In order to franchise your company, you will need an established track record of success and profitability. You will also need an operating manual that contains every detail a franchisee will need to be successful. If you currently operate several locations chances are you have a good start on your operating manual. But whether you have solid operating procedures or not, you need an outside analyst to go through your entire operation and to document every aspect of your organization from the perspective of someone who doesn’t understand your company or your industry.
When a prospective franchisee begins to look at your franchise, your operations manual will be the primary instrument he or she uses to make a decision as to whether or not they are a good fit for your company. So what’s involved in creating an operations manual? Well that’s a good question so we’re going to provide an outline here but it is not exhaustive. Depending upon your industry you may have very different requirements. The only thing that will remain constant in every operations manual is that it needs to be written so that any person can understand it. You know your business very well but your franchisee will not.
The franchise manual will be similar to a business plan and will include information concerning the infrastructure and management team that will be supporting the franchise. Your mission and vision for the future of your franchised organization will be an important component of your ability to lead a successful extended operation. It’s important for the franchisee to envision success, and the operations manual should reflect this in its detail and complete documentation.
One of the most important elements of support will be training for the franchisee as well as any on-site managers and employees. At Centerpointe, we are experts in online learning so every company that engages our services will have the benefit of having their operations manual converted into an online training program. This will greatly improve the marketability of your franchises while ensuring that your franchisees achieve the success required for a profitable investment. In fact, if we represent your franchise, online training and development are mandatory – and it is included in our program at no additional cost.
Some elements that will be included in your franchise manual are staffing including job descriptions for all key personnel, policies, and procedures concerning accounting, a complete list of all equipment necessary to run the company, and an in-depth marketing plan. You will want to regulate pricing, how your franchisees will go to market, how your trade secrets will be protected and most importantly exactly how the business is to be operated day-to-day. You will probably expect your franchisees to order from approved vendors, they may need special insurance or licenses, and you will include inspections or reports. You will audit your franchise operations periodically and your operations manual will explain exactly what to expect.
In addition to all the details of operating the company, you will provide a step-by-step guide on how to get started from the minute the franchisee says yes to the day the first dollar comes in. Of course, this includes all of the agreements, necessary financial instruments, how and where to purchase equipment and details on renting commercial space, signage and the set-up of the operation. This is not an exhaustive list of things to do. At Centerpointe, we actually work inside your organization and document your entire operation in detail in order to help bring your franchise offering to life.
Get started today by executing a non-disclosure agreement making an appointment for a consultation.