you to speak with our current franchisees to learn about their sales and profit numbers.

44. Has the Franchisor complied with all applicable state and federal laws and regulations?
Yes.

45. What if I am interested in an international franchise outside of Malaysia?
International franchise is not available at this moment.

46. How long has the company been in business?
Harvest Paradise Sdn Bhd was established in 1997 in Kuala Lumpur, Malaysia. The company has since become the category leader with over 4 company-owned and to-be-franchised units across the country.

Thank you for your interest in Apple Hotel. Apple Hotel is currently accepting applications for new franchisees in Malaysia. Please review the information included on this page to learn more.