10 Key Things to Include in Your Franchising Operations Manual

In Short:

• Your franchising operations manual is crucial for outlining business operations, branding, and franchisee responsibilities.

• Key elements include company introduction, goods and services, suppliers, marketing guidelines, and customer service policies.

• Ensure comprehensive coverage of legal notices, personnel policies, and performance targets to maintain consistency and compliance.

Tips for Businesses:
Ensure your franchising operations manual clearly outlines your business’s mission, expectations for franchisees, and all operational standards. Include guidelines on marketing, customer service, and personnel, along with legal notices for confidentiality. Regularly update the manual and provide ongoing training to keep all franchisees aligned with your brand’s values and standards.

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Table of Contents

• 1. Company Introduction
• 2. Goods and Services Offered
• 3. Suppliers
• 4. Software and Equipment
• 5. Marketing and Advertising
• 6. Performance Targets
• 7. Customer Service Policies 
• 8. Personnel
• 9. Premises
• 10. Legal Notices
• Key Takeaways
• Frequently Asked Questions

Your franchising operations manual serves as the blueprint of your franchising system. As it provides information about your business operations and standards, it must effectively communicate all critical information to your franchisees. This article will take you through 10 key things to include in your franchising operations manual.

1. Company Introduction

The first thing to include in your franchising operations manual is an introduction to your business.

Providing this at the start of your franchising operations manual will ensure your franchisees understand and can align themselves with your business’ vision from the outset. 

2. Goods and Services Offered

Your franchising operations manual must include details about your franchise’s products and services. For example, if you are a restaurant franchise, you should explain exactly what goods are available and the relevant ingredients and recipes for producing these goods. 

3. Suppliers

In addition to explaining the available goods and services, your franchising operations manual should also explain exactly how any materials needed to produce your goods or services offerings are to be acquired. This should be included in your franchising operations manual if you expect your franchisees to source their products from specific suppliers. If your franchisees can find their own suppliers, you should specify that suppliers must be of a particular standard.

4. Software and Equipment

Suppose there is particular software or machinery that your franchisees are required to use. If so, include this in your franchising operations manual together with an outline of how they can be: 

• accessed;
• used; and 
• ongoing obligations of the franchisee. 

For machinery, you might also consider specifying: 

• how a user can use this equipment safely;
• how often to service it; and 
• who can service it. 

On the other hand, a software manual might include specific accounting software for payroll. Thus, any description should include:

• how often a franchisee should input data;
• what reports to generate; and 
• what checks to undertake. 

5. Marketing and Advertising

Your franchising operations manual should also cover all information relating to marketing and promotions. While you, as the franchisor, might run large-scale marketing campaigns for all your franchises, your franchisees should also have their own marketing tactics. Therefore, you should include approved media and marketing materials and a social media policy in your franchising operations manual.

6. Performance Targets

Your franchising operations manual may specify performance targets expected by your franchises. For example, these performance targets might relate to financial performance or customer service targets. Your franchising operations manual should include realistic ways franchisees can measure these targets and what failure to meet these targets means for franchises.

7. Customer Service Policies 

Your franchising operations manual should seek to govern all customer service interactions. You should have clear guidelines for how you expect your franchisees to interact with your customers, such as standards of friendliness or even upselling requirements. This section of your franchising operations manual should also include ways to handle complaints about staff members and a procedure for dispute resolution.

8. Personnel

Your franchising operations manual should include detailed information about personnel and other human resources matters. For example, you should have a list of position descriptions and requirements for each role. You should also include the most appropriate methods for hiring and terminating staff and best practices for onboarding and training new employees.

Further, your franchising operations manual should include policies concerning employee wellbeing, such as bullying policies and occupational health and safety standards to protect employees.

9. Premises

If your franchisees are expected to have specific fit-outs at their business premises, the franchising operations manual should include this. Additionally, it is common to provide a style or branding guide. Further, your franchising operations manual should provide information on the furniture and decor each location can have and business hours at each location.

10. Legal Notices

Your franchising operations manual must include general confidentiality and legal notices. This is because the manual is a confidential document that contains trade secrets. As such, you must emphasise this in the manual itself. You can do this by explaining the purpose of the manual and how its details are highly confidential. 

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Key Takeaways

Your franchising operations manual serves as the blueprint of your franchising system, making it important that it effectively communicates all critical information to your franchisees. Some key things you should include in your franchising operations manual include information relating to:

• company background;
• goods and services offerings;
• suppliers;
• software and equipment; 
• marketing and advertising; 
• performance targets;
• customer service policies; 
• personnel; 
• business premises; and
• legal notices. 

If you need assistance preparing a franchising operations manual, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions