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

PacificBusinessAdvisors.net
Office: 818-991-5200
Direct: 818-991-9019