The Operations Manual
The Operations Manual is the ‘bible’ of the franchised business and forms a significant part of the franchise contract. It is the Franchisee’s primary source of information and guidance and should contain a detailed description of the Franchisor’s system and how to operate it on a daily basis.
Essentially, it will specific to the needs and requirements of the system such as regulating opening hours, product description, stock control stock ordering procedures, handling customer complaints, the payment of fees, and policies in regard to advertising, marketing and promotions.
It will cover set up procedures, including advice on researching the market, business and tax registration, insurance, opening bank accounts, cash security, site set up, and the preparation of a marketing plan.
But it will also refer to building brand awareness, human resources, health and safety matters and basic accounting procedures, such as VAT returns and the observance of other statutory obligations.
In many franchises this information is contained in one volume but it could run to several, each book dealing with the operation of just one aspect of the franchisee’s business.
The manual is “flexible” in that it allows for changes to be incorporated. Given that a franchise is an ongoing commercial enterprise, alterations to procedures may need to be made in the light of experience and circumstances to allow the franchisee to operate the system more efficiently.
In fact, most agreements oblige the Franchisor to “develop, improve, and enhance” his system for the benefit of everyone in his network. He can accommodate such improvements in the manual. It is the Franchisee’s responsibility to keep his staff up to date with such changes and to make maximum use of the manual in his day-to-day operations.
The manual is usually used as the basis for franchisee training, each section being discussed in detail in a workshop situation.
The Franchisor jealously guards the content of his Operations Manual and will not want to part with it prior to the Franchisee signing a franchise agreement. He can rightfully claim that it holds the “secrets” to his business system. Even when the Franchisee is on board the manual is only ever on loan to him and must be returned when the agreement expires.
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September 28th, 2009 at 4:36 pm
Very informative! This makes one aware of what to look for and recognize the vital information needed for proceeding with the operations with proper guidance and knowledge of the important points to be given full attention in running the business.