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The Operation Manual


Areas covered in the manual

The operating manual is the "bible" of the franchise. It contains, in written form, the complete method for conducting the franchised business. The operating manual is also part of the franchise agreement, defining and controlling the manner in which the business must be operated and setting out the franchisee's and franchisor's commitments to one another.

Depending on the type of business, the provisions below are what might be expected in most manuals. Additional procedures or variations of those below could also be included.

Introduction. Introductory remarks explaining the nature of the operation and outlining in broad terms what the franchisor and franchisee expect from each other.

Operational system. A detailed description of the operational system, explaining how it is set up and how the various constituent elements fit in with each other.

Equipment. A section dealing with the equipment required to operate the business, describing the specific pieces of equipment, how to use them and how to deal with problems when they occur.

Operating instructions. This area may be broken down into a number of sub-sections covering matters such as personnel, accounting, customer service, advertising and promotion, product preparation, pricing and purchasing policies, stock control, insurance and payment of fees.

Contact directory. A directory of contacts within the franchise organisation as well as contact details for suppliers, service centres, etc.

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