Franchise Operations Manuals

Under California law, a franchise operations manual must be provided to a prospective franchisee by a franchisor before he or she makes a decision to invest. In addition to being a legal requirement, it is also a practical requirement because a potential franchisee will need the information included in the operations manual to make an informed decision.

Some of the subjects covered in a typical franchise operations manual include:

  • Accounting and Software
  • Audits and Inspections
  • Cleaning Requirements
  • Company Hierarchy
  • Daily Operating Procedures
  • Employee Appearance
  • Employee Training and Recruitment
  • Employment Laws/HR
  • Equipment
  • Grand Opening Procedure
  • Handing Complaints
  • History of Franchise and Goals
  • Insurance
  • Inventory
  • Job Descriptions
  • Licenses and Permits


  • Lines of Communication
  • Management Forms
  • Marketing and Advertising
  • Operating Procedures
  • Operating/Closing Procedures
  • Preferred Vendors
  • Reports
  • Resale or Transfer
  • Responsibilities of Parties
  • Safety
  • Security
  • Staffing and Payroll
  • Standards and Practices
  • Trademark and Logo Usage
  • Unlawful Discrimination
  • Workflow Charts

While this article addresses the subject of franchise operations manuals, any seller of a business would be well served if he or she provides a prospective buyer of their business with such a manual.


Franchise Disclosure Documents (FDD)

Sample Franchise Disclosure Document (FDD) Table of Contents
Office: 818-991-5200
Direct: 818-991-9019