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What information should the operations manual include?
The franchisor’s operations manual will contain in a written form (electronic or hard copy) the complete systems and method 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.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 vice versa.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 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 may also be details of suppliers and maintenance companies. There will follow the operating procedures, which may deal with, among other things, 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.
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