What does the phrase ‘turnkey’ mean?

This is a term that is normally used in a premises-based franchise when the franchisor undertakes all the tasks required to locate, acquire, convert or develop, fit-out and stock a property in order for it to be ready for the franchisee to open up and start trading.  The process is generally completed while the franchisee is undergoing training, at the end of which they are given the key to the premises and all they have to do is ‘turn’ it one morning, and off they go. The franchisor will charge a fee, on top of all the other upfront and training fees, for managing the ‘turnkey’ process.  Having explained the term, it is worth pointing out that it is not a very common practice. More often, the franchisee is left to look for appropriate premises in the agreed area, based on a profile provided by the franchisor, and to then submit that property for approval.  Once approved, the franchisor will then provide plans that should be used to do the conversion and fit-out, but the franchisee is left to find, manage and pay the various contractors to do the work, although some may be recommended or specified by the franchisor.