The franchise agreement serves as the contractual basis for all franchise relationships. However, it cannot contain all the operational aspects of a franchise business, and that’s where the Operations Manual comes in, commonly referred to as the ‘Ops Manual’.
An Operations Manual is arguably the most essential element to any franchise business. As a franchisor’s business grows, it becomes increasingly difficult to ensure consistency across the entire franchise system. A well-drafted Ops Manual streamlines operations, reduces misunderstandings, and serves as a constant North Star for franchisees.
Unlike the franchise agreement, it can also be continuously updated to account for any changes to the business necessary to keep it relevant. But a word of caution to franchisors: in as far as the Ops Manual imposes obligations on franchisees, it also must endure the scrutiny of the CPA.
– Charl Groenewald & Nolwazi Mngadi
