The term turn key business makes it sound as a ready to operate business opportunity. To understand the term better, let us just take a look at what a franchise really is and its benefits and shortcomings
In terms of franchising, turn-key business means a business that provides you with a complete package that is required to start a business. As SBP Pattabhi Rama Rao, President, Cookieman says, “A good franchisor believes in the mantra that ‘a franchisor can succeed only if his franchisee succeeds’ and help his franchisees in every step possible to ensure that every retail store has a smooth operation and operates as a profit centre.”
Franchise is a successful way of business expansion. A well established business organisation sells the right of using its trademark to the aspiring entrepreneurs. It not only helps in increasing the presence of that particular business organisation to another territory but also helps the franchisee to grow and establish his business under the company’s trademark. The best part of franchise is that it has something for every aspiring business person.
The benefits of taking up a franchise incorporates all the necessary help such as searching for an apt location, signing the lease, set-up and designing of the outlet, recruiting and training of the staff, advertising and marketing of your business and timely guidance. All you have to do is to invest your money and time to make your franchise business succeed. Yes, it is just like turning a key and gets started.
But you cannot apply the term turn-key to every other franchise business as every franchisor has own set policies to help and support the franchisees. And moreover, there is a particular period up to which they offer help to their franchisees. So, if you want to take the franchise of a business, you have to evaluate the value of the turn-key package. There are a few franchisors who offer help in certain areas and not in all the areas mentioned above. So, you have to make it clear in the beginning that what kind of help your franchisor is going to provide you and for how long. Answers to above mentioned questions will make you understand the amount of effort you have to put in.
It is to some extent correct to call the franchise a ‘turn-key business’ as a franchisee has to work hard and dedicate enough time to his business to make it successful. Franchisor can only help you in establishing your business; later it is up to your capability to make it grow. A franchise business is just like a talent show where the organiser provides you a stage and the requisites; rest is up to you how you use the stage to grow in life.
A franchise business is advantageous for you in terms of the work as it is comparatively less stressful. But on the other hand a franchise can also turn heavy, as you may have to face the drawback of unnecessary expenses charged by the franchisor for the help and support. So, if you are looking for a ready to operate franchise business, then do collect information from the previous franchisees regarding the value of turn-key package. And thoroughly discuss the various aspects of the package, their experiences and the results.
Finally, remember that there is no such magical key in the business world that can provide you success unless you do not work hard for it. It depends upon your talent and determination to drive your business to success.