Franchise Manuals or Franchise Operations Manuals are as known the franchise system’s design manual and how-to manual. Franchisors include comprehensive details regarding system standards, operating processes, suppliers, and requirements for the creation, promotion, and management of a franchised business in the operations manual.
Role of Franchise Operations Manuals
The franchise manuals serve as:
- A sales tool for potential franchisees, who use it to gauge your knowledge and the breadth of your systems.
- A manual for new franchisee training.
- A resource for experienced franchisees.
- You cannot enforce system standards without a quality control document that is legally enforceable..
- A tool for cost control that improves and systematizes operations to save both the franchisee and the franchisor money (labour control, purchasing controls, etc.)
- By assisting the franchisor in explicitly establishing the franchisee as an independent contractor and outlining crucial compliance areas, you can strengthen your defence against vicarious liability claims.
Steps to write an effective Franchise Manual in India
Writing a franchise operations manual can seem like a daunting endeavour because it is a lengthy document. However, the drill can be simpler by decomposing the information it should provide into its component pieces.
An operations manual’s contents can be as follows:
- Obligations and responsibilities of the franchisor.
- Liabilities and responsibilities of the franchisee.
- The bare minimum requirements for the franchise.
Below are the steps to take into account when writing an effective Franchise Manual.
- Describe the franchisor-franchisee relationship – Clearly state each party’s obligations, franchisor and franchisee. List the specifics of the parties’ commercial relationship in detail.
- Describe the company operations and processes in detail – The next step is to describe in full how the business runs after explaining the relationship between the parties and the requirements and procedures for setting up the franchise.
- Give full details about your company’s identification and products – Describe the company’s values, your brand positioning, and how you anticipate the franchisee to position your brand in their local area to help investors comprehend the franchise.
- List your company’s policies in detail – Every company has a policy as well as a set of guidelines. These guidelines must be explained to the franchisee in detail.
- Maintain a distinct section for HR-related rules and challenges – Employees are the foundation of any company. No matter how excellent the product may be, a firm cannot be successful without dependable personnel and an HR policy in place.
- Review your document in detail – Examine the manual in detail on completion. Asking your legal team to review it is a good idea. Make sure the branding is obvious and that the layout and formatting are constant throughout.
- Publishing the franchise operations handbook – The brand can publish the manual in a digital or traditional manner. A franchisor may decide to purchase numerous printed copies of the handbook and provide them to all of its franchisees and agencies, or they may decide to post it online or in another secure location where franchisees can access it.
Key pointers to remember when writing Franchise Operation Manuals
- Whoever is writing the manuals, should have experience in the matter. Therefore hiring a specialist is advisable.
- Since it contains most of the details listed in the franchise agreement, hence providing a detailed outlook of those key aspects is important.
- Draft in a lame man’s language, easy to read and understand.
- Since it contains the most important topics related to your business and its uniqueness, it needs to be protected legally, so that it is not misused.
Why Franchise Manuals are an important document for any business in India?
A franchisor must have a very well-documented and proven system of operation in the form of a franchise manual. This could be amongst the most valuable asset that the franchisor provides to the franchise system.
As an SME in India, Mid-Size Business or a Large Corporate, if you are starting to franchise, having your franchise manuals is critical to your success. The complexities of doing business in India should not be undermined.
If you expect your franchises to operate your brand successfully and you gain from your franchising in the long term, then getting your franchise operations manuals in place is extremely critical to your long-term success.
Even if you are contemplating international expansion, this will form the core of your global growth and expansion.
As an international franchisor, you may want to adapt your manuals for success In India. More often than not, business systems and processes need to be adapted for the coming decades and not the ones in which they were born.
Benefits of having the Right Manuals
- They form the core of what the franchise has to do and help in defining their roles clearly and eventually help them to run the franchise efficiently.
- Since the operation manual contains detailed procedures. It helps reduce time and effort for the franchisor and franchisee whilst assisting new franchisees.
- Operations manuals are very effective training tools, which ensure uniformity and consistency in the franchise system.
- When the operations and roles are clear, they form a strong foundation for the franchise agreement.
- We have noticed several times that while a franchisor goes about creating these manuals it helps them examine their businesses minutely and bring about improvements in the way they currently run their business.
- Operation manuals help the franchisor create a base system upon which changes are constantly made whilst markets & technologies change. It becomes easier to bring about these changes and put them across the entire system for efficient execution.
- We have also seen that these documents when done professionally form among the strongest tools for selling a franchise program.
How Sparkleminds can help in strengthening your business with Franchise Manuals
We can provide various, franchise manuals templates according to your business requirements.
Typically, these are the franchise manuals which will be needed.
- Pre-Opening Procedures Manuals – These manuals help anybody, even without industry experience; with the opening of a franchise system.
- Daily Systems & Procedures Manuals – These manuals focus on what needs to do, how and when and how to efficiently manage the day-to-day operations.
- Franchise Sales & Marketing Manuals – These manuals ensure that the franchise follows the recommended marketing activities which they must follow to ensure that the products or services are known to the catchment. It also focuses on how the franchisee has to manage the brand ethos and improve the branding in their regions for mutual benefits.
- Personnel Manuals – Ensure that the franchisees comply with the HR policies effectively. We ensure that they have the right systems within their setups to motivate and retain personnel. Things like personnel policies, job descriptions, hiring and training procedures, remuneration and benefits, terminations and all the other areas. These are so critical to the success of a franchise program.
- Accounting & Bookkeeping Manuals – Numbers and reporting of numbers form the essence of all businesses and hence the right accounting and reporting manuals go a long way in ensuring that there is proper synchrony in the entire business and there are no leakages. Hence making it imperative especially in the Indian contexts where you have a parallel economy. Also, other factors contribute to several systems. Some checks have to be followed for a successful franchise program
- Technical Manuals – In case the nature of a business is very technical and needs specific manuals for the same. We work with the franchisor, to be able to ensure that the franchisees can easily function with these technical manuals.
- Franchise Training Manuals – To specifically train your franchisees, employees of franchisees or for that matter the franchisor team. Each franchise system needs to have a specific training manual at all levels.
What’s Next? To Sum Up,
Then we would help you determine the contents of it. We would then compile the entire information and present it to you for your review and comments.
We also constantly work at revising and updating franchisor manuals either on an individual or on a turnkey basis.
Please speak to us to understand how you can create an efficient franchise system by having the right manuals to attract entrepreneurs from our portal to your business.