FranMan

Update

2011-05-18T11:34:00.000-07:00

The horror! I can’t believe it’s been over a year since we’ve updated the blog. Well, much like the postman not wanting to go for a walk, it’s difficult to make time to write blog entries when we’ve spent the day writing great new manuals.

Besides writing new manuals, this year we’ve added more happy clients to our online manual roster. And with new clients come new requested features. One of the great things about the online manual is that when we add new features, typically developed from client requests, we can then roll them out across the platform at no additional cost to you. I think the coolest new feature this year has been a more robust tracking feature. It really makes tracking, approving and monitoring changes simple. As always, give us a call at (214) 717-5239 or shoot us an email if you have questions or would like to see a demo.

Selecting a Franchise: How well is the System Documented?

2010-04-15T11:43:00.000-07:00

Recently, on one of the franchisor forums, one of our clients, Thomas Scott of Showhomes, published the following article on how they are using our online manual. It’s a wonderful piece that shows why they are the leader in the home staging business and why they have so many well-informed and successful franchisees.

When you buy a franchise, you are really not buying a business.

You are buying a system for operating a business.

One of the most overlooked pieces of evaluating a franchise is how well the system is documented, how often is it updated and equally important, how accessible is the documentation.

Why is this important?
Most franchise companies use paper manuals – enormous 3-ring binders – that help you get your business off the ground. They may be broken into several smaller binders and labeled Operations, Marketing, Accounting or Grand Opening. These critical documents explain in detail how you open an office, ramp it up, generate revenue and at the end of the day, turn a profit. Following the ‘system’ in a franchise company is the quickest path to becoming a Top Performer.
Not following the system is almost always the quickest path to becoming an Under Performer. Remember, a franchisor doesn’t make money if you don’t so they have a vested interest in making sure you have a well documented, step-by-step procedure to becoming profitable.
Or at least they should. The truth is how do you know before you buy?

At Showhomes Home Staging, my company, we stopped using paper manuals all together. We use a very sophisticated and secure online manual that serves out information in the way you want – always accessible, searchable and secure. Our franchisees can use keyword searches to get basic questions answered, can access documents and can even suggest changes when they come across a hole so our documentation stays sharp 100% of the time. When we add new content, our franchisees get notification emails and have to check off they’ve read the new content so no one gets left behind.

On the franchisor side, we track how often every user accesses the manual, have metrics for how many pages they access and understand how long they spend on each page. This way we know what our franchisees want to learn and what parts are in use so we can always adapt. It also helps us understand what questions franchisees are interested in so we can develop more of what they want and need.

When I ask other franchise executives what percentage of their franchisees access their manual on a regular basis, the number is always shockingly low: 5-10% or less. That means a stunning 95% are not using the system documentation to help them make better decisions day-to-day. Think about it – a huge 3-ring binder is likely to sit on a shelf, gathering dust. Most franchisees have a need to access it but the format makes it difficult. As a result, they ask other owners or call their operations staffer with basic questions, over and over.

Does this hurt the franchisee? You better believe it! When that operations person – the most important person on the corporate team – is answering basic questions, they are not thinking proactively about how to help you grow. Face it – there are only so many hours in a day.

Because we pay attention to this, we know that 35-40% of our franchisees access and use our online manual on a regular basis. We know who does and who doesn’t and this helps our operations and field staff help franchisees grow. It makes for more specific conversations and because our documentation is online, it allows us to leverage the content whenever and wherever we are. Most importantly, it gives our franchisees the ability to help themselves 24 /7. We’d like that number to rise and because we measure it, it will.

Whatever franchise you look at, make sure to ask about the system documentation. Go beyond looking at the table of contents in the FDD. Ask franchisees if they use it on a regular basis and if it helps them run a better performing business. Ask if it is online – in today’s online world, it should be.

We used Kit Vinson from http://www.franman.net/ to help author our manual and port it online.--

Thomas Scott
VP Marketing and Systems Development
Showhomes Home Staging
http://www.showhomesfranchise.com/

Is it OK if your manual is out of date?

2010-04-12T08:00:00.000-07:00

“What’s wrong with having a Franchise Operations Manual that is a little out of date? We haven’t changed that much in the past 5 years. Nobody looks at it anyway, right?”

If you have ever thought or said those words, then I encourage you to keep reading because you might walk away from this with a new perspective on your Franchise Operations Manual.

So, what is wrong with having a manual that is a little out of date? There could be a lot wrong with it. Let’s start with the phrase, “a little out of date.” That phrase is relative. To some people, a little out of date might mean 3-6 months. Believe it or not, some franchise systems make it a point to update their manuals every month, and even every week. With the Online Manual by FranMan www.franman.net/onlinemanual.html , you can update your manual multiple times per day if you wanted to. However, the managers that stay on top of the operations manual that way are very few and far between. Usually the manual gets pushed to the back burner because there are always other pressing issues to deal with. This is because most people don’t see a direct correlation between the operations manual and the bottom line. But I digress. We’ll save that topic for another blog entry. Usually, the phrase, “a little out of date” means 5-10 years. I know, it sounds horrible, but I see it all the time.

Here is where the disconnect is. Most people see the operations manual as an event instead of a process. Somehow, somewhere, from somebody, most people are taught that the EVENT of producing an operations manual is completed once the manual goes to print. That is usually followed with a big sigh of relief, “Whew, man am I glad that’s done!” This, in turn, is followed with 5-10 years of silence – nothing but the crickets chirping.

On the surface, everything is fine until one day somebody in the home office decides to crack open the manual and learns that the procedures that are supposed to be the official System Standards are so outdated that they still refer to floppy disks and the up-and-coming World Wide Web. Laugh all you want, but I have seen it, and I have seen it in big systems as well as small ones.

Underneath the surface, however, everything is not fine. A great deal of damage is being done. Here is what’s happening. Existing franchisees have been conditioned to NOT use the manual, and new franchisees learn quickly to NOT use the manual. You might respond, “What? Nobody here teaches our franchisees to NOT use the manual.” Indirectly, you do. By not providing an up-to-date operations manual for your franchisees, you are teaching them that they will not likely find what they need when they reference it. Experience is the best teacher. If experience tells them that the document is useless, then they will conclude that in fact, the document is useless.

Additional damage is being done by the out-of-date manual when it causes franchisees to rely solely on the home office staff to answer all questions. That puts a burden on staff that keeps them from performing other necessary duties. They can’t get anything else done if they spend all day fielding questions from franchisees.

Finally, out-of-date franchise operations manuals can be a nightmare if you ever have to go to court, and the lawsuit involves one of your out-of-date System Standards. That can be very costly.

You can avoid all of this mess by resetting your perception of “manual=event” to “manual=process.” Your Franchise Operations Manual is a process that begins with the production of the manual, but never ends until the company does.

It really does matter if your manual is a little out of date. That’s why nobody looks at it anyway.

Do You "Know" Your Franchise Training Program

2010-03-31T20:15:00.000-07:00

Robert Bilotti with Novita www.novitaunique.com recently published a paper that was written for the benefit of the potential franchisee, entitled, “Discovery: The Questions a Potential Franchisee Should Ask About Training.” http://www.novitaunique.com/blog/ (March 26, 2010). In this paper, he does a fantastic job of educating prospective franchisees to ask questions of the franchisor about the training program that they might receive if they decide to invest in the system.

After reading that paper, it should make you think. When was the last time that you stepped back and took a good look at the training program that you provide to your franchisees? I am not talking about the table that you have included in the FDD about what you WANT the training to be like. I am talking about the product that the new franchisee actually receives. Is it organized? Do you provide sufficient training materials? Do you utilize all of the media available to you such as video, e-training, printed materials, etc.? Does your training program actually follow the Franchise Operations Manual that is supposed to be the master document of all of your system standards?

HAVE YOU ACTUALLY SAT IN ON AN ENTIRE TRAINING PROGRAM to “enjoy” the entire experience? Maybe you should.

You should read the article and ask yourself the questions that prospective franchisees may be asking you. Can you answer all of the questions? If you were a prospect, would you be satisfied with your answers?

In reality, you are probably not the best judge of the effectiveness of your training program. Even if you did take the time to sit through your entire training program (assuming that you are not the person that usually delivers it), there is still the problem of perspective. You have a base knowledge of your business that that should be more comprehensive than anyone else in the world. You are the “World’s Leading Authority” on your franchise system. That means that when a concept or procedure is explained in a training program, it could possible sound perfectly clear to you while the rest of the class receives the message with glassed-over eyes.

So, how do you get a fresh perspective on your training program? The best way is to solicit the opinion of a company that specializes in training, more specifically, franchise system training.

To quote Tom Peters, it is always a good idea to “Manage by wandering around” (MBWA). Take off the manager’s cap and wander around your business and observe. Observe your training process for yourself, through the eyes of the student, and see if it meets the same levels of quality that you expect in all of the other areas of your business.

Online manual

2010-03-23T06:29:00.001-07:00

It's been a busy month, thus the lack of updates, but if you haven't had the opportunity to look over our Online Manual by FranMan, you should make the time. If you mail out many franchise manual updates, it could save you a ton just on postage and headaches. And as always, if you would like a quick, no pressure, personal demonstration, give Kit a call or drop him an email.

IFA Fran Bowl

2010-02-07T17:16:00.000-08:00

The last, and possibly the best, party of the 2010 IFA convention was held at the Alamo Drafthouse. Unless you had seats at the 50 yardline, this was the best way to watch the Super Bowl. The event was appropriately named FranBowl.

The reason Franbowl was the best place to be was because the game was shown in a dinner theatre venue, complete with free food and drinks. Over 500 franchisors, franchisees, and franchise vendors attended the event and watched the Saints win the big game.

2010 IFA convention

2010-02-06T12:29:00.000-08:00

The exhibitors are working hard to put the finishing touches on their displays as the IFA exhibit hall nears its grand opening for the 2010 IFA Convention.

Integrated Video

2010-02-03T09:28:00.000-08:00

If a picture paints a thousand words, what can you say about a video? One of our clients has begun integrating YouTube video into their online franchise operations manual. While we’ve come to know YouTube a resource for funny videos, there are a tremendous number of very helpful training and instructional videos. For example, in explaining a blog, our client has integrated this video into their online manual.

You may think we talk too much about our online franchise operations manual, and we do. But we're really excited about all the new ways we've been able to help franchisors facilitate their franchisees to better understand and improve their business. If you’d like to see a personal demonstration of our online franchise manual, please give us a call or drop us an email.

Franchise Resolutions

2010-02-02T08:55:00.000-08:00

It is January 29th – Do you know where your resolutions are?

The New Year is almost over. Soon we will be into February, then on to the end of the first quarter. Did you make any resolutions relating to your franchise system? Did you resolve to:

be more responsive to the needs of your franchisees?

update your Franchise Operations Manuals?

market your system more aggressively?

join the 21st century with an up-to-date intranet portal?

If you did, how’s that working for you so far? As they say, the road to hell is paved with good intentions.

If you haven’t yet been able to stick to your New Year resolutions, then consider the idea that maybe you need help. Maybe you bit off a little more than you could chew. This doesn’t mean that your resolutions are were too big. It simply means that you might need some help reaching them. Don’t be afraid to ask a professional for help.

If you need to renew the internal structure of your franchise system so it can be more responsive to the needs of your franchisees, thus deliver a consistent customer experience system wide, then you need to talk to Bob Gappa at Management 2000. www.mgmt2000.com email: m2000@mgmt2000.com.

If you resolved to finally tackle the Franchise Operations Manual that is years out of date and you can’t seem to get to ball rolling, then talk to the professionals who do this for a living, every day; Franchise Manuals LLC. FranMan specializes in:

- Producing professional, custom Franchise Operations Manuals
- Updating existing operations manuals
- Hosting fully integrated and interactive online operations manuals
www.franman.net email: kit.vinson@franman.net

If you need help marketing your Franchise System, call the guy who knows more about contemporary marketing strategies than anybody else, Martin Greenbaum of Greenbaum Marketing Communications. www.greenbaummarketing.com/ email mg@greenbaummarketing.com

If you are looking for the most up-to-date platform to house your system’s intranet, then you should call nobody else but Amit Pamecha at FranConnect. www.franconnect.com email: amit@franconnect.com

Franchise Manuals Interview with David Bullock Part 1

2010-01-27T07:00:00.000-08:00

I am talking to David Bullock, the Director of Sales at Franchise Manuals LLC http://www.franman.net/ .

David, you are on the front lines with our potential client base. That means that you hear the good, the bad, and the ugly. One of the things I like to do from time-to-time is to visit with you about the responses and reactions to our product line.

Kit: David, for the sake of the reader, describe the companies that you spend the most time talking to. Are they smaller start-up franchisors, or are they the more established franchisors?

David: The majority of the businesses that I speak with are the more established franchisors. Many of them operate several different brands as well.

Kit: When you talk to them about their manuals, what are their major concerns?

David: You may be surprised to hear that most of them have the same concerns. The difficulties of keeping the manual updated ranks pretty high on the list, if not at the top.

Kit: Why are manual updates so difficult for the companies you speak with?

David: The reality is that most companies don’t have a system in place for accomplishing manual updates. In addition, these companies simply don’t have the human resources to devote to a manual update project. Most employees are already overloaded with a full workload. When the manual update project is added, there just isn’t enough time in the day.

Kit: What is the typical approach by a franchisor for updating their Operations Manual?

David: Typically, a company will pull personnel from other areas of the company in order to complete the project. The problem with this approach is that whenever you delegate the manual update project to different departments, you have multiple authors and it becomes a patchwork set of documents instead of a cohesive Operations Manual.

Kit: What have you heard about our newest product, The Online Manual by FranMan www.franman.net/onlinemanual.html

David: People tell me that the Online manual by FranMan is an incredible product. They love how user friendly the online manual is compared to the traditional paper manual. They also tell me that they love the real time updates feature that keeps their franchisees current on all the system standards. In addition, they say that the system eliminates the added expense of printing and distribution of manual updates.

Kit: David, if anybody reading this has any questions for you, how can they contact you?

David: They can call me at 214-448-6291, or they can e-mail me at david.bullock@franman.net

The Danger of a Poorly Written or Outdated Manual

2010-01-25T09:03:00.000-08:00

Does your Franchise Operations Manual updating procedure consist of merely changing the revision date at the bottom of the cover page? Do you have a file folder labeled “Manual Updates” that is filled to the brim with changes that you want to make when you have time to get around to it?

There are very few companies that I have encountered that have a systematic method of updating their manuals on a consistent basis. Based on the conversations I have had with franchisors, less than 10% actually keep up-to-date on revising their Franchise Operations Manuals. Why is this? The answers vary. Some people say that they don’t have enough time, others believe that the changes aren’t important enough to justify their time away from their primary responsibilities.

I am sure that if you “peel the onion” to reveal the real reason, you would learn that they don’t update their manuals because the updates don’t have a direct correlation to the bottom line of the company. If it doesn’t generate immediate profits, then it has to wait until things slow down a bit. The problem is that things rarely, if ever, slow down. The reality is that life in the office continues to gain speed until it reached terminal velocity. At that point, another employee is hired to help manage the chaos. Then, life in the office returns to its usual fast pace and the process starts over again.

So, there you are with a lean staff, everything running smoothly, except for the Franchise Operations Manual. However, since your manual doesn’t have a direct impact on the bottom line, it stays under the radar. But, here is what could also be happening under the radar.

1. Better, cheaper, more thorough methods or systems are put into place and not documented in the manual

2. Home office human resources are being wasted by calls from franchisees who are asking questions about new standards that were introduced but not updated in the manual.

3. Underperforming franchisees are not being held accountable to undocumented, outdated standards.

4. The potential for litigation grows larger and larger with every undocumented system standard.

5. Potential franchisees who are performing due diligence are “turned off” when they visit a site and see a tattered manual with old update pages hanging out of the pockets

All of these problems can be overcome with fully interactive, fully integrated, Online Manual by FranMan www.franman.net/onlinemanual.html

The Online Manual by FranMan is an HTML version of your Franchise Operations Manual. This means that your manual has the style and elegance of your corporate website, it’s not just a collection of PDF files.

The Online Manual by FranMan features instant, real time updates. This means that your manual is never updated and that your franchisees are always operating from the most current system standards.

The Online Manual by FranMan also features a tracking tool that allows you to know which franchisees have read the manual updates, and which franchisees need additional support.

Regardless of the reason, a poorly written or outdated operations manual is a liability to your company, but it doesn’t have to be that way.

Are You a Chronic Sufferer of E.D.

2009-11-02T09:00:00.000-08:00

Are you a chronic sufferer of ED. If so, it’s OK, you can talk about it in public now. You shouldn’t be embarrassed. Many people suffer from the same affliction. Of course, I am talking about Entrepreneur Disorder.

It wasn’t until recently that many studies have been conducted about entrepreneurs, or the almost debilitating disorder that oftentimes accompanies the personality traits. Now, thanks to a few brave entrepreneurs who weren’t afraid to have their private lives exposed to the public, we now know a lot more about both the individual and the disorder.

Let’s take a look at some of the personality traits of a successful “self-starter” businessperson, as well as the accompanying symptoms of the disorder.

Discipline
Entrepreneurs typically don’t do well in a highly structured environment. This means that they don’t really enjoy having somebody breathing down their neck all the time.

One symptom of E.D. that corresponds to this trait is irritability towards supervisors. This symptom is easy to spot, even by an untrained eye. If you ever see a co-worker planning the death of a superior, or speaking incoherently about torture techniques, don’t be so quick to jump to conclusions. E.D. is commonly misdiagnosed as schizophrenia and may also be mistreated with anger management techniques.

Confidence
Most entrepreneurs are extremely confident in their abilities. This means that they truly believe they can do anything. This not only includes those realistic activities such as managing a company or efficiently controlling costs, but it also includes flying, or even bringing the dead back to life. Lee Iacocca’s work with Chrysler is a good example of that.

Symptoms of E.D. that are related to Confidence may include an unusually swollen head and unbearable arrogance. Entrepreneurs suffering from this symptom are easy to spot in a crowd. They are the ones you see singing at the top of their lungs, “Anything you can do I can do better” from the Broadway play, Annie Get Your Gun.

E.D. is rarely ever diagnosed from this symptom alone because many non-entrepreneurs suffer from this symptom also.

Weak Interpersonal Relationships
Entrepreneurs tend to care about the accomplishments of a person more than they care about that person’s feelings. An entrepreneur could be accused of reducing all business relationships to a few simple questions: What have you done for me? What have you done for me lately? What will you do for me in the future?

Symptoms of E.D. related to this trait may include a lack of friends and excessive time alone. I am sure that many psychiatrists have misdiagnosed their patients with depression when they were really only blossoming entrepreneurs suffering from advanced symptoms of E.D. Just imagine if Ludwig von Beethoven’s doctors had been aware of E.D., we could be going to the golden V (Von Beethoven's) eating a Big Von, fries and a shake. The world will never know.

This quasi-fictitious disorder is somewhat serious and could be spread by human contact. Proper treatment is only a phone call away.

At FranMan, we work with entrepreneurs every day. Our staff members have been trained to work with entrepreneurs in their own environment. We nurture their traits and we have learned how to redirect those energies into more productive behaviors.

If you are, or if you know of anybody suffering from one or more of these symptoms, please call FranMan immediately at 214-207-2035. Operators will be standing by.

"To franchise, or not to franchise"

2009-10-26T09:00:00.000-07:00

"To franchise, or not to franchise: that is the question. Whether 'tis nobler in the mind to suffer the slings and arrows of outrageous fortune, or to take arms against a sea of troubles."

That modified line from William Shakespeare's Hamlet (written about 1600), sort of makes sense today if you have ever walked down the path of franchising. I have seen it be very difficult, though with the potential for great rewards.

The real question is, should you utilize franchising as a means of distribution of your product or service? Does it necessarily mean that you should franchise your business concept just because your business model is duplicable? I think that the answer to that question is a resounding NO! Not everybody has what it takes to develop and successfully manage a franchise system. A quick read of Michael Gerber’s book, E-Myth, will tell you all you need to know about that.

Think about it like a big box with a kitten in it. Everybody loves kittens, and if I asked you to be in charge of keeping a kitten in the box, you would have no problems doing that. What would happen if I threw in another 10 kittens for you to manage? Could you do that too? Some could and some couldn’t. Regardless of your kitten management skills, eventually, some of the kittens would start climbing out. Eventually, you would have kittens all over the place. Herding kittens is no easy job.

Here is a short list of some of the activities (kittens) that you will have to learn to do (to herd) simultaneously.

Manage one or all of your existing locations
Locate a qualified franchise attorney that you enjoy working with
Find a company to help you develop an operating manual of your procedures
Develop your system standards
Grow your existing business
Complete the FDD questionnaire for the franchise attorney
Get your logo registered with the trademark office
Endure a financial audit for the FDD
Purchase every domain name that closely resembles your company’s
Review rough drafts of your new FDD and Franchise Operations Manual
Manage one or all of your existing locations
Develop a franchisee training program
Determine how you will market your concept to desirable candidates. (It doesn’t matter how many people have told you to franchise, as soon as you are ready to offer the opportunity to prospective franchisees, everybody disappears.)
Put your marketing efforts into action
Screen the prospects
Interview the prospects
Manage one or all of your existing locations
Grant the franchise, sign the contract and collect the money

This is when it really starts to get time consuming

Help your new franchisee locate a suitable site
Work with the franchisee on the build out of the site
Manage one or all of your existing locations
Conduct a franchisee training session
Attend the grand opening
Screen, interview and close additional prospective franchisees

I am sure that the list above is not comprehensive, but it gives you an idea. It looks really difficult, and it is. Not everybody is cut out of the same mold, so not everybody is up to the task. That degree of multitasking talent is rare and requires a great deal of energy.

Many business owners are very creative and can generate great ideas for products and businesses. They may even be able to open a small business and provide their product or service to their community. However, when it comes to the multitude of activities that must be completed simultaneously in order for a business to develop, market, grant and manage franchises, the list of truly qualified business managers becomes very short. That is to say, you may not want to franchise your business concept just because your business model is duplicable.

Here is the good news. If you are reading this, then you probably already have a business of your own, which means that you are an entrepreneur. That means that you are one of a unique breed of people whose natural born personality traits include the ability to multitask at high levels, as well as an abundance of energy. If you are this person, then you have a much higher probability of success and you are more likely to reap the benefits, both financial and emotional, of operating a franchise system.

Top 10 Signs That Your Manual Is Outdated

2009-10-19T08:00:00.000-07:00

10. The dress code section forbids the use of parachute pants.

9. The “Technology” chapter of the manual talks about the up-and-coming “World Wide Web Internet” and “Electronic Mail Messages.”

8. Reproducing your manual involves a combination of printing, photocopying, and borrowing documents from your field staff.

7. The Management Documents section of the manual reads, “Copies are also available on Floppy Diskette.”

6. The franchise manual update folder in your file cabinet is full of updates that already need updating.

5. The process of updating your manual involves a chisel and a hammer.

4. The cover page of your manual says “Y2K Compliant.”

3. Your franchisees refer to the manual as “The Dead Sea Scroll.”

2. The last three times you made official updates to the manual, you only changed the revision date on the cover page (Don't laugh. I know that some of you have done that.)

And the number one sign that your Operations Manual is outdated is......

1. It was NOT written by FranMan, the leading producer of custom Franchise Operations Manuals, and the only place you can get "The Online Manual by FranMan."

Site-Visit versus Questionnaire?

2009-10-14T13:11:00.000-07:00

When a company comes to your place of business to assess the operations and procedures, do you believe it is possible for them to learn everything they need to know with only a questionnaire, or is a face-to-face site visit required? There are obviously some variables in play, such as who will be completing a questionnaire, and who will be conducting the interview.

Follow-up question: Has anybody ever heard of or experienced another method of information gathering?

Online Franchise Operations Manual

2009-09-22T07:12:00.000-07:00

Clients tell us that they can never keep up with manual updates. Alternatively, when they do finally get around to updating the manual, they can never be sure that the franchisees are reading them, much less inserting the pages in the appropriate places in their manual. Finally, they tell us that it is difficult to find exactly what they want in the manual. They say that searching for a specific topic is just too time consuming.

We have just finished developing a product that should solve those problems and more. It’s our online manual. Customized to your company’s look for seamless integration, the manual has all of the typical features you would expect to find in an online product. However, we have tried to implement great new features that will help franchisors and franchisees do their job better.

A couple of those include:

Franchisees will be automatically notified instantly of any changes to the manual, keeping them up-to-date on your most current system standards.

A tracking feature will allow you to know which of your franchisees have read the most current content. Field consultants can utilize this feature when they are conducting their periodic site visits and you franchise attorney will utilize this feature in the event that your company is ever involved in a lawsuit that involves the application of your system standards.

These are just a few of the features. I would like to invite you to visit franman.net for more information and a short video demonstration, or give us a call or email and we would be happy to provide you with a personal demonstration.

Purpose of a Franchise Operations Manual (Part Two)

2009-05-15T06:47:00.000-07:00

Continuing from yesterday's discussion, here are the final two functions of a Franchise Operations Manual.

Third, the Franchise Operations Manual will likely be the principal tool for training new franchisees. It is the “Your Company for Dummies” book. You have to assume that most of your franchisees will not have experience in your industry. They may not have any business experience at all. It is very common for a retired schoolteacher or a retired military person to invest in a franchise. This is not to suggest that school teachers or military personnel don’t have any business savvy, it is only to say that they were not formally trained in business and have not practiced it during their career. Your manual needs to be a document that not only trains them on your system of providing a favorable customer experience, but also one that brings them up to speed on how to manage a business.

Fourth, a well prepared documentation of the procedures that has helped make your company a success will help you sell your concept to potential franchisees. Put yourself in the shoes of a potential franchisee. If you received a Franchise Disclosure Document (FDD) that showed you that the company had a 50 page document describing all of its operating procedures, you might be a little concerned. You will also take your Franchise Operations Manual with you when you meet with potential franchisees for the first time. In that meeting, you will attempt to sell the concept to the prospect. Like all good sales people, you will likely have a few sales tools to assist you. You will probably present a PowerPoint presentation of the concept, you will review the company’s performance in the FDD, and you will present the Franchise Operations Manual as your proof that you have a well documents system for success.

Purpose of a Franchise Operations Manual (Part One)

2009-05-14T08:51:00.000-07:00

Before working with a new client, I think it’s a great exercise to review the functions of a Franchise Operations Manual. Over the next couple of days, I’ll review the main functions of a Franchise Operations Manual because it serves four main purposes.

First, the Franchise Operations Manual is the authority document of the franchise System Standards. The System Standards are the standard procedures that a franchisor requires of all franchisees in order to duplicate the customer experience in every location. The customer experience is the driving force behind profitability. If you can duplicate a favorable customer experience, then you may have a business that you can franchise. If you have a well prepared Franchise Agreement, it should refer to the Franchise Operations Manual as the System Standard. This way, as your system grows and your System Standards change, you only have to update the manual instead of updating the Franchise Agreement.

Second, the Franchise Operations Manual is the most effective tool for protecting your Brand. A company’s Brand is one of its most valuable assets. The Brand is also the asset that is at most risk when a company decides to franchise. When you franchise a concept, you are putting your Brand in the hands of other people, all of whom likely have different ideas about the best direction for the company. A properly prepared Franchise Operations Manual, with well defined and organized System Standards, will be the only tool you have to manage the Brand and control the franchisees when they try to act on their vision for what is best for your Brand.

I’ll conclude with Part Two tomorrow.