Franchise FAQs
What is a POD hotel? Why is it relevant in India?
POD hotel is also known as capsule hotel and has PODs and POD rooms. They save space and a 25 room hotel can be made in just 3000 sqft area. It has next generation interiors and require only 1Cr capital to be built. In India it is relevant in all Commericial hubs where property cost has sky rocketed as in limited area a full fledged hotel gets operational in 3 Months.
Why is NAPTAPGO looking at franchises?
NAPTAPGO plans to scale to high number of cities across India. To expand to future cities NAPTAPGO is inviting franchises to invest in any of the current and future properties. It is a win win situation as company gets capital to scale to a location and franchise becomes owner of that location. Franchise starts getting returns and becomes proud owner of a Hotel operated by NAPTAPGO
How much is the return to franchise on invested amount? If revenue is zero will my return become zero?
On rev share 25-30% return is estimated. Return does not get to zero if no revenue after 4 months as MG pitches in.
What is MG? Will I get both MG and Revenue sharing as franchise returns?
MG is minimum guarantee. Returns to franchise are higher of the two i.e. MG or Rev Share.
What is franchise payback timeline?
Franchise payback timeline is 36 months.
How much is the contract period with franchise?
Company gets into contract for 15 Years.
What Are The Key Risks To Achieve Projected Revenue Ramp-Up? Will returns get delayed?
Delay in project completion can be the reason. Post 4 months of signing MG starts so no risk to the franchise.
Has NAPTAPGO raised external funding?
NAPTAPGO has raised angel round and Pre Series A round. It also has raised investment from Govt. of India PSU Balmer Lawrie. Balmer Lawrie handles Govt. of India travel bookings and hence is a strategic investment for NAPTAPGO.
Will NAPTAPGO do a co investment?
On few early properties NAPTAPGO is infusing partial funds.
Can Franchise do a partial investment?
Yes, We have a partial investment model where franchise can invest starting INR 25L
Which cities company wants to expand?
NAPTAPGO has 4 verticals namely Transit, Business city, religious and medical. Company has plan to open 40 franchise in next 3 years in cities under these verticals.
As a franchise will I have to be involved in operations of hotel?
NAPTAPGO is following a FOCO model. This means company will operate the hotel and franchise does not have to be present in the hotel for operations.
Will franchise has to pay the operational expenses like rent, Electricity, Salary etc after initial investment?
NAPTAPGO is following a FOCO model i.e. franchise owned and company operated. This means company will bear the monthly expenses of the hotel and will operate the hotel.
What is main role of franchise as a NAPTAPGO franchise?
As a NAPTAPGO franchise you invest for a location of your choice where NAPTAPGO has plan to launch the hotel. You start getting annual returns on the amount invested.
Why should I not open a hotel under my own brand name rather than becoming a franchise of NAPTAPGO?
NAPTAPGO has a in-house marketing engine and 65% bookings come through its own platform. It has ready tie-ups with all online travel platforms to promote and manage the many city properties. It has developed technology of hourly and flexible stays which is not available outside. NAPTAPGO has know how to make the POD hotel from designing the trendy hotel to operating it. NAPTAPGO has a propriety technology to monitor cleanliness through AI and save multiple overheads thus increasing the revenue and hence franchise returns. NapTapGo operates the hotel hence taking away the headache of operations.
What is current occupancy of NAPTAPGO hotels?
90%
What is the repeat ratio of guests in NAPTAPGO hotels?
48%
I have own property can I still become franchise of NAPTAPGO?
Yes if you have a Commericial property and ready to invest you can become a NAPTAPGO franchise. We will build and operate the hotel and you get rent and returns on money invested. You can fill the partner / franchise form on website to get in touch with us.
Does NAPTAPGO has hotel running experience?
NAPTAPGO founders have hospitality experience with Taj, Jaypee and other hospitality and QSR chains. They have a team trained to run the multiple hotels at scale.
I am a foreign national can I become a franchise of NAPTAPGO? Will my returns be higher?
Yes foreign nationals can become franchise. NAPTAPGO will advise you of the compliances involved. Returns are similar for all franchises. You can fill the partner / franchise form on website to get in touch with us.