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Turnkey Business

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Definition:

A turnkey business is a business that includes everything you need to immediately start running the business.

InvestorWords.com defines a turnkey operation as "A product or service which can be implemented or utilized with no additional work required by the buyer (just by 'turning the key')".

A business that is being sold as a turnkey business would include tangibles such as inventory and equipment through intangibles such as a previously established reputation and goodwill.

The most common type of business sold as a turnkey business is a franchise. In the case of franchises, a turnkey business often includes a building that has been constructed to the franchise's specifications, and an exclusive territory.

Entrepreneurs considering buying a turnkey businessshould always do their due diligence and be sure they know exactly what a particular turnkey operation includes; not all turnkey businesses are created equal!

Also Known As: Turnkey. Often considered a synonym for franchise, but not all franchises are turnkey operations.
Alternate Spellings: Turn key business.
Common Misspellings: Turnkey buisness; turnkee business.
Examples:
One of the things that Jeff really liked about the franchise opportunity he decided to invest in is that it was a turnkey business.

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