What information should a franchisor’s operations manual contain?

An operations manual should be provided by a franchisor, together with the franchise agreement. In combination they will detail how a franchisee should operate the franchised business both legally and practically.The operations manual is a crucial tool in relation to the operation of a franchised business and should detail how a franchisee should run the business to ensure that each franchise operates in a uniform manner.The exact detail in an operations manual will vary depending on the type of franchise, but will typically include matters such as how to use key equipment, stock management and operating procedures, IT requirements, insurance and reporting requirements, suggested trading hours, purchasing requirements, any required layout of any franchised premises or vehicles and guidance on merchandising, advertising and marketing. The operations manual may also detail employee requirements, from job specifications and uniforms to training and disciplinary policies.On a practical note, franchisors may use their operations manual to provide standard documents, such as stationery and ordering forms. A directory of the franchisor’s employees, job descriptions and contact details may also be provided and can be very useful.