What information is contained in the operational manual?

The franchisor’s operational manual will contain in a written form the complete systems and method for conducting the franchise business.  The manual should contain an introduction explaining the basic nature of the operation and the business philosophy of the franchisor. It should set out in broad terms what the franchisee should expect from the franchisor and what the franchisor will expect from the franchisee.  There should follow a detailed description of the operational system, which explains how the operation is set up. There should also be a section dealing with the equipment that is required for the operation of the business. It should give a detailed explanation of what the equipment is, what it does and how to operate it.  There will follow the operating procedures, which may deal with staff and training, purchasing policies, product and service standards, accounting and reporting, advertising and marketing, insurance and stock control. There may also be a section setting out the standard forms used in the franchise business, such as customer contract forms and contracts of employment.