PLC - Checklist 2: Operations manual

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Checklist 2: Operations manual

Resource type: Checklist Status: Maintained Jurisdiction: United Kingdom

A checklist of the matters which may be contained in a franchise operations manual. John Pratt, Hamilton Pratt

Contents
Introduction System Operating methods Operation instructions Outlet Standard forms Legal and ethical issues Franchisor's directory

Introduction
Brief summary of the franchise business. What the franchisee will have to do. What the franchisor will provide. Details of the existing franchise network. The franchisor's business philosophy.

System
A detailed description of the system and each of its elements.

Operating methods
A list of what is required in the business should be set out and should include: Equipment.

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PLC - Checklist 2: Operations manual

How the equipment is to be operated. Equipment problems. Stock requirements. IT requirements (hardware and software). Vehicle requirements.

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Operation instructions
All matters relating to the operation of the business should be set out in detail and will include: Standard forms. Standard procedures. Financial records. Financial reporting. Payment of franchise fees. General accounting, VAT, PAYE and income/corporation tax matters with information on how to complete necessary forms. Cash control and banking procedures. How to deal with cheques, debit cards and credit cards. Staff requirements. Staff uniforms. Staff training. Procedure for disciplining staff. Summary of employment legislation. Breakdown of job description for staff. Opening times. Trading patterns.

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PLC - Checklist 2: Operations manual

Purchasing requirements and stock levels. Pricing policies. Insurance. Advertising and marketing recommendations including: use of Yellow Pages; local newspapers; PR companies; launch procedures; marketing material; point of sale advertising; local advertising policy; recommendations concerning PR and advertising.

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Outlet
Suggested location of store. Store layout. Display and merchandising techniques. Cleanliness. Complaints procedure.

Standard forms
All standard documentation and forms required to be used in the business should be set out. This may include: Requirements under the Companies Act 2006 and Companies (Trading Disclosures) Regulations 2008 on business names. Accounting and financial forms.

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PLC - Checklist 2: Operations manual

Ordering forms. Stationery. Data Protection Act forms. Contracts of employment.

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Legal and ethical issues

A summary of relevant legislation should be provided. The franchisor's ethics and anti-bribery policies could either be scheduled to the franchise agreement or included in the operations manual.

Franchisor's directory
A list of franchisor's employees with their job descriptions and reporting structure. Useful telephone numbers and contact details.

Resource information
Resource ID: 4-100-9615 Products: Franchising, PLC UK Commercial, PLC UK Corporate, PLC UK IPIT & Communications, PLC UK Law Department This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible. Series: Checklist

Resource history
Bribery Act 2010 There is no specific reference to the Bribery Act 2010 in this checklist, but we have mentioned that the franchisor's ethical and antibribery policies and procedures could be included in the operations manual rather than scheduled to the franchise agreement.

Related content
Topics Cross-border: Commercial and International Trade (http://uk.practicallaw.com/topic8-103-2044) Franchising (http://uk.practicallaw.com/topic4-103-1131) Vertical Agreements (http://uk.practicallaw.com/topic9-103-1181) Standard documents Franchise agreement (http://ld.practicallaw.com/topic9-223-1966)

http://ld.practicallaw.com/4-100-9615?q=&qp=&qo=&qe=

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PLC - Checklist 2: Operations manual

Franchise purchase agreement: synopsis (http://ld.practicallaw.com/topic4-100-9620) Master development agreement: skeleton (http://ld.practicallaw.com/topic6-100-9619) Master franchise agreement: skeleton (http://ld.practicallaw.com/topic8-100-9618)

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