What is a turnkey franchise?

If you’ve ever dreamt of becoming your own boss but want a simpler way to start a business, a turnkey franchise might be the perfect solution.

The term ‘turnkey’ refers to a business model where most of the setup is handled for you. All you have to do is, quite literally, turn the key and start trading.

John Pratt, senior partner at specialist law firm Hamilton Pratt, explains: “The expression ‘turnkey’ means, as the word suggests, that all that the person who receives the benefit of the turnkey proposal has to do is turn the key and start the business.”

In a franchise context, this often includes initial training, supply of stock, software, marketing support and even advice on premises.

However, as Pratt highlights, most franchises are not fully turnkey. “Usually franchisees are required to find their own premises and modify them for use as a franchise.”

The turnkey model is more common for van franchises, where you get a branded van and initial stock. However, some premises-based franchises, like quick-service restaurants, also use this approach.

How does a turnkey franchise work?

A turnkey franchise eliminates many of the challenges that new business owners typically face.

In a premises-based franchise, the franchisor may handle the entire process of finding and fitting out a location. This means the franchisee can focus on learning the business.

Brian Duckett, former chairman of The Franchising Centre, explains that the process typically happens while the franchisee undergoes training. By the time they complete it, they get the keys and are ready to operate.

However, Duckett notes that fully turnkey franchises are not the norm. More often, franchisees need to find their own premises based on franchisor guidelines. They then need to manage and pay for the conversion and fit-out themselves.

What are the advantages of a turnkey franchise?

For many aspiring entrepreneurs, a turnkey franchise offers a fast-track to business ownership with fewer risks. Here are some of the key advantages:

1. A ready-to-go business

A major benefit of turnkey franchises is that they eliminate much of the legwork involved in starting a business from scratch. This can be particularly beneficial if you lack experience in business operations, as the franchisor handles many aspects, from location scouting to store design, for you.

2. Faster launch time

Because the franchisor takes care of many of the setup tasks, a turnkey franchise typically allows you to start trading much faster.

In industries such as fast food, where speed to market is crucial, this can be a significant advantage.

Anthony Round, franchise director of Burger & Sauce, explains: “In a turnkey fast food franchise, the franchisor provides all the assistance needed to open. This includes store location, legal work – including gaining or ensuring the correct planning permission is in place – unit design and, crucially, the fit-out. Franchisees are literally given the keys to the unit which is ready to go.”

3. Reduced stress and risk

Setting up a business can be overwhelming. This is particularly the case when it comes to finding contractors, dealing with planning permissions and ensuring compliance with regulations.

Round points out that a turnkey franchise helps remove these hurdles: “If you’ve ever watched a property refurbishment programme on the TV, you will know how stressful things can get. Without experienced support and a dedicated project manager, work can easily go over budget and the timeline stretched beyond what can be reasonably expected.”

Having the franchisor take care of all these aspects is a huge benefit for franchisees.

4. Access to expert support and buying power

Franchisors have established relationships with suppliers, property agents and contractors, which means franchisees benefit from these connections.

As Round notes, “Burger & Sauce uses a specialist property agent to help proactively locate the best units, in prime locations, often before they are advertised on the open market.”

This can give franchisees a competitive advantage, particularly in high-demand sectors like fast food.

5. More time to focus on running the business

Because the setup is largely taken care of, franchisees can focus on what really matters. This includes training staff, marketing and delivering excellent customer service.

Round emphasises, “Being simply ‘given the keys’ to a new unit means [you] can then focus on the day-to-day running without getting bogged down in admin even before [you’ve] even launched.”

Are turnkey franchises more expensive?

Since the franchisor does a lot of the groundwork, turnkey franchises often come with an additional management fee.

Brian Duckett explains, “The franchisor will charge a fee, on top of all the other upfront and training fees, for managing the ‘turnkey’ process.”

However, while the upfront cost might be higher, many franchisees see this as an investment in reducing risks and speeding up profitability.

Without the franchisor’s expertise, finding the right premises, securing planning permissions and managing contractors could end up costing more in the long run.

Is a turnkey franchise right for you?

A turnkey franchise can be a great choice for individuals who:

● Want a business that is ready to operate with minimal hassle

● Prefer a structured, guided approach to launching a franchise

● Are willing to pay extra for expert support and a faster setup

However, if you’re an experienced entrepreneur who prefers full control over site selection, fit-out, and other setup details, a traditional franchise model where you handle more of the groundwork might be a better fit.

Where can I find turnkey franchises for sale?

Many of the franchise opportunities listed on What Franchise offer turnkey solutions, including fast food and coffee options Chop & Wok, Burger & Sauce, Pizza Time, Chipsta and Coffee Boy. You can also browse turnkey education franchise options, such as Choice Home Tutoring and Mother Nature Science.

Browse even more fast food franchise opportunities and van franchise opportunities.

Key takeaways

● A turnkey franchise means the franchisor handles most of the setup, so the franchisee can start trading immediately.

● These franchises are common in fast food and man-and-a-van businesses but less typical in premises-based franchises where franchisees often find their own locations.

● The benefits include faster setup, reduced stress and expert guidance.

● Franchisees will typically pay a premium for the turnkey setup, but this can save money and time in the long run.

If you’re looking for a hands-off way to start a business while benefiting from expert guidance, a turnkey franchise could be the ideal choice. However, it’s important to weigh up the costs and consider whether you prefer a more hands-on approach to setting up your business.

By understanding the ins and outs of turnkey franchises, you’ll be better equipped to decide if this model is the right path to your entrepreneurial success.