The operations procedures and training manual

We noted earlier that this manual embodies the franchisor’s experience in written form and is intended to guide and assist the franchisee in the daily running of the business.

Its purpose is also to protect the business as a whole by ensuring that product and service standards are maintained as well as uniformity throughout the network.

In preparing the manual, there is a strong relationship between it and the franchise agreement. The rights and obligations of the franchisee are normally set out in the agreement. The

Operations Procedures and Training manual, on the other hand, sets out the way the franchisee has to perform to comply with his/her obligations.

It is therefore advisable that when drawing up the franchise agreement, insight into the Operations Procedures and Training manual is necessary to ensure a logical fit between these two important documents.

It is also important to preserve both the franchisor’s right to modify the manual and the enforceability of the agreement. To do so, the agreement should specifically refer to the manual and obligate the franchisee to comply with it.

The agreement should permit the franchisor to make changes from time to time, as the franchisor deems appropriate, to preserve the goodwill and business advantage of the franchise and the franchise system.

The Operations Procedures and Training manual is the single most important document that a franchisee receives from the franchisor.

The operations information refers to how things work while procedures refer to the manner of conducting the business.

The extent of the contents in the Operations Procedures and Training manual will be heavily influenced by the nature of the franchise and the complexity of the systems and procedures involved in its operation.

The manual can therefore consist of one or a number of volumes.

The manual must be written in clear and simple language and presented in such a way that franchisees actually want to use it.

The following are some basic areas generally covered in the manual. First, the day-to-day operational procedures in each facet of the business. Second, product knowledge and technical issues unique to the business.

Third is administration and control of the business. Fourth are guidelines on staff management while last are health and safety issues.

More subject matters are often added to this basic list by the franchisor as may be necessary to protect the specific franchise system.

The manual needs to be managed properly by the franchisor. It documents in detail the franchisor’s operating system.

Having control over it is therefore of utmost importance for the franchisor. Some directives in this regard: first, the manual remains the exclusive (intellectual) property of the franchisor and it should only be given to franchisees on loan and only for the duration of the franchise agreement.

Second the franchise agreement should have a statement to the effect that franchisee is expected to return the manual at the end of the agreement.

Third, to minimize misuse of the manual, it is suggested that where hard copies are used, each manual is numbered.

These numbers are recorded and when receiving the manual, the franchisee must sign against the number allocated.

Fourth, the franchisee must be made aware that they are not permitted to pass the manual on to anyone or to reproduce the manual in any format.

Finally, the franchisee must sign a confidentiality undertaking that the information will only be used for the franchise operation and that the document will not be reproduced, in part or in whole, and in any format whatsoever.

The writer is the Lead Franchise Consultant at Africa Franchising Accelerator Project.

We work with country apex private sector bodies to increase the uptake of franchising by helping indigenous African brands to franchise.

We turn around struggling indigenous franchise brands to franchise cross-border.

We settle international franchise brands into Africa to build a well-balanced franchise sector.

We create a franchise-friendly business environment with African governments for quicker African integration.

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