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. Franchiser

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

    The party in a franchising agreement that is purchasing the right ...
  5. Franchise

    A type of license that a party (franchisee) acquires to allow ...
  6. Turnkey Solution

    A type of system that can be easily implemented into current ...
Related Articles
  1. Entrepreneurship

    Is Buying A Franchise Wise?

    If you like being your own boss, this is not the job for you.
  2. Personal Finance

    Share The Wealth With Franchises

    Skip the first step and build off of someone else's successful business model.
  3. Entrepreneurship

    Small Business: It's All About Relationships

    Rather than be a jack-of-all-trades, an owner should rely on a network of trusted experts.
  4. Entrepreneurship

    9 Tips For Growing A Successful Business

    Give your business what it needs to thrive and it will reward you for years to come.
  5. Entrepreneurship

    Past 40? Advice On Starting A Business

    Pluses and maybes to consider before you leap – or before you dig yourself deeper into the hole where you’ve landed.
  6. Entrepreneurship

    How can I become a venture capitalist?

    Find out what it takes to become a venture capitalist, and read about some of the primary attributes private equity firms look for in a potential hire.
  7. Entrepreneurship

    How do ridesharing companies like Uber make money?

    Discover the services a transportation company such as Uber provides and how the premiere ridesharing company operates and makes money.
  8. Entrepreneurship

    How Steve Jobs Changed The World

    As an innovator and visionary, Steve Jobs’s accomplishments can be held on a pedestal with the likes of Microsoft’s Bill Gates, Google’s Larry Page and Sergey Brin and Facebook’s Mark Zuckerberg.
  9. Investing

    A Look at the 5 Richest People in the World

    Who are the five richest people in the world and how did they manage that feat?
  10. Professionals

    Understanding Interpersonal Skills

    Interpersonal skills are the social skills people use to interact effectively with other people. A lack of good interpersonal skills may lead to unsuccessful personal relationships, as well as ...

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center