Turnkey Business

AAA

DEFINITION of 'Turnkey Business'

A situation in which a firm's high-level management plans and executes all business strategies to ensure that individuals can buy a franchise or business and only "turn the key" to begin operations. A turnkey business already has a proven, successful business model and merely requires investment capital and labor. Franchises are typically turnkey business, but any existing business that's already up and running successfully or a new business whose doors are ready to be opened could be considered a turnkey business.



INVESTOPEDIA EXPLAINS 'Turnkey Business'

Subway's sandwich shops are an example of a turnkey business. The menu has already been developed, the stores have already been designed, the employees' uniforms have already been chosen, marketing is already in place and consumers are already familiar with the brand. To open a new Subway franchise, an individual only needs to pay startup and operating costs for one store location, a franchise fee and ongoing royalty fees; he or she does not have to worry about the other major aspects of business development.

RELATED TERMS
  1. Turnkey Cost

    Costs and expenditures that must be covered before a product ...
  2. Proprietary Technology

    A process, tool, system or similar item that is the property ...
  3. Franchise

    A type of license that a party (franchisee) acquires to allow ...
  4. Franchiser

    A party in a franchising enterprise that ultimately owns the ...
  5. Franchisee

    The party in a franchising agreement that is purchasing the right ...
  6. Turnkey Solution

    A type of system that can be easily implemented into current ...
Related Articles
  1. Is Buying A Franchise Wise?
    Entrepreneurship

    Is Buying A Franchise Wise?

  2. Share The Wealth With Franchises
    Personal Finance

    Share The Wealth With Franchises

  3. Small Business: It's All About Relationships
    Entrepreneurship

    Small Business: It's All About Relationships

  4. 9 Tips For Growing A Successful Business
    Entrepreneurship

    9 Tips For Growing A Successful Business

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center