| Franchise operations manuals may seem daunting, | | | | expert’s role should be limited to a planning and |
| especially for a company that has never written an | | | | editing capacity. |
| operations manual before. Bewildered by the new | | | | |
| business of franchising, with its legal requirements, | | | | Three Easy Steps For Drafting A Franchise |
| franchise disclosure documents, operations manuals, | | | | Operations Manual |
| training programs, etc., many companies delegate | | | | The drafting process begins with planning and |
| responsibility to a high-priced franchise consultant. | | | | developing the Table of Contents for the franchise |
| But using someone to write your franchise operations | | | | operations manual. This includes making sure all the |
| manual who knows literally nothing about your | | | | appropriate chapters and topics are included, and the |
| business, never makes any sense when everything is | | | | inappropriate ones are not. Knowledge of franchise |
| considered objectively. And, besides a hefty price tag | | | | management best practices is essential here, and |
| of $20,000 or more to write the manuals, using | | | | that's why a franchise expert's input and planning is so |
| franchise consultants brings another, expensive result | | | | important. Because most franchise operations manuals |
| – legal risk. Here are some drafting tips and | | | | are incorporated by reference in the franchise |
| strategies from a recognized, international franchise | | | | agreement (which is a franchise industry best |
| expert. | | | | practice) the franchise contract is also reviewed. |
| Why Franchise Consultants Are Risky Business | | | | Some operations-specific information may be |
| Paying someone who knows nothing about your | | | | inadvertently included in the contract by the attorneys, |
| business, and having them learn it from scratch at your | | | | which is not a good thing. This needs to be moved out |
| expense is really just common sense. Using franchise | | | | or appropriately amended. |
| consultants for what is a relatively easy and | | | | The second step is giving the person(s) within your |
| straightforward task has never made any sense - | | | | company who have drafting responsibility samples of |
| except to the franchise consultants who charge | | | | operations manual writing styles, guidelines and |
| exorbitant amounts to write an operations manual. | | | | instructions. With these, they can begin drafting each |
| It’s one of those little franchise secrets that the | | | | chapter of the manual using their extensive operational |
| consultants don’t ever mention or discuss. | | | | knowledge of the day-to-day, week-to-week, etc. |
| Using a franchise consultant to write a franchise | | | | aspects of your business. |
| operations manual also carries legal risk. The principal | | | | The third and final step is having the franchise expert |
| legal risk comes from including inappropriate topics, | | | | review each chapter as it is drafted and comment on |
| chapters and policies that are commonly found in | | | | the professionalism and sufficiency of the chapters |
| company-owned, chain operations manuals. If these | | | | from a franchise industry best practices and franchise |
| are included, as they often are in franchise operations | | | | operator perspective. |
| manuals, very significant franchise liability issues arise. | | | | Summary |
| Because the franchise consultants are not franchise | | | | The first couple chapters are typically the hardest to |
| attorneys or experts, they are entirely oblivious to this | | | | draft, as you or your management personnel learn and |
| risk. They don't know where the bullets come from in | | | | apply operations manual drafting techniques under the |
| franchise litigation. As a testifying and consulting | | | | guidance of a professional editor. But after that, it’s |
| franchise expert, I routinely find franchise operations | | | | smooth sailing through the balance of the document. |
| manuals drafted by franchise consultants and | | | | This approach produces a professional, easy to use |
| do-it-yourself manuals containing inappropriate chapters | | | | and update franchise operations manual. It also |
| or topics. And, because they rely on boilerplate | | | | ensures the most efficient use of resources and talent, |
| manuals used for other clients, where (hopefully) all | | | | and eliminates having to pay a franchise consultant |
| instances of burgers, for example, are searched and | | | | $20,000 or more for this relatively simple task. |
| replaced with tax returns, the end result is not only | | | | Whether or not a company ultimately franchises, the |
| dangerous - it is also very mediocre. Giving a mediocre | | | | process of planning, documenting and implementing |
| operations manual to a franchise owner who has | | | | standardized operating procedures and systems via |
| invested hundreds of thousands (or in some cases | | | | operations manuals, like blue chip franchise and |
| millions) of dollars in your franchise model is definitely | | | | non-franchised companies do, makes any firm operate |
| not the best way to start or ensure a smooth | | | | more efficiently and competitively. In a franchise |
| franchise relationship. | | | | environment, it ensures consistent and uniform |
| | | | operations, helping personnel with different skills learn to |
| The Best Practice Approach To Drafting Franchise | | | | perform tasks in a consistent manner throughout the |
| Operations Manuals | | | | franchise network. Finally, it's important to realize the |
| Besides the expensive and legally risky approach there | | | | process of writing a franchise operations manual |
| is another, best franchise practice approach based on | | | | never stops. As the business model evolves, so must |
| almost three decades of writing, editing and reviewing | | | | the operations manual – the ultimate reason why |
| hundreds of franchise operations manuals. The | | | | writing the manual yourself to begin with makes |
| essence of this approach is also common sense - | | | | imminent common sense. As one franchise company |
| letting the true expert in your business write the | | | | executive observed "I found that not only was writing |
| manual. Typically that person is the founder of the | | | | my own operations manual a cost savings; it was |
| business, or a small team of management personnel | | | | imperative."copyright 2008-2009, Kevin B. Murphy, B.S., |
| who know business operations inside and out. While a | | | | M.B.A., J.D. |
| franchise expert should be involved in the process, the | | | | |