Franchising opportunities come in three basic setups – a simple franchise, a partial turnkey franchise, and a complete turn-key franchise. While many franchising opportunities claim to be complete turnkey setups, they generally fall into the partial turnkey setup, and for most people, this is possibly a better option.
What is a turnkey franchise? In the complete turnkey setup, the franchise owners will source a building or shop, negotiate your lease, fit out the building, or shop and hire your staff. They then hand over the keys and you effectively ‘turn the key in the door’ and you’re open for business.
I mentioned that a partial turnkey operation is possibly the best way to start for good reason. With a complete turnkey package, you are not part of that setup phase and this can be an unsettling factor. With a partial turnkey package, the franchise owners work with you to source a building or shop, work with you to negotiate a lease, and work with you to hire staff. You often have a range of draft shop fit-outs to choose from and together it puts you in charge of the process from day one. It’s your business so it makes sense that you own the processes from day one.
A simple franchise package is one where you are left to do all the work yourself. This approach is fine for those with management experience, but can be a little daunting for those who have never had any business involvement at all. Turnkey franchises are often a little more expensive, but the closer involvement in your setup can help to make or break your business. Franchise owners want you to succeed since their reputation, and future income relies on that success.
If you don’t have a lot of business experience and your franchise options include a need for a dedicated building, shop, kiosk, or floor space, then a turnkey or partial turnkey franchise opportunity could be the best path to your future success.
