franchise operation manual

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franchise operation manual
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franchise operation manual

Please complete the short form below to get in touch with us today. An extensive document, the franchise operations manual sets out everything your potential and existing franchisees need to know about the company, their role as a franchisee and the way that they will run their franchise unit as part of the larger franchise collective. Typically a full franchise operations manual will be between 100-300 pages, and sets out how almost everything in the franchise system is carried out, including images to clearly represent and show the standards of the business. This means that as a document, it has several roles within the business, for both franchisors and franchisees, including: The operations manual gives all franchisees the opportunity to ensure they are carrying out their day-to-day operations in line with the organisation as a whole, as well as what to do in processes that aren’t necessarily standard for an individual franchises, such as disciplinary proceedings for employees or how to proceed in emergency situations. For example, dedicated suppliers and other areas in which the franchise as a whole can utilise economies of scale are included in the operations manual, as well as systems and processes around things like labour costs and other expenditures. Without a franchise operations manual or similar quality control document, the franchisor has no legal way to enforce their operational standards across the franchise network. This helps to protect the franchisor in the case of legal action against a specific franchise. As new products and services are added or removed, new staff roles implemented, the franchise network grows and a huge variety of other internal changes happen, the operations manual will adapt and change as well. At The Franchise Company, we create all of our documentation with this in mind, to set you up for success in the long term and to help foster independence and strong leadership within the franchise.

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It’s also important from a legal standpoint, as the operations manual clearly sets out the franchisee’s role as an independent contractor for the business, meaning that the franchisor isn’t liable for errors made by the franchisee, if they are a result of the franchisee not following the standards set out in the operations manual. It contains the entire day-to-day operations of the franchise, and allows them to carry out the operations required by the business, to the standards set out by the franchisor. Having an extensive operations manual prevents difficulties or issues arising where the franchise is in a situation they are unfamiliar or don’t know how to proceed with. It also means that the franchisee doesn’t have to waste their time trying to get answers to any day-to-day questions directly from the franchisor. However, generally the operations manual should always contain some level of information about: Generally, more in-depth and comprehensive documents are put together by a franchise consultant than by a franchisor, as they have the time and expertise to dedicate to drawing up an operations manual. However, the type of business, the size of the franchise network and the level of independence franchisees have, among a variety of other factors, will impact on the length and depth of the franchise operations manual. It should also detail instructions on how to use and implement any financial systems required as standard by the franchisor. Within each of these sections, the respective responsibilities of the franchisor, franchisee, and the standards expected by both parties should be laid out in great detail, to leave no room for interpretation or mistakes on the end of either party. For franchisors to write their own operations manual, it can take a huge amount of time and you may not know exactly what to include.

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It doesn’t need beautiful prose or long-winded descriptions, it simply has to be understood by a wide variety of people and give franchisees all the information they need. Try not to use too much jargon or too many acronyms, unless they are well explained or truly necessary to ensuring your operations manual can be clearly understood. The franchise operations manual should also not be a persuasive document, and while the information in it can be tailored towards potential franchisees, it is not to be used to sell the franchise to them. An extensive contents page, numbered pages, the use of graphics and images and clearly divided sections and subsections that are easy to navigate will all help to make your documents more user-friendly. You should also include the date that the document was most recently modified, to allow franchisees to ensure that they have the most up-to-date version of the operations manual. This makes it much easier to edit and update, and means that franchisees can easily search and find whatever they need in the day-to-day running of the franchise. As you know your business better than anyone else, it might make sense for you to put together this type of document yourself and adapt the template to fit your business model. However, it is very likely that you don’t have any experience writing such an in depth and important document, and so may leave yourself open to legal difficulties and other inaccuracies. The franchise operations manual is also an extensive document, and can take thousands of hours for a franchisor to put together on their own, alongside running the business and going through the franchising process, meaning it just might not be feasible for the business owner to write their own documentation. Our team of franchise consultants have years of experience and so understand exactly what needs to go into a franchise operations manual to ensure it is legally sound and fit for purpose.

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We’ll also ensure we have a great understanding of your business - as part of our evaluation process, we spend time with you, at your business location, examining every part of your business to determine your viability and give us the information we need to write high-quality documentation. We deeply examine how you carry out your operations and marketing, as well as how your business organises its finances, to understand what makes it tick. This means that we are perfectly placed to put together franchise operations manuals that contain all the information you need, and are of a high standard, tailored to your business. Monday, 6 July 2020 3:25 pm It's true that people still most associate franchising with commercial enterprises and profit-making. But over the years, Read article Free Covid 19 Advice for Franchisor’s Wednesday, 1 July 2020 1:23 pm Free COVID-19 Advice for Franchisor’s. The instructions contained in this document help you maintain the the franchise system’s intellectual property and offer quality services in your new store or business. In short, it outlines the parameters within which you should operate. This blueprint is the franchise operations manual. The primary purpose of this document is to instruct you on how to operate the business; it is not persuasive or fluffy. Instead, it is concise, written in bullet point formt and has charts and other graphs and illustrations. The operations manual contains confidential information from the franchisor to the franchisee about the systems, procedures as well as operations of the business. Namely, it covers the “how-to” guides that make it easy for the franchisee to operate. Also, it serves as a legal document through which a franchisor advises the franchisees about the elements of the business, including the marketing, procurement, and other operations. This includes the exclusive suppliers from which the franchisee can buy products and ingredients.

Contents of the Franchise Operations Manual The layout or format that each franchise system uses can vary. The operations guide could be in the form of conventional print or in digital content such as videos. It doesn’t matter how the franchisor presents the document as long they convey the information. The content addresses quite a few topics such as: 1. Confidentiality of the operations manual The document needs to disclose to the franchisee that the document contains confidential information and must remain private. Then, the introduction outlines what role the manual will play in the franchise system and how it should be used. Also, it mentions any updates the manual may have and any legal disclaimers worth mentioning. 2. About the Franchise The second objective of the manual is to tell the franchisee about the brand. It's a chance for the franchisor to tell the new owners about the business. The section empowers the franchisees to replicate the brand quality and standards to the new business. The franchisees, though not from a legal perspective, serve as business partners to the parent company. This section of the document should help them to imitate the mindset in the business.It should also tell them about the potentialHere, the franchisor trains the franchisee what the company does and the procedures to do it. So, this part has two sections: the description and the explanation. Some of the information contained in this sectionIn this section, the franchisor educates the franchisee on how to promote and manage the business effectively. Here, the franchise owner learns how to make use of the tools provided to them to increase sales. The content in this section includes information about: Marketing strategies based on the franchisor’s case studies Using the company’s website Social media and email marketing 5.

Suppliers, ingredients, procurement, and signage The other goal of an operations manual is to instruct the franchisees on the exclusive supply chain and, with food franchises, approved ingredients. This section outlines in detail any products that must be used to make the signature flavors or styles of the company. Further, the document illustrates how to obtain these ingredients from approved suppliers. It is in this section, you'll find detailed information about recipes, restrictions, and signage as well as other instructions about product and brand compliance. In most cases, this section is used as a reference guide where you might find: List of accredited suppliers Insurance for the maintenance Approved ingredients and services Construction and design layout Using the management systems Process of requesting the approval of other suppliers Templates of answering emails and phone calls The franchise operations manual may vary between a company or an industry. However, the content discussed is primarily what you’d find in a standard document. Resources About the Author - Kerry Crocco Marketing Coordinator for Franchise Solutions and Franchise.com; conduct email marketing campaigns, web page management and trade show coordination. Mother of two, wife and Young Living Essential Oils representative. Categorized Under: Franchise Information Text Search: Search Recent Posts May Sound Crazy, But It’s OK to Start a Business during the Pandemic Shining Franchise Categories Showing August Growth N-Hance Sees Positivity in Pandemic Rebound. Topics typically include information about initial training, developing the franchised business, opening and operating the franchised business, marketing, and system requirements as to designated vendors, and sources of supply. The operations manual can take many forms from traditional printed materials to online digital guides and videos.

Because the information contained in the operations manual is confidential, within the FDD, franchisors are only required to disclose the operations manuals table of contents and number of pages. Below we discuss the franchise operations manual in more detail. The Role of the Operations Manual For franchisors, the operations manual is an important tool used to organize, document, and communicate the operational requirements, systems, and procedures for franchisee training and the establishing and running the franchised business. Although operational in nature, the operations manual also serves an important legal role as it is the primary instrument by which a franchisor will communicate mandatory and required systems and procedures to be followed by franchisees. Within the typical FDD and franchise agreement there are numerous references to the “confidential operations manual” and the legal requirement that franchisees comply with the systems and procedures that the franchisor includes in the operations manual and as the franchisor may modify and supplement from time to time. Who Prepares the Operations Manual Many start-up franchisors spend the time to prepare their own operations manual and others rely on the assistance from franchise development professionals. Whether you prepare your operations manual yourself or work with a franchise development team, your participation in the development of the operations manual will be critical for your operations manual to reflect your business and your systems. When it comes to developing your operations manual it is critical that you avoid the generic and get to the heart of what your business is all about and how franchisees can duplicate your brand and success.

Type of Content That Should be Included in Your Operations Manual Consider that the goal of your operations manual should be to accomplish the following objectives: Introduce your new franchisee to your management team, your brand and your mission as a business; Inform and educate you franchisees about how your franchise system operates, your relationship with them and the exclusive manufacturers and supplies that you require that they use; Inform and educate your franchisees about the steps involved in building-out and establishing their franchised outlet; Inform and educate your franchisees about how to conduct the day-to-day operations of the franchised business; Inform and educate your franchisees about their administrative and reporting obligations; and Inform your franchisees about the confidentiality of the operations manual. Below we have identified some but not all of the information goals that your operations manual should accomplish and a sampling of what a portion of the operations manual table of contents may look like: Information Goal 1: The Role of the Operations Manual The first goal is to disclose information about the operations manual, the confidential nature of the information contained in the operations manual, and the role that the operations manual serves in your franchise system and the operations of the franchised business. As to this topic, a sample table of contents, may include: The Role of this Operations Manual; The Confidential Nature of the Information Contained in this Operations Manual; Updates to this Operations Manual; and Legal Disclaimers. Information Goal 2: Your Story and Mission The second goal that your operations manual should achieve is to convey “your story”, “ the story of your business and the business that they are about to invest in “. Don’t underestimate the significance of communicating your story as part of the franchising process will be to empower your franchisees to duplicate your brand.

In many ways franchisees will, in certain aspects but not legally, be your business partners and it is important that they share the same “mindset” as to the business, customers and the unique selling proposition of your business. This second section is the “how to” section and should be extremely detailed. This is a critical section since, much more often than not, successful franchisees are not those working “in the business”, i.e. providing the service or selling product but, rather, those continuously working to market, promote and manage the franchise business. That is, teaching franchisees to work “on their franchised business” but not “in their franchised business”. Basically a reference tool. As to this topic, a sample table of contents, may include: Buildout and Construction Requirements and Plans; Approved Suppliers; Approved Products and Services; Insurance that You Must Maintain; Logging into our CRM System; Scripts for Answering Phone Calls; Scripts for responding to emails; Requesting Approval of Other Vendors; and Order forms. Of course, there will be significant variation depending on your business and your industry. It is important to understand that your operations is a “living document” that, over time, will be adjusted, modified and supplemented. Developing the right operations manual will take you a long way toward establishing a solid foundation with your franchisees and maintaining control over your franchise system. More Information Contact us at (800) 976-4904 or by email to Learn more about how we can can help you franchise your business or, if you are an existing franchisor, how we can help you grow your franchise. Let's Talk With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your brand. Click on the button below or call us at (800) 976-4904.

Do you want to learn more about franchise sale compliance and ensure that your sales practices comply with franchise laws and are consistent with best practices. Then this guide is for you. In this guide you’ll learn the.We’ll also take a deeper dive into legal requirements for franchising and why they matter, steps to take before and after you launch your franchise, and even some tips on.Licensing When considering expanding a business both franchising and licensing are possible options. In this guide, you'll learn the differences of franchising and licensing and understand how each will affect you. If so, its important to understand the advantages and disadvantages of franchising your business. Franchising is a legal and business model designed to achieve multi-unit expansion. Compared to organic expansion where you invest in and open multiple locations yourself, franchising allows you to recruit.Below we discuss each franchise document in detail. 1. Franchise Disclosure Document Before you can offer or sell a franchise you are required to issue and disclose.Franchising may be the next big step for your business and represents an opportunity to grow your brand. So, how do you know if franchising is right for you. How do you know if your business is franchisable and, if it is, whether or not you should franchise your business?. read more all articles Positioning Your Brand to Win at Franchise Sales In this webinar, Charles Internicola and Laura Meyer, founder of Joybrand Creative, talk about how to position your brand to win at franchise sales. Some topics include: How franchisors can develop their brand strategy How to differentiate your brand strategy between your targeted end-user customers and prospective franchisees for franchise.Some topics include: Steps franchisors should take when it. Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.

An attorney client relationship is not established by submitting this initial contact information. The franchise manual acts as: For a typical manual, the entire drafting process takes us about 16 weeks to complete. If assistance is needed to view any content on our website, please contact us directly. Privacy Policy, Sitemap. Take a Look at Our Online Manual Take a Look at Our Online Manual The content of a custom Franchise Operations Manual is usually more complicated than most people realize. The outline below is only a SAMPLE outline that we use as a starting point to create your custom outline. In the case of a manual rewrite, we would use your existing outline as a starting point and then draw from this outline for missing headings or content. Part of this assistance involves loaning the franchisee a copy of the franchisor’s operations manual (“Operations Manual”). The Operations Manual is a detailed document containing information on the standards and procedures franchisees must meet with respect to the operation of the franchised business. Although franchisors are not required to provide prospects with the Operations Manual before sale of the franchise, they must attach to the FDD the table of contents (“TOC”) and include the total number of pages devoted to each subject as well as the total number of pages in the Operations Manual. However, the information contained in the Operations Manual is typically deemed confidential by the franchisor. As a result, if the franchisor is going to share it with a prospective franchisee, the franchisor will want to ensure that the prospect first signs a confidentiality and non-disclosure agreement. The contents of the Operations Manual will vary depending on the type of business, but typical issues addressed include: It must be detailed enough that franchisors can enforce their standards and franchisees understand their obligations.

However, it should not be so specific that the franchisor risks being deemed the “joint employer” of the personnel hired by the franchisee. While the franchisees must adhere to the franchisor’s brand standards, they otherwise own and operate independent businesses. In light of fluctuating joint employer standards, franchisors should consult a franchise attorney to, among other things, ensure the Operations Manual does not permit them to exert too much control over the employment decisions of the franchisees’ employees. Franchisors should begin working on their documents as soon as possible after deciding to sell franchises. Not only will they need the TOC in order to finalize the FDD, they will need to provide the Operations Manual to franchisees shortly after sales are completed. Not sure where to start. In this exclusive guide for business owners and entrepreneurs, you will learn if you’re ready to grow your brand through franchising. Prior results do not guaranty a similar outcome. By continuing to browse the site you are agreeing to our use of cookies.Well-known examples include McDonald's, The Body Shop and Cash Generator. This includes everything you need to know to run that particular business, from hiring employees through to marketing and sales.A professionally written manual will ensure that your existing operation is best equipped to follow your proven business systems and procedures, and transfer them to franchisees.With over 30 years' experience in this field, we would therefore like to take this opportunity to invite you to one of our offices so that you can see first-hand the quality of Operations and Training Manuals that have been produced over the years.This is also an opportunity to learn from open discussions with our franchise consultants and manual writers as to how you could best proceed from where you are towards achieving your business development goals.

Its staff's detailed data gathering and documentation of the day-to-day basics was thorough and professional.I highly recommend them.” Katharine Pooley International We would highly recommend them.” Omar Park Development Services The FDS team in Lebanon and the UK has been very professional and we are highly satisfied with the quality of the franchise consultancy and Franchise Operations Manuals delivered. We look forward to maintaining our relationship with FDS and we heartily recommend FDS to similar businesses.” Wooden Bakery The Manual has been completed to our entire satisfaction and would like to thank FDS for their support, as well as helping us to launch the franchise.” Project Miner ” FDS provided all the help and guidance that we needed to make the whole process manageable and stress-free. Their patience and support has been invaluable throughout.” The LowTax Group. But it’s a lengthy document, and should give franchisees and employees alike a good understanding of the business and how to operate within it. So, here’s our step-by-step guide to writing an effective franchise operations manual. Well, it’s a document written by the franchisor for the franchisees who buy into the business. It details the rights and responsibilities held by both the franchisor and franchisee, and explains how the franchise’s business model works. The operations manual is probably the most important of these tools. Without it, there would be no standardisation across the franchise system, and franchisees would be able to run their unit in any way they wanted to. This is vital, as the success of a franchise relies, to a certain extent, on providing the same service at every unit. If this isn’t the case, the brand’s reputation is likely to suffer, for two main reasons: Take McDonald’s, for example. No matter where you go in the world, you can walk into a McDonald’s outlet and know what to expect.

Customers on one side of the world can enjoy the same tasty meals as their counterparts on the other side. Without an operations manual, standards will inevitably vary between franchise units and damage the brand’s reputation. This makes it easier to incorporate information, communications and performance records into a single centralised system controlled by the franchisor. If franchisees each used their own software and ran their business according to their own specifications, there would be significant issues when managing the franchise as a whole. Essentially, the document includes three main categories of information: In this section, you should also walk the investor through the process of setting up a new franchise unit and how they could develop it over time. Be sure to provide all the key pieces of information they need to know when launching their business. It’s normally the longest section, as you’ll need to be thorough to avoid franchise-wide inconsistencies. Give details about the financial procedures and how performance is measured and provide examples of best practice in every business area. It might be useful to create flowcharts when explaining complex processes, so readers can easily follow them. Here, you should create marketing guidelines and specify when and how franchisees should use your logo and other imagery. Also, give more information about your product range or services, how they’re priced and which suppliers you use. Don’t forget to include details of any specialist software or equipment franchisees will need to use. Explain how you handle business tasks and any issues that crop up, and include any specific information relating to the running of the franchise. In this section, you should also outline the health and safety regulations and any emergency procedures. Then, you’ll need to create a list of key players in the business, with their job descriptions and contact details, which will help resolve any issues quickly and easily.

Record individuals’ responsibilities and who they answer to. You should also include information on audits, assessments and monitoring processes and how complaints are managed. This step will give the document a final touch of professionalism, which should motivate franchisees to respect it and adhere to it. In the past, many franchisors have made multiple print copies of the manual and distributed it to everyone in the business. Today, this can seem unnecessary and unsustainable. As an alternative, you could publish it on an online portal or other secure space your franchisees have access to. As a result, you should take measures to protect it against misuse. One of the best ways to do this is by limiting the number of people who see the document before signing a franchise agreement. Ideally, you would only give it to those who have signed on the dotted line, but you will usually need to let potential franchisees who are close to committing take a look too. In these cases, they should sign a confidentiality agreement first. You should also consider liability issues when writing the manual, so it may be helpful to consult an expert in franchise law and a professional editor. This will be the business’ key text, so you should make sure it’s been professionally edited and checked over before distributing it. Here's What You Should Keep Top of Mind Please rate this article Subscribe to our newsletter! Be the first to publish a comment!Subscribe to our newsletter. Read More Email This field is for validation purposes and should be left unchanged. Download our FREE ebook Find out more about successful beauty salon digital marketing with our sequence of free e-books and templates. Talk to Dani Hi, Thank you for taking interest in talking to me. You can either schedule a call with me here or send me your query through the contact form and I will reply to you as soon as I can. Thanks and speak to you soon.