A turnkey franchise that’s ready for immediate use sounds like a great opportunity, but is it right for you? Here’s what to look for — and what to avoid.
WHAT IS A TURNKEY BUSINESS?
In terms of franchising, a turnkey package is set up to include everything an owner needs to start their business. This includes a business model, permits, name and branding, location, equipment, and inventory. You pay your fee, and the franchisor handles all the details to get you operational. Ideally, once you invest, all you must do is “turn the key,” step inside, and your business is ready to go.
A non-franchise turnkey business may not require ongoing royalty fees after the initial cost of purchase, but the benefits of a turnkey franchise include ongoing support, marketing services, and more. Franchising is an appealing option for savvy entrepreneurs who want to entrust the growth and promotion of their business to qualified experts who are invested in their success.
WHAT ARE SOME POPULAR TYPES OF TURNKEY BUSINESSES?
A turnkey business for sale may be available in different industries or formats. Some may be internet-based, with a fully formed website and products to sell. Real estate turnkey businesses include office or apartment building management with fully developed and occupied properties.
In the case of franchises, a turnkey business often includes a building that has been constructed to the franchise’s specifications. Tim Horton’s and Subway restaurants are examples of turnkey restaurant franchises. In terms of a salon suite franchise for sale, MY SALON Suite is a prime example of a model that appeals to investors for its comprehensive turnkey package.
WHAT ARE THE ADVANTAGES OF A TURNKEY BUSINESS OPPORTUNITY?
Opening a new business can require a great deal of legwork, unplanned expenses, and unforeseen challenges. With the right turnkey business, there is little to no lead time to get you to Opening Day. Name recognition and an established reputation are also great benefits of investing in a turnkey franchise, particularly when you partner with a brand that employs enthusiastic marketing strategies and has developed a strong customer following. The bottom line: a turnkey franchise allows you to hit the ground running with a successful business model, an established brand name, proven products or services, and an existing customer base who will be excited to visit your new location.
WHAT SHOULD I WATCH OUT FOR?
The challenge with turnkey packages often lies in the markup. You should expect to get a great deal in return for investing in a full turnkey franchise, especially since you are taking advantage of the buying power of an established brand. If it is a true turnkey opportunity, your upfront costs should cover everything needed to get your business started. This is a significant investment, and you should be prepared to pay a fair price for work that is being done on your behalf. At the same time, you shouldn’t be paying a large markup above the true costs of the franchise components.
To find out whether or not you are looking at a fair turnkey business for sale, you should request a complete breakdown of the deal, including markups. If labor costs are built in, be sure to note the markup percentage. Familiarize yourself with the terms of the agreement, including ongoing fees, royalties, and the level of support offered. If you will be depending on group purchasing for inventory and supplies, make sure you are getting favorable terms and not being overcharged.
Another good way to find out if a turnkey franchise is a sound opportunity is to speak with existing franchisees. Ask them about their level of satisfaction within the brand, including whether they feel they are receiving the full value of their investment.
HOW DO I CHOOSE THE RIGHT TURNKEY BUSINESS FOR SALE?
Finding the best turnkey franchise opportunity to suit you will require a good amount of research and consideration. Do you have enough capital to invest? Is the company well established, and are they offering favorable terms? Will this new business venture bring you both professional and personal satisfaction?
While a turnkey franchise provides you with the backing and legwork of a ready-to-launch business, you must still prepare to commit yourself to do your part to help your business thrive. With all the built-in advantages, it’s important that you find a business model you can see yourself nurturing for the long run.
BUILD YOUR TURNKEY BUSINESS WITH MY SALON SUITE
MY SALON Suite is a turnkey salon suite franchise that brings together a collection of independent beauty professionals in one fully equipped, glamorous location. Being named a Top Franchise for 2021 by Franchise Business Review demonstrates the respect the franchise owners share, as well as the commitment the company has to each owner’s success.
MY SALON Suite franchise owners enjoy the freedom and support of an award-winning brand noted for its high earning potential and semi-absentee ownership model while providing a space that attracts world-class beauty professionals and loyal customers.To learn more about turnkey franchise opportunities with MY SALON Suite, please visit us.