The Franchise Operations Manual contains specific information essential to the preliminary and ongoing operations of a franchise. It covers several very important functions in a franchise system. The franchise manual acts as:

• A sales tool for potential franchisees: demonstrating your knowledge and the strength of your systems

• A training guide for new franchisees

• A reference tool for established franchises

• A legally enforceable quality control document – ​​without it, you cannot implement the principles of the system

• A cost control tool – saving both the franchisee and the franchisor money by improving and systematizing operations (labor control, purchasing controls, etc.)

• An important part of your defense in sensational liability actions: helping the franchisor clearly determine the franchisee as an independent contractor and explaining important areas of compliance.

• A conventional franchise operations manual (sometimes divided into multiple manual documents) will contain between 300 and 500 pages and should contain dozens (and perhaps hundreds) of photographs representative of the franchisor’s operating standards.

In addition to the Operations Manual, we will also help create formal training programs for franchisees. These training programs are intended to help the franchisor constantly train franchisees and are most valuable to businesses with more aggressive growth plans. A typical franchise training program will include

Diaries day by day and hour by hour

• PowerPoint slides covering each class topic in detail

• Recommendations regarding the use of external resources

• Role play exercises

• On-site activities and practical training procedures

• Questionnaires and tests that will document your franchisee’s integration of the information you are providing

Other items that can be developed include:

• Training-of-trainers manuals and programs – intended to help franchisees train their own staff on an ongoing basis

• Pre-opening manuals – designed to help franchisors whose businesses are heavily site dependent to establish, negotiate and build franchise locations

• Master Franchise Operations Manuals: These will include information on franchisee recruitment, franchise sales, pre-opening support, ongoing support, and reporting for those franchisors with international licenses or master franchises or those doing business domestically using a area representative (or development agent) calendar

• Franchise Employee Training Videos – Video is a great device for communicating quality standards to the lowest levels of the business.

Can your business be franchised?

Can your business be franchised? If you have a thriving business that is receptive to a regional or national marketing system, then franchising may be the right choice. To help you determine if your business could be a franchise, consider some of the qualifiers outlined below.

First of all, evaluate yourself as a potential franchisor. Franchising is more than the business of selling services or products. He will also be a mentor, coach and perpetual supporter of his franchisees. He will also collect an initial fee to get the franchise up and running and then receive royalties over the life of the franchise.

Always remember to allow your individual franchisees the flexibility to run their own businesses and always allow them to act as independent business owners, not employees. It is important that you carefully set out the guidelines for the franchisee relationship in the original agreement, franchise disclosure document, and all communications with franchisees.

Don’t consider franchising your business unless you have an identified local market for your product or service. Marketability is established by need, and need is determined by competition. If you have a unique way of operating a business and have a unique business model, it is feasible that you can franchise it.

Demand is the essential force here. It is as central as the singularity. Your unique product or service should be desired not only by the business people who want to buy franchises from you, but also by the people who will buy products or services from those franchisees. If your product or service is relatively new and is not widely offered by anyone else, but it is in demand, you first need to determine where your products or services would sell, based on requests from your current customers.

If your product or service is not new, you can hire market research companies to create reports on the types of consumers in various regions. You can also conduct your own study on the Internet. Government agencies may also provide demographic information and market research data. The US Department of Commerce’s Bureau of Economic Analysis and the US Department of Labor’s Bureau of Labor Statistics have conducted extensive studies of regional consumer behavior. Search for “consumption habits” on these government websites. If your product or service is unique or in demand, ensure this uniqueness by using a trademark, for a product, or a service mark, for services, so that the public connects your product with a particular trademark. Apply for a trademark as soon as possible, before the first franchise agreement is offered and reached. Determine that no other entity has already obtained the rights to your brand. You can do this for less than $600 by contacting one of the many trademark search firms or by going online at http://www.uspto.gov.

Before starting your franchise plan, prepare a comprehensive business plan so you can see the financial outlay each new franchisee will require to get up and running; then compare that to the income you can expect to receive from fees, royalties, and sales. Include costs that are specific to the franchise, such as operating costs, such as salaries and benefits for you and head office employees, trainers, and sales staff; as well as rent, office equipment, car allowances, and travel. Include the cost of finding franchises: advertisements, travel to franchise shows, preparation of brochures and videos, and entertainment. Add an appropriate amount for initial and ongoing legal, accounting, and advertising fees.

Be very conservative about the time and income you need from your franchisees. You will have determined the mix of franchise fees, royalties, and sales of products or services that will generate income from your franchisees. Estimate when you expect this revenue to be paid, rather than basing your predictions on how your business has performed in the past.

Franchisor Evaluation

Before deciding to invest in a franchise, it is important to evaluate all aspects of the franchise program. This includes evaluating the franchisor. Specifically, you want to know how they govern the franchise program and whether they deliver what they promise. One of the most helpful ways to evaluate a franchisor is to get feedback from current and former franchisees. There is a secondary method of conducting a franchisor evaluation, which can supplement the feedback obtained from franchisees.

Alternative ways to evaluate the franchisor:

• How does the franchisor carry out the procedures for the sale of the franchise?

• How a franchisor accomplishes the sale of new franchises can say a lot about the franchisor.

• Was your request for franchise information handled in a timely manner? If you had to wait more than a week to get an acknowledgment of your interest in the franchise or franchise information, it could mean a lack of staff on the part of the franchisor. The franchisor must have a digital information package that can be emailed to eligible applicants.

• Do your emails or calls to the franchisor’s sales staff generate a prompt response?

• If the franchise representative takes an assertive sales approach, it could be an indicator that the franchisor is trying to promote rapid growth.

• Does the franchisor or its representative respond quickly to your emails and phone calls?

• If a phone call or email does not result in a response within 2-3 days, it could indicate a lack of management or professionalism on the part of the franchisor and its staff.

• Are your queries being answered?

• When searching for a franchise opportunity, it is common for a franchise applicant to have a series of questions. A timely response to a question or request for information from the franchisor means that the franchise operation is well organized. This indicates a well-managed organization.

discovery day

Many franchisors have a Discovery Day, which is an opportunity to assess the franchisee and answer any issues or queries that haven’t been mentioned before. Consider the following items that may be an indication of the franchisor’s performance.

• Did you receive a Discovery Day outline before the meeting?

• Did you receive travel and accommodation assistance for your visit?

• Will you meet with a cross-section of the franchisor’s organization?

• Was the Discovery Day process professional or very sales-oriented?

An important but somewhat difficult area to assess is the franchisor’s business culture. After working alongside the franchisor’s staff for many weeks, one should have an idea of ​​what it is like to work with the franchisor. A franchise relationship can last for many years and there must be a proper relationship between both parties. If there are any concerns on the part of the franchise candidate, then it may be best to reconsider. Combining franchisee feedback with an evaluation of the franchisor will provide the franchise candidate with the ability to make a more intelligent evaluation of a franchise opportunity.