In a franchise agreement, the Operations Manual is an integral annex that contains the complete and detailed system of conducting the franchised business. It defines the manner in which the business must be operated and forms the cornerstone of the franchisee's and franchisor's commitments to one another. The primary function of the franchise manual is a reference in the day-to-day operations of the business and a training tool. It is integral in promoting and ensuring a unified set of standards in the franchise network. The users of the manual are the present and future employees of the business. Hence, if the manual is created in an
insufficient and less organized manner that the users cannot to find the needed information or the structure is confusing, it only
defeats the sole purpose of creating a manual.
An Operations Manual contains the policies, procedures, and work instructions that constitute the manner in which the functions of the franchise business are executed. Being the bible of the franchise, it must be ready before the first franchise is sold. Careful planning and execution must go into its preparation. It must be organized, well written, detailed, and reader-friendly.
While conceptualizing the first formal expression of the business operations, the company must seize the chance to re-examine their processes and systems, take stock of their errors and make the necessary improvements or fine-tuning so that the system that will finally see print in the manual will be a refined version of the operations, thereby making the business "franchiseable".
Making an outline of the topics and sub-topics for the operator's manual will be useful as a guide when the writing process commences. Essentially, there should be two kinds of topics: tasks and information topics. The tasks topic should contain the description of activities implemented by employees in particular roles, the characteristics of each role, and how these roles are inter-dependent in attaining overall efficiency. Detailing the different roles in the organizational set up like this is important to being able to duplicate the business elsewhere, where other people will be trained to perform these different roles. The information topic must provide company background, management style, concepts, and performance standards.
A comprehensive Operator's Manual is expected to contain the provisions below, with additions or variations depending on the type of business:
Introduction - a brief overview of the nature of the business to give the reader a general idea
About the Company - its history, present management, and company vision
Franchise Training Requirements - training programs prior to opening of outlet. It must contain all the information required for newly hired and existing employees to use as a reference in training, reviewing, and developing of skills.
Staffing the Franchise - position descriptions, qualifications required for each position
Operational System - a detailed description of the entire system of operation and the manner the different elements are related with each other
Equipment Used in the Business - a detailed explanation of how to operate them properly, and the steps to follow in case troubles occur
Operations Instructions - covering administrative, marketing, purchasing, pricing, and inventory procedures and policies
Office Policies - such as employee appearance and decorum, handling customer complaints, quality of service, and proper hygiene
Directory - a listing of suppliers, service centres, central management personnel, and other franchises
When the outline is finalized, the actual writing process begins. This procedure involves data gathering, drafting, editing, revising, and redrafting. Once the final draft and layout are approved, the operations manual is ready for publication.
A good Franchise Operations Manual must accomplish three things: (1) effectively capture in writing the successful system of the business, (2) explain the step-by-step procedure of operations in a clear and concise manner, leaving no room for misunderstanding or misinterpretation, and (3) present the business in such a way as to make it a unit that can be successfully duplicated in another location.
A well-written operations manual must reflect a reliable business operation. It must capture in print the efficiency, success, and profitability of the company. The operations manual can become the basis of a highly convincing marketing package to offer to prospective franchisees.
Alternatively, a business may opt to hire a business analyst or technical writer to assist with creating their manual with high levels of objectivity and professionalism.
