Do-It-Yourself Franchise Documents

A Franchise Operations Manual is vital to the success of the franchisee’s new

business.

The Operating Manual is the corporate guidebook and toolkit to help new franchisees and their employees duplicate the operational procedures that have made the franchisor’s business successful.

This manual contains, in written form, the complete instructions and methods needed to conduct the new business and is the blueprint for controlling the manner in which it is operated. Subjects include such as Preopening and Training , Marketing, Management, and Procedures.

The Operating Manual should incorporate details on the basic nature of the operation of the business and the philosophy which underlies it. It also spells out in detail what the Franchisor will expect from the Franchisee and what the Franchisee should expect from the Franchisor. A description of the franchise system explaining how the operation is set up should be included, along with a list of any apparatus or tools required for the function of the business, plus detailed instructions for operating and repairing it.

Operating Manuals are usually broken down into a number of sections covering such subjects as opening hours, forms, agreements, dress codes, pricing, buying policies, product quality, job descriptions, advertising, trademark usage, and insurance.

A complete Operations Manual, in template form, can be obtained in any of our Kits from our website. This manual covers subjects in the following areas:

The affiliation between the two parties and their obligations to one another. It includes a welcome and mission statement from the franchisor. Such things as the background of the franchisor and the organization of the franchise are disclosed. Royalties and Fees are discussed along with what records are to be kept, and what training will be provided by the franchisor. Trademark usage and signage are made clear.

The importance of the franchisor developing a business plan that builds the business of the Franchisee. This area usually covers the development of the business its description and organization, including start-up expenses.

Each franchisee operates its own organization within the franchise. A section of the manual should help the Franchisee set-up his corporate identity within that of the franchise. Such things as naming and determining the organization of the Franchisee identity.

Where will the franchisees get the capital to invest in the new franchise? The best Manuals will cover this subject for the Franchisee to further fund his franchise, after the initial start-up.

Site Selection Criteria, Sign Requirements, and Setting-Up

Floor plans should be addressed. Even such things as Scent and Sound, Utilities and Services, Electrical, Water and Sewer, Telephone and Internet, and Heating and Cooling should be touched upon. Sign design and legal considerations are also important and should be addressed in the Operations Manual.

All types of insurance and their value to the new franchisee should be explained. Such things as Liability Insurance and its importance to the Franchisor and Franchisee.

The importance of Legal Issues and Paperwork must be addressed to deal with the Franchises expectations and notification when dealing with the IRS, State Sales Tax Divisions, EIN, licensing, payroll and record keeping. Applicable to both Franchisor and Franchisee is taking care of the Tax Man. Government Regulations: Federal, State, and Local Regulations “red tape” are discussed, along with the Fair Labor Standards Act.

Developing a Grand Opening theme and timeline for the new business should be detailed. The franchisee should be completely indoctrinated in planning for and executing his Grand Opening.

The Franchisee is encouraged to develop a consistent plan for recruiting and hiring employees. Sources of good employees are pointed out, along with methods for recruiting the best employees. The process of welcoming new employees and bringing then up to speed is should be mapped out in the Operations Manual.

Daily opening and closing procedures and checklists are needed to be given. Customer service and the handling of complaints should be covered, along with sales training and overcoming objections.

Accounting controls and daily reporting procedures, along with information on accepting credit cards and even personal checks including discussions on security procedures are a must for any Operations Manual..

Employee Policy Manual, or Section should in any Manual detail employee policies, personnel procedures, and company rules

Franchise Documents