Operations Manual

While conducting pilot operations, a franchisor should create an operations manual (“manual”) that states in detail the method of how to operate a franchise. For starters, the manual will have copyright protection. Although the manual is specific to the individual franchise system, here are some general guidelines on what the manual should include.

First, the manual should contain a brief overview of the franchise system, which includes all the sperate elements that together form the big picture. Following the overview, the manual should state the obligations of both the franchisee and franchisor.

Second, the manual should include the details of how to operate the franchise and equipment. It is advised to include answers to the most common questions franchisees may have. The instructions on how to operate the business, which may include but are not limited to: operating hours, staff training and job descriptions, product and/or service standards, customer complaint procedures, insurance requirements, reporting requirements, and advertising requirements. The instructions should include all relevant information for the successful operation of the franchise.

Finally, the manual should include standard forms that the franchisee can use, which may include but are not limited to: non-disclosure agreements, customer invoices, and employee agreements.

For a more comprehensive list on what to include in an operations manual or how to create one from scratch, contact franchise attorney Mario Herman.