Design Your Franchise System Through Your Documentation
Introduction to Module Three
Franchisee Operations Manual
G9. Franchisee Operations Manual
SM17a: Examples from Operations Manuals
Franchisee Training Manual
SM18a: Franchise Radio Show 46, Why Training Counts Every Time with David McLean
SM18b: Franchise Radio Show 47, Optimizing your sales outcomes or getting your team to do what you want them to do, with Roger Simpson
Franchisor Operations Manual
G10: Franchisor Operations Manual
The Legal Documents
G11a: Questionnaire for your lawyer to help with your Franchise Agreement
G11b: Questionnaire for your lawyer to help with your Disclosure Document
SM20a: Video of Andrew Barr from Legal Vision discussing the legal aspects of a franchise
SM20b: Radio Show 59 – “Emma Jervis - Legal Agreements In Franchising – relationship between the franchisor and the franchisee
SM20c: Radio Show 62 – Emma Jervis - The Difference Between Licensing and Franchising - does it really matter
Unit Twenty One
Develop your Franchisor Business
Unit Twenty Two
Create a Pilot Franchisee Business
Words are used in so many different ways in the franchise industry. Some are legally defined and others just in general use. Before beginning it is useful to clarify the way we use terms and why.
Legally, through the Franchise Code of Conduct and Franchise Agreement Template, the
following terms are set.
Franchise System includes a business system in which a franchisor grants a franchise to a franchisee
Franchised Business is one franchise outlet
The Manual or Operations Manual is the franchisee operations manual and includes everything operational needed to run the franchised business, however crafted (audiovisual, graphic, text, software etc.)
Franchise Documentation includes the Operations Manual and all the legal documents and anything else needed to conduct the Franchised Business
A more extensive list of more commonly used terms is included in the appendices.
Franchise Simply definitions
I have extended these terms, however, because I consider it essential that you deal with both sides of a Franchise System, the franchised business operated by your franchisees and your franchisor business.
The Franchise System is the whole franchise group consisting of the franchisor business and the franchised businesses operated by your franchisees.
The franchisee outlet or franchised business will have:
a. Franchisee Documentation which includes:
i. The legal documents (Franchise Agreement and Disclosure Document
and any associated legal docs)
ii. The Franchisee Operations Manual which includes everything operational needed to run the franchised business, however crafted (audiovisual, graphic, text, software etc.)
b. The Franchised Business (goodwill etc.)
The franchisor business will have:
a. Franchisor Documentation which includes:
i. The legal documents (the franchisor is party to the franchise agreement)
and any other legal documents which make up the brand etc.
b. The Franchisor Operations Manual which includes everything operational
needed to run the franchised business, however crafted (audio-visual, graphic,
text, software etc.)The Franchisor Business (goodwill etc.)
Introduction to Module Three
Design the Franchise
Now you have the big picture of your franchise in place and you have built each of the detailed elements needed to structure and manage the group, it is time to pull everything together to create your Franchise System.
This is done in Module Three by creating two sets of documents.
The Franchise Agreement and other legal documents will structure the legal aspects of the group.
The Operations Manuals for franchisee and franchisor will determine how the business is managed. These documents need not be written on paper. Modern Operations Manuals are normally held in some form of cloud based software so they are easily accessible and updatable.
Franchise Simply offers access to FranchiseSimplySYSTEM, a software program designed to help you construct and deliver your operating systems simply and successfully. This system is designed so it is easily accessible for the right people at all times and so procedures can be simply updated.
The Operation Manuals, can include a number of separate parts.
For instance Manuals often refer to separate accounting systems held elsewhere.
And in more complex franchised businesses there are separate training processes which cover some training issues in more detail.
If separate systems do exist, they will probably need to be developed in association with the Operations Manuals, referred to in the Operations Manuals as appropriate
All of these linked documents and systems combine to make up the Operations Manuals for the Franchisor and Franchisee.