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Can I see a franchisor’s operations manual before I agree to invest in the business?
The operations manual is a very important document and is usually closely guarded by a franchisor. It provides detailed instructions of how a franchisee should operate a particular franchise business, including know-how and details of how the franchise concept attains its uniqueness.While a prospective franchisee will want to review the operations manual to see what is required to operate the franchise business and assess any costs that may be involved that are not apparent from the franchise agreement, a franchisor will be reluctant to let any prospective franchisee review the operations manual because of the nature of its content. A franchisor is therefore unlikely to release a copy to a franchisee without the franchisee either signing the franchise agreement, which includes confidentiality provisions, or a separate confidentiality agreement.
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