How a Turnkey Franchise Sets You Up for Success

When thinking about getting into business ownership, an attractive option can be to purchase a turnkey operation. This means that you purchase a fully functioning business, ready to start with a simple turn of the key to open the door. Most often, a turnkey business is considered an existing business, but that isn't always the case. A new franchise can also be a turnkey business when the franchisor does all the foundational work for you as part of your franchise agreement.

Purchasing a turnkey franchise

Franchise Consulting Company works with franchisees and franchisors to match future business owners to franchise opportunities that work for both parties. Often, franchisees are looking for a turnkey operation. This can be accomplished in one of two ways: either by buying an existing franchise or by investing in a brand that prepares a new franchise for full operation from day one.

The goal, at the end of the day, is to make the decision that best suits the lifestyle you want to live and the type of business owner you want to be. Our job is to help you navigate the options.

Match an existing franchise

Purchasing an existing franchise is much like purchasing an existing business of any kind. The current owner sells to you on a Friday and you open the door on Monday morning as the new owner, with no interruption to the business operations. The existing location has staff and an established clientele and follows the franchisor's model for the business.

Finding a match with an existing franchise becomes a challenge if you don't want to move to where the franchise is located, or if you bring certain skills to the business that may not complement the current staffing situation. This is not unusual, but when it happens, opening a new turnkey franchise can be the solution.

New location franchise

When working with a franchisor to start a new turnkey operation, here are some of the additional items the franchisor will look after as part of the agreement:

• Location. For an existing building, the franchisor will typically advise you on securing the location if it meets their criteria. Renovations are sometimes managed by the franchisor and sometimes by the franchisee. It’s important that your franchise agreement stipulates who will secure contractors and manage any pre-opening construction or remodeling project from start to finish.

• Inventory and operations. Your startup costs should cover all required inventory and ensure all operational programs and procedures are in place. The franchise agreement should stipulate what level of involvement the franchisor will have in helping you hire and train new staff and even planning the grand opening of the location.

There’s usually an additional fee incurred for a franchisor for a turnkey operation, but it can be well worth not having to be part of the startup phase. In addition, the franchisor can have well-negotiated crews and rates that you as an individual may not be able to match. You also eliminate the stress of the startup phase and you know the build or renovation will be consistent with the franchisor's requirements when they are managing the project.

Turnkey franchise opportunities allows for flexible ownership

A final consideration is that an operationally ready franchise can suit a variety of ownership pursuits.

If it’s your first franchise, it can be the easiest entry into the business that allows you to start contributing to your bottom line immediately. If you’re looking at a semi-absentee ownership option, having the business entirely established for operation can keep you in the role you prefer. Finally, if you have a goal of multi-unit ownership, being able to focus on managing units versus establishing them can be a more efficient use of how you want to spend your time.

How FCC can help

Making a decision on a turkey franchise involves an evaluation of many aspects of your life: where you want to live, how hands-on in the business you choose to be and the capital commitment you wish to make. With more than 3,000 registered franchise companies in the marketplace, it can be helpful to have some inside industry help in matching with the right opportunity.

Franchise Consulting Company is in a unique position to work with both franchisees and franchisors to help make good matches. For both parties, a good match saves time and money. Franchisors attract the right kind of person to work with, while the franchisee has a good experience that supports the lifestyle they want to live. Our franchise resources can be tremendous assets to your franchise search.