Applied to franchises, turnkey operations means just the same. If you buy a franchise under this agreement, it means that you will pay the seller upon the completion of the project. Please note however that turnkey agreements are very complicated because of uncertainties on both sides. This gets the financial and the legal institutions involved because everyone wants to protect him or herself. In a turnkey operation, the seller assures the buyer that he is capable of building a project with his own financing and technical capabilities.
Companies normally offer big projects on Turnkey operations.
Offering turnkey agreements give the seller an edge over competing companies who does not have financing support from banks and those who may need staggered payment terms like down payments and so much percent after so much percentage of completion of the project. The same thing applies for turnkey operations in buying an existing business. You pay the seller after all your conditions are fully satisfied. All rights reserved. Click here for Terms of Use and Privacy Policy applicable to this site.