The most common turnkey business has long been the franchise. A franchise is a business that is a kind of replica of another business, and is often called a chain or a retail chain. The franchisor, or parent company, owns the main business but has outlined a method for duplicating its business model.
Though the parent company owns the franchise, that same parent company sells the rights to start a branch of the business in another location. The business model has been developed and tested by the parent company, and by signing a contract and agreeing to follow the parent company’s formula, anyone who cares to invest in a new location can run the franchise.
Because franchises are based on a standardized way of doing business, branches will oftentimes receive marketing materials and bulk-bought stock from the main branch. This not only lowers costs for the individual store owner, but it helps in keeping each branch consistent with the next. Other perquisites sometimes include centralized support system that includes national advertising, a developed training program.
Though this type of turnkey business has been popular for years, a more recent development is in the attractiveness of franchises that are themselves for sale. Franchise owners who have worked under the auspices of the parent corporation for a period of time but have decided to leave must sell their individual franchise location.
