Every franchise needs an Operations Manual. It is the Bible that the franchisees will follow closely, step by step, to set up and operate their business. Franchisees should be required to follow the format set out in the Operations Manual.
The Operations Manual must be well put together so that it makes setting up a franchise as smooth and problem free as possible as well as being easy to read, understand and use. It should be a document which is comprehensive and cover every contingency that may crop up in the course of doing business.
The more thorough the Operations Manual the less time and energy the franchisor will need to invest in helping the franchisees.
All aspects of conducting business need to be spelled out including:
- The obligations of the franchisee
- Setting prices
- Advertising techniques and issues. Includes content media and use of brand imagery.
- Stock control
- Ownership, leasing and maintenance of equipment.
- Administrative and accounting practices
- Sales methods
- Service delivery and timing
- Security
- Record keeping
- Company image guidelines
- Staff and subcontractors
- Management structure
- Customer complaint protocols
- Standards and specifications
- Performance criteria
- Performance measurement
- Procedures for setting up the business

Great post - an operations manual is the system itself for a franchise company. The system is valuable too and should be kept under lock and key - if it leaks out the competition can access all the trade secrets.