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Introduction to the Middle East
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Introduction to Franchising
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Franchising in the Middle East
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Back to introduction
What is franchising?
Types of franchising
What are the advantages and disadvantages of franchising?
How is franchising different to other third party relationships?
How can a business be franchised?
The terminology of franchising
Structuring a franchise
Developing a business for franchising
The pilot operation
Recruiting franchisees
The Manual
The franchise agreement
Development schedule
General obligations of both parties
Sale of the franchisee's rights
Franchise disputes
Forms of dispute resolution
Litigation
Choice of forum and choice of law clauses
What information should a franchisor give to a prospective franchisee?
Selecting developers, master franchisees and unit franchisees


 

The Manual

The Manual is the embodiment of the know how of the franchise. It therefore is of paramount operational importance. However, it will usually also be expressly stated to be a part of the franchise agreement and so be of considerable legal significance also.

It identifies the know how and therefore both enables franchisees to use the know how and helps protect it by way of identifying the trade secrets and providing copyright protection to the way in which the know how is expressed.

There is no set format for a manual. Some franchisors have up to ten binders each addressing different aspects of the franchised business ranging from marketing through to accounting and the shop layout.

The manual is a living document and will continually change as the business develops. It is for this reason that Manuals often take the form of ring binders - which allow new pages to be inserted/replaced as and when necessary.

The following is an illustrative list of the likely contents of a Manual :

  • Shop lay-out
  • Staff rotas/schedules etc.
  • Staff uniforms/appearance
  • Staff etiquette
  • Staffing requirements of outlets
  • Staff job descriptions
  • Standard form contracts of employment
  • Disciplinary procedure
  • Grievance procedure
  • Training requirements
  • Service standards
  • Pricing policies
  • Purchasing policies and standard form contracts
  • Storage requirements
  • Opening hours
  • Stock rotation
  • Accounting procedures
  • Point of sale requirement
  • Advertising and marketing practices
  • Maintenance of equipment requirements
  • Technical information about equipment used
  • Cleaning routines
  • Internal directory of franchisors organisation
  • Menu's/recipes/variations
  • Explanation of relevant laws
  • Customer complaints procedures
  • Guarantees/warrantees
  • Approved supplies list
   

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