Developing a Franchise System

by Franchize Consultants

last updated 22/06/2022


The Franchise Bible

by Franchize Consultants

last updated 22/06/2022


Franchize Consultants explain why franchise manuals matter

Franchise manuals are often referred to as ‘The Franchise Bible’. Good manuals are the cornerstone of any successful franchise system, providing key background information, guidance and standards for franchisees and their teams to follow.

Franchisees are often investing tens or hundreds of thousands of dollars. Accordingly, they deserve to be buying into a franchise system that is just that – a system. The manuals are where that system’s high quality, well thought-out functions and processes are documented. 

And franchise manuals constantly need to be kept up-to-date, reflecting recent law changes as well as ongoing franchise system changes and innovations. The need for updates has become increasingly important given the impact of Covid and recent law changes. Here are some more key reasons why manuals matter.

Legal status

Franchise manuals are given legal status within a franchise system by the franchise agreement, which requires franchisees to adhere to certain operating requirements and restrictions. Franchise agreements are normally relatively brief and lack specifics about these requirements. Details about the franchise system therefore need to be contained within the manuals. 

Replicating the business model

How do franchisors ensure franchisees replicate a successful and established business model? First, by documenting that model in quality franchise manuals. They must then train franchisees in the systems, using the contents of the manuals as the reference. Finally, franchisors must ensure franchisees and their teams continue to adhere to important practices and standards laid down in the manuals.

Great franchise manuals are an obvious essential tool for enabling the transfer of knowledge, guidelines, requirements, key practices and tasks associated with the franchisee business model. Without a system clearly codified in its manuals, a franchise system cannot build a strong brand, nor promise good value to franchisees.  

Important manual sections

Franchise manuals need to achieve many purposes. They need to cover not only franchise system and operational information relevant and practical to franchisees – they also prescribe the franchisee’s function within the franchise system. 

Contents commonly include: business planning; products and services; marketing, sales and customer service; operations; technology; finance and administration; and legal obligations. Other functions may relate to different stages of the franchisee life cycle, like the introduction and key responsibilities, or, at the end, resale, transfer and termination. 

Many franchises will have a level of documentation that separates franchisee management from their operational and staff requirements. In turn, there is a need for franchise manuals to align with franchise training requirements.

Find out more Callum Floyd of Franchize Consultants

Dr Callum Floyd, managing director of Franchize Consultants, says, ‘Franchise manuals are the backbone of a strong franchisee business model and franchise system. It’s also important to develop franchisor manuals to ensure quality management from a growing franchisor support office team. 

‘Contact us to find out more about  how to develop, present and maintain great franchise manuals for your business.’   

See this advertorial on page 47 of Franchise New Zealand magazine Year 31 Issue 2.

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