What is an operations manual?

When you invest in a franchise opportunity, you’re not just buying a business – you’re joining a system. To succeed, you need to understand what is expected of you and how to follow the franchisor’s procedures and systems. This is where an operations manual comes in, giving you all the instructions you need to run the franchise properly from day one.

We asked experts in franchising to explain what you need to know about this important document.

What is a franchise operations manual, and why is it important?

The operations manual is the blueprint for running a franchise. Vicky Wilkes, head of legal at Aston Villa Football Club, calls it “a crucial tool in relation to the operation of a franchised business.”

It provides a step-by-step guide to running the business consistently: “The operations manual is often how a franchisor ensures consistency across its franchise network, so that a customer knows they will receive the same ‘experience’ whichever franchise business within the network they use,” says Wilkes.

What information should it typically contain?

Shelley Nadler, legal director at Bird & Bird, breaks it down: “The franchisor’s operations manual will contain in a written form the complete systems and methods for conducting the franchise business. It contains the franchisor’s ideas, know-how and trade secrets and the day-to-day instructions for the operation of the franchised business.”

Key elements include:

● An introduction outlining the business philosophy and what the franchisee should expect.

● Detailed operational systems, including staff training, purchasing policies, product and service standards, accounting, reporting, advertising, marketing, insurance and stock control.

● Equipment guidance: what is needed, what it does and how to operate it.

● Standard forms used in the business, such as customer contracts and employment agreements.

Wilkes adds practical points: “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.”

Ultimately, the operations manual is your roadmap to running a successful franchise. By following its guidance carefully, you can maintain the standards and consistency that the brand is known for, avoid common pitfalls and focus on growing your business with confidence.

Treat it as a living resource – one that not only tells you what to do, but helps you understand why it matters for the long-term success of your franchise.