What is Zostel Franchise Program?

It is a one-of- its-kind initiative by Zostel to help and motivate the ‘free’ and ‘ambitious’ souls, who want to be an entrepreneur and to break free from the shackles of a monotonous life holding them back. Through this programme, Zostel handholds you in starting your own Zostel at a location of your choice.

Why Zostel is running this program?

Because Zostel believes that travel is a form of meditation, a way of knowing yourself deep down – something which has profound effect on the way you think and act in life. Our sole ambition is to make people travel more and to change the way India is travelled. Obviously, being such a humongous task, we can’t do it alone. We want passionate, hard-working people with a similar philosophy to create a strong community of travellers and entrepreneurs, a community that can bring in a revolution.

I don't have a property but I want to open a Zostel?

No problem, most Zostels run on a renting model where the franchisee owner takes properties on long term lease and the franchisee handles the operations of the property on ground with an oversight by the Zostel team on day to day basis.

How much time does it take to start a Zostel?

Depending upon the scope of work and if you adhere to the timelines set by our on-boarding team it takes roughly three to four months from acquisition to final launch.

How much capital does it take to start a Zostel?

On an average it takes somewhere between 20 - 25 lac rupees to start a Zostel franchise depending upon the condition of the property, city and your deal with the owner of the property.

Will Zostel provide any funds to start the franchisee?

No, Zostel won't be providing any funds for starting the franchise. Being the oldest and the biggest hostel chains in the India what we provide is our experience of having started more than 36 Hostels and association with one of India's most recognized travel brands. There are periodic monetary incentives based on your performance in comparison to other Zostels.

Can Zostel take my existing property, manage it and give me rent or share in profits?

No. All Zostel run on Franchisee-Owned Franchisee Operated (FOFO) business model. Under this the franchise owner has to either own/lease a property and then Zostel will help them in setup, sales, marketing, operations etc.

Can I apply with multiple partners on board?

Yes, you can.

How do I choose which location would be best for me to open a Zostel?

The decision of choosing your Zostel city depends upon your confidence and feasibility of finding and running the best property in town. Since only you know your strengths and that is exactly what you need to leverage. You might be from one part of the country and might be hoping to settle/start a business in another end. Nobody is stopping you from doing that. But in that case, your challenges will increase. Knowledge of local language, culture, and local contacts go long way in search of properties and also in managing the business in the long run. It is easier to spread the word on the ground and get brokers to find prospective properties for you or to get good leads through local contacts.
Please visit bit.ly/zostelcities for updates about prospective Zostel cities. This has all the details of the locations where we feel a Zostel is required. Also, we have mentioned the cities where it is ideal to look for a property right now. We have also mentioned along with the names of the cities the number of EDP applicants who are actively looking for a property. So, take your time to decide which location would be best for you and let us know in the form.

What if I want to apply for cities where there is already a Zostel?

We plan to have only one Zostel per city except for few cities which have a high volume of tourists like Goa, Mumbai, Rishikesh, Manali etc. You can visit bit.ly/zostelcities for the list of cities where we are planning to come up.

Can I apply for a Zostel franchise outside India?

Yes, you can.

Can I own multiple Zostel franchise?

Yes, you can.

Is there any franchise fees?

Yes, we charge a one-time franchise fee which is INR 2,00,000 inclusive of taxes. Our commissions and monthly charges initiate only after the property is set and launched. We do not charge you anything until the time the property is up and running.

What are the commissions that Zostel charges?

We charge a variable commission of 18-24% of the accommodation revenue based on operational quality score. We DO NOT charge any commission on Food & Beverage sales or any other ancillary revenue of the property.