What is a Franchise Operation Manual?

Written by Sparkleminds

Are you a business owner, who wants to know what is a Franchise Operations Manual in Franchising your business? A Franchise Operations Manual is the DNA of a franchise system. Franchise Operations Manual is the foundation that governs franchise unit performance, procedures, and conduct.  It provides detail like the specifications, standards, and procedures with which franchisees must comply to operate the franchised businesses and consistently deliver on the franchisor’s brand promise. Let’s dive in to know what is a Franchise Operations Manual?

What is a Franchise Operation Manual?
What is a Franchise Operation Manual?

Nonetheless, franchise operations manuals are essential to franchisors because they ensure uniformity of customer experience and quality control across locations, act as a training tool for new franchisees, and serve as evidence that the franchisee is an independent contractor in the face of a claim against the franchisor that it is liable for franchisees’ errors.

They are an invaluable resource for franchisees because they serve as the franchisee’s daily reference tool. This gives the franchisee all the requisite knowledge to run the franchised business while simultaneously reducing the influx of emergent questions that the franchisor needs to answer.

What are the contents of the Franchise Operations Manual?

Confidentiality of the Operations Manual

This document contains confidential information and must remain private.  The introduction outlines what role the manual will play in the franchise system and how it needs to be used.  Furthermore, it updates any legal disclaimers worth mentioning.

Details about the Franchise

The manual is a guide to telling the franchisee about the brand.  It also helps to tell the new owners of the business.  The franchisees can use this manual to replicate the brand’s quality and standards. 

Using this, franchisees and their employees can follow the parent company’s policies and procedures, especially with customer service.  It gives details of the founders, management team, and protocols, followed by details of the Target Audience, services, and products offered.

Operations of the business

It communicates how the business operates.  The franchisor trains the franchisee on what the company does and the procedures to do it.  It describes the products or services offered in the business in the form of description and explanation.  Some of the information in the section include:

  • Services and products offered and how to provide it
  • Process of developing the products
  • Prices and pricing formula
  • Exclusive suppliers
  • Customer service and support
  • HRM
  • Accounting

Marketing and Development

The objective of this part of the manual is to inform the franchisee about their role in marketing their products and services within their region.  It educates the franchisee on how to promote and manage the business effectively.  It teaches them how to make use of tools provided to them to increase sales.  This section includes –

  • Marketing strategies based on case studies
  • Use of the company website
  • Social media and email marketing

Suppliers, Raw Materials, Procurement, and Signage

This section is to instruct the franchisees on the exclusive supply chain, and approved raw materials.  It shows the franchisees how to procure these raw materials from approved suppliers.  It’s got details of recipes, restrictions, and signage.  In some parts of this section you might find:

  • List of suppliers
  • Insurance for the maintenance
  • Approved raw materials and services
  • Construction and design layout
  • Using the management systems
  • Process of requesting the approval of other suppliers
  • Templates for answering emails and phone calls

To Conclude

The franchise operations manual varies from brand and industry.  But most of the operations have the same SOPs.  To find out more about how to franchise your business and get these processes in place, you can get in touch with our experts.

sparkle★minds, has over two decades of franchising and consulting experience, having catered to over 500+ clients to successfully convert their business into a franchise model.  Get in touch with us today!

Loading

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.