Operations Manual For Rosengrenska

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Franchising World March 2007 The franchise operations manual documents the business model and the business model institutionalizes. OPERATIONS MANUAL TEMPLATE This operations manual provides important organizational information as well as operations procedures for ORGANIZATION.

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Franchising World March 2007 The franchise operations manual documents the business model and the business model institutionalizes the buying experience and removes the element of surprise from the many customer experiences occurring every day in multiple locations. By Robert Gappa From time-to-time every franchise system finds it necessary to update its operations manual. The critical concern of an operations manual is its use. Existing franchisees often believe that the operations manual is part of what they bought and therefore it is theirs and because they bought it, they can either implement it or not.

At best they believe it is the franchise company’s “recommended way of doing things.” But, “if my market is different then I can ignore or adapt what it says to my circumstances.” After all their belief is “it is my operating system and I bought it.” How to deal with this belief is not the subject of this current article, but must be stated as the context for operations manual revisions. The way a new update of the operations manual is distributed can somewhat offset these beliefs. The most obvious benefit to documenting a system is that it allows company or training staff to teach the system the same way each time. It provides a resource to each franchisee that once he or she leaves training, helps him or her continue doing things according to the operating system. The Philosophy of the Business and of Franchising In the introduction of the manuals, one must take the opportunity to establish and reinforce the brand’s position relative to: • The operations manual contains the intellectual property that franchisees have been granted the right to use, and that as the franchise company, it has the right and the obligation to evolve the business model and make innovations to it whenever competitive pressures necessitate it. • Its customer-centric philosophy is manifested in its mission, core values, vision and strategy positioning statement. • Its customer-centric philosophy is institutionalized in its operating manual which institutionalizes its business model’s administrative, marketing and operating systems, policies, procedures, processes, programs and practices.

• Its focus is on the importance and preeminence of creating customer experiences that result in very satisfied and loyal customers who return frequently and promote the brand to others. • Its desire is to emphasize the requirement that the business model exists to create value for the customers. These are all items and points covered in the granting process and during new franchisee training, but now are memorialized as part of an intellectual property in the operations manual. There are other subjects that pertain to the franchisor-franchisee relationship. These are spelled out, primarily, in the license agreement, though spelling them out in plain English at the beginning of the operations manual is very helpful. Again they are part of the intellectual property and therefore make up the obligations of the franchisee.