This really hasn’t been much of a topic of discussion in the past, as the phrase “Turnkey” used to relate only to the franchise business. In the last 5 years alone, the turnkey business opportunity has become a major competitor to franchise ownership. But really, what’s the difference? Well, the most obvious difference is in the price to begin with. Typically, new franchise businesses cost more to participate in, while turnkey is slightly less expensive. Franchises take a little longer to start (usually months) and turnkeys can be implemented very quickly (days our hours in some cases).

Franchise openings are much like the closing of an expensive property with attorneys involved and repetitive language with page after page of contracts. Turnkey opportunities can usually be agreed to in writing with a few pages and less legal hassle (or no attorney fees). Some often have agreed language when the purchase is made as on the receipt or posted on their websites. So which one is better? Who reigns supreme? Well, let’s analyze a bit more before those questions are answered.

The way I like to see the difference between a franchise and a turnkey opportunity is David and Goliath! With David being turnkey and Goliath being a franchise business. Or perhaps a better way to look at it is in terms of established investing -vs- risky investing. The franchise would be more like a company that has a track record and is profitable, although the only way they are profitable is through their franchise network. The turnkey business opportunity is more like a company with a big vision, younger in life and ready to seek out venture capital funding for the next step in building their model, again the only way they are profitable is through their network of partners.

Similarities you ask? Yes, they both have some similarities. Both rely on external funding and operational help to boost revenue. External funding comes from you, the prospective franchisee or partner. Your success is their success. Both have current agreements and provide support to their investors (franchisees and partners). Both will provide training, and some will even offer incentives (such as free leads, discounts on services, accounting support, etc.). So who is the big winner? What is the investment model for an aspiring entrepreneur? Please tell me please!

Well, my rule of thumb for an entrepreneur looking for a solid future investment in another company’s products or services is to look for future growth and expansion opportunities. What do you want to achieve as an entrepreneur? Most franchises have limitations on what you can do in terms of putting your own creative thinking outside the box into the business. A franchise: it is what it is, but that doesn’t mean you can’t be successful. For the most part, franchises (the well-established ones) are more secure in terms of return on investment; it just takes longer to be profitable. You know Subway won’t go under and people will come in every day and buy the sandwiches. A turnkey opportunity is a low-cost/high-risk investment that you can usually be more creative with.

They typically require little or no overhead (operating expense) and the entrepreneur can come up with profitable and creative ways to market and sell their systems. Turnkey business opportunities are frowned upon by the public and institutional investment community, however, for creative and passionate entrepreneurs, they welcome the naysayers and often want to prove them wrong! “Bring a frown on Mr. Stuffy Wall St., but I own 25 small turnkey businesses generating $600k annual gross income”… is what most entrepreneurs and turnkey business owners say! in hand they mean! That is the only advantage for an entrepreneur if he chooses turnkey solutions: he can (and most do) afford to invest in multiple business ownership. Yes, franchise owners can do the same but at a much higher investment price.

So, to conclude, in this author’s opinion, “If you are a radiant entrepreneur or would-be entrepreneur, why not try some low-cost turnkey business opportunities first? This will give you greater experience if you have a business background.” It allows you to be extremely flexible and creative in your approach to marketing and sales, and offers as much earning potential as a well-established franchise business.” There is a new opportunity recently created called the Independent Training Distribution Program offered exclusively by the author’s company.