I hear two words from prospective franchisees all the time. In fact, almost every time someone visits with me regarding a franchise opportunity. But a blog post on the Franchise King’s Blog says these two words don’t exist in franchising.
If you are a prospective franchisee read the post from the Franchise King and take it to heart. There is no such thing as “Turn-Key”. Franchise operations do not magically appear and then you walk through the door to a pile of cash thrown at your feet. It’s hard work and it depends all on you.
I can tell you from experience that if a dispute or litigation occurs, the franchisor will probably deny they know what “turn-key” means and the franchise agreement will contain disclaimers that make the franchisor’s marketing materials immaterial. And although the franchise industry has done a good job of marketing its method of business, the facts are that franchise operations fail at essentially the same rate as independent business operations.
I am not anti-franchising. Franchising definitely has its place. But I’d make sure I was with a franchisor that possesses superior name recognition in its marketplace, quality products and/or services and a proven system. A proven system that won’t be “turn-key”.