Basis for cooperation
Franchising is one of the most convenient business models. It helps some companies develop and grow further, it helps some other companies make their first baby steps on the market. A franchisee’s manual, or franchise operations manual, is extremely important for the implementation of this model, and franchising professionals will help you create just the right one for you. However, to make it work, you do need some knowledge about franchising
Franchising in broad terms
Why does one need the franchisee’s manual? Here’s a simulated situation, quite common in business. There are two companies. The former owns a prominent brand and a good market position. The latter has nothing to boast about. However, it too has a chance. Paying royalties to the former company for its know-how and best practices, with an agreement signed, it can also improve and get the work going well.
That, as a matter of fact, is franchising. Each party has their own role. The owner of the trademark is a franchisor, the company using it and promoting it along the way is a franchisee. The former must have a special manual created. This document lays the foundation of a fruitful, mutually beneficial cooperation, without prejudice to either party’s interests. A well-written franchisee’s manual sets stage for a more or less successful cooperation.
Franchising professionals’ assistance in creating a franchise operations manual will be good for your business. There are a lot of companies that offer this service, but one should trust those with experience and a good reputation, just like Konsaltika Group of Companies. If you need a franchise operations manual and brand promotion in Moscow, our experts will be happy to oblige.
A solid foundation for the cooperation agreement
A franchise operations manual contains a set of the most important rules for the partner to get up to speed, which is in fact why the manual is needed. There are several factors influencing the price of our service, for instance:
- the scope of our work;
- the content – the array of questions discussed on the pages;
- the scope of franchisor’s business and requirements for a new partner.
Let’s delve into it. Franchising means the franchisor hands over to the franchisee the rights to utilize the trademark and other business-related features, be it about production, retail or services. The terms and conditions of such cooperation are stipulated in the franchise agreement (a commercial concession agreement). The future is very bright, and working hard to create the franchise operations manual is worth it. As a result, one party is empowered to increase their business footprint while the other one is sure to make a profit in a sustained way with a full support from the partner. The franchisor, in turn, must provide this support. Otherwise, the cooperation won’t be efficient. Each party should strive to renew or extend the agreement as it will mean success.
The franchise operations manual will set the relations on the right track from the get go. Its first purpose is to help the franchisee enter the market. The manual contains various recommendations, from the registration stage to the requirements for premises. The more elaborate and better structured it is, the more transparent the relations between the parties will be.
In order to create such a manual, one needs to be knowledgeable and skillful. Konsaltika employs shrewd experts that regularly do such tasks. They are indeed the best specialists to go to if you need a franchise operations manual. Another valid argument to choose us is the prices of our services. Despite being a market leader, Konsaltika offers very competitive prices.
Conflicts: better to avoid than to handle
Creating the manual is a major initial stage of cooperation. The parties must show how far-sighted they are and elaborate on each clause and point. The franchise agreement is then based on the franchise operations manual. It is the basis for cooperation. It is challenging to create the manual because it must serve two purposes simultaneously. It isn’t only a set of rules for the franchisee structuring their work; it also aims to protect franchisor’s business as it is the franchisor who owns and is responsible for the trademark.
The owner of the trademark has to share, to some extent, proprietary information, such as trade secrets, service-related know-how, etc., – anything that makes the trademark stand out in its segment. It is necessary to include that in the turnkey franchise operations manual in order to attract prospective franchisees. The situation is confusing. Franchisors are focused on keeping the secrets as much as they can and often limit franchisees in what they can do. For instance, franchisors might:
- meticulously control the supply chain and inventory;
- deprive the franchisees of an alternative to choose other partners;
- require compulsory additional payments for the network’s advertising campaign – generally, it is not supposed to happen;
- meticulously take inventory, carry out audits, inspections and take other unpopular measures.
Franchisors might be especially zealous when the partner stops being a franchisee due to a termination or expiration. Special provisions regarding that are often included in the agreement, for instance, a post-term restrictive covenant prohibiting the franchisee from working or operating a competitive business in the same segment for a certain period in a certain area (the area where the franchisor is active).
At the same time, excessive restrictions have a flip side, and it should be considered when working on the franchise operations manual. In essence, if you keep all the know-how secret, it might lead to deteriorating quality of goods and services. You don’t want that, especially if you intend to promote in Moscow and other big cities with significant customer traffic.
What follows is a loss of goodwill and brand reputation, and thus, a hard-hitting decline in profits. The franchise operations manual must be put together with such considerations in mind, to facilitate cooperation, and our experts can help you.
For aspiring franchisees and potential franchisors
Many companies or entrepreneurs that have just become franchisees make mistakes when building their relationships with the franchisors. Wishing to feel the sense of belonging to a strong brand, they agree to the toughest terms and conditions imposed by the franchisors.
The psychological nature of this delusion is obvious; the novice franchisee lacks franchising-related experience and believes that the bumped-up name will pave the way to success. However, a good sign above the door is never enough. As a result, aspiring franchisees are trapped by dozens of limitations and restrictions, which in turn become the cause of hard-to-solve conflicts. An inexpensive franchise operations manual will help prevent them.
If you need a franchise manual, you’ve come to the right place. Konsaltika Group of Companies, guided by years of experience in the field, will put together the best terms and conditions for your franchise agreement. If you order a franchise operations manual from us, you will not only save time and money, but also provide stability for the business. Proven by our loyal clients.
When experts create the franchise operations manual, they are guided by their vast experience and best practices from all over the world. The best examples are such colossuses as McDonald’s, Pepsi and other corporations doing business through franchising. They gained worldwide fame, have their turnover in the billions and impressive profits, thanks to franchising. Thriving on this model, when hundreds and hundreds of companies promote their brand, those colossuses have gained experience ready to be used by every entrepreneur. Those companies created an optimal model of interaction in franchising.
A standard franchisee’s manual is divided into sections whose number and contents depend on the business area of the company.
Let’s consider a big store. Its franchise operations manual will include the following:
- Introduction. It describes the core business area of the franchisor, with their vision and expectations about future cooperation. It also mentions the support a franchisee can expect from the franchisor.
- Technical issues. This section states the requirements for premises, relevant standards. It might also include a design concept, measured areas plan, recommendations on the search and selection of suitable buildings.
- Distinctive features in the interior design. They are essential for a brand because they are part of the corporate identity, which the manual teaches franchisees to respect.
- Background music. It is a special feature in stores. It used to be almost neglected, but a carefully elaborated and implemented idea can attract a lot of customers. A good example is Billa, which had the same music tracks in every supermarket in the world, be it in Paris, Ankara, Moscow or Kiev.
- Instructions on how to get registered as a self-employed person (in Russian – ИП) or as a limited liability company under the laws of Russian Federation (in Russian – ООО). These are necessary because franchisors might negotiate not only with companies, but also with natural persons wishing to start a company in the future. Certainly, one must approach the prospect carefully, on a case-by-case basis, and insist on certain guarantees of their commitment. At the same time, when creating a turnkey franchise operations manual, one must consider all possibilities. In most cases there is a lot of potential if the franchisor helps the partner enter the market.
- The sign placement and the exterior and street lighting scheme.
- Logistics. The manual describes the scheme, the terms and conditions for shipment, delivery, receipt, storage of goods, terms and time frames of taking inventory.
- Sales of goods and services, dispatch.
- Elaborate description of the merchandise display, with a chart or plan attached if possible.
- The rules on taking photos/video footage anywhere at the premises, both inside and outside. These issues are discussed if need be.
- Safety and security.
The above-mentioned is only an example of what might be included in the manual. There might be more or fewer points, but they must be easy to understand, reflect the current state of affairs objectively, and be presented in an attractive way. The franchise operations manual is part of our turnkey franchise packages and is made available to prospective franchisees online, at a special platform.
The franchise operations manual is in fact the first presentation of your company. Its quality and attractiveness of its contents directly influence the number of prospective aspiring franchisees. This number doesn’t have to be 1 or 2. The more franchisees the better as it means there are greater opportunities to develop the trademark, and Konsaltika is there to offer you a franchise operations manual that will work for you and to promote your franchise in Moscow, a city with a lot of potential buyers. The price of our service will pleasantly surprise you as it is sure to remain unnoticeable in your entire budget, especially against the profits this professionally prepared document will make you.
An efficient cooperation guarantees an advantage
It is not by pure luck that Konsaltika is respected among entrepreneurs.
More than 9 years in franchising, more than 70 implemented projects – you can trust our experts with the preparation of the manual.
The standard sequence in your cooperation with Konsaltika is as follows:
- You submit an application, we handle it.
- We analyze your website, it is our primary source of information about your company.
- We arrange a face-to-face meeting with you and discuss the future franchise operations manual.
- We work on our business proposal and seek your approval.
- We calculate the price of our services. We create a contract, both parties sign it.
- We receive the upfront payment from you.
- We start working on your project.
Konsaltika’s experts do their job as quickly and efficiently as they can. The actual time frame depends on the complexity of the project, but it usually takes about 2 months to complete. Please bear in mind that every case is unique, and the time frames and prices might vary.
The best reputation
We are a very tight-knit team and value each and every employee. All responsibilities are clearly allocated, which makes infeasible feasible. Thus, it is not beyond us to create a franchise operation manual even for a company with a complex organizational structure.
Meet our top experts:
|Evgeniya Zyabkina||Business Development Director||Founder of Konsaltika, 9 years in franchising|
|Denis Gusev||Head of Sales||Does the most important part of work with the clients, 5 years in franchising|
|Irina Slavinskaya||Regional representative||Responsible for Ukraine|
|Irina Fomina||Regional representative||Responsible for the city of Stavropol and Krasnodar Krai|
|Tatiana Pominova||Key Account Manager||Responsible for Konsaltika’s website, which is an excellent tool for communication with our clients|
Among Konsaltika’s partners, cooperating also regarding the franchisee’s manual, are:
- Arena Space. According to one of its investors, they managed to create an entire network of VR parks where people come to enjoy themselves and have a great time, and their cooperation with Konsaltika played a big role in it;
- Prive7– thanks to a well-written manual, the whole franchise package turned out to be very attractive, and it also ensures company’s growth. According to our regional representative, Konsaltika continues to assist when needed;
- Chaihona №1 (in Russian Чайхана №1), and many other companies well-known to end consumers.
Konsaltika is willing to cooperate with you regardless of your core business area. Our clients can be in public catering as well as in banking. We employ well-read, well-informed, knowledgeable experts that are ready to create a turnkey franchise operations manual for any industry. It sets the stage for future growth and profits.