One of the strategies franchisees often employ to maintain the integrity of the franchise system and ensure control and consistency throughout the franchise business is to use a standardized confidential operations manual. However, we all know that the only thing that is constant is the change in use. This is why the confidential operations manual in any franchise company must be constantly updated. But how do you know if all the franchisees have been diligent in updating their manual, so that everyone is doing everything the same way?
Many franchisors today put the manuals online on a company intranet system and the company itself makes the changes. This is a good strategy, however it opens the door to downloadable theft of proprietary information. In our company we decided to use manuals on paper, in folders, which were extremely difficult to copy. To ensure that our franchisees keep their manual up to date, we decided to add a clause in our franchise agreements and make them agree before the start of their franchise, above all else, to keep the confidential operations manual up to date;
3.12 Confidential Operations Manual
3.12.1 Manual and system update
The Franchisee acknowledges that the Service Marks, the Confidential Operations Manual and the System, including any future amendments or modifications, have substantial value and that the conditions, restrictions, covenants not to compete and other limitations imposed by this Agreement are necessary, equitable and reasonable for the general benefit of the Franchisee, the Franchisor and others who enjoy any lawful economic interest in the Service Marks, the Confidential Operations Manual and the System.
Franchisor may change or modify any part of the Service Marks, the Confidential Operations Manual or the System from time to time in its sole discretion. Franchisee will accept, use and protect, for purposes of this Franchise Agreement, all changes and modifications as if they were part of the Service Marks, the Confidential Operations Manual and the System at the time this Franchise Agreement is executed. franchise.
The franchisee will bear all costs and expenses that are reasonably necessary as a result of said changes or modifications. Under no circumstances will the Franchisor be liable to the Franchisee for damages, costs, losses or harm related to these changes or modifications.
Complete and detailed uniformity of the Service Marks, the Confidential Operations Manual and the System under the different conditions that our Franchisees will experience may not be possible or practicable. Therefore, the Franchisor reserves the right, at its discretion, to accommodate the special needs of the Franchisees or any of our other franchisees. These needs may result from the peculiarities of a particular site or location, population density, business potential, business area populations, existing business practices, requirements of local law or local customers, zoning requirements , diurnal population, owner requirements, or any other conditions. that the franchisor considers important to the successful operation of the franchisee’s business. From time to time, the Franchisor may allow certain franchisees to deviate from the normal standards and routines of the system to experiment or test new products, equipment, designs and procedures. In no event shall any variation or test be deemed a waiver of any of the Franchisor’s rights, or an excuse for the Franchisee’s failure to perform any of its duties under this Franchise Agreement. The Franchisor may require the Franchisee at any time to begin to fully comply with the Confidential Operations Manual and the System. The franchisor will not be obligated to grant any variation to the franchisee under any circumstances.
In order to protect the reputation and goodwill associated with the Franchisor’s trademarks and to maintain the Franchisor’s uniform standards of quality and operations, the Franchisee must conduct its franchise business in strict accordance with the Confidential Operations Manual. , amended. Franchisee will update his manual via the Franchisee Forum intranet system, email, diskettes, CD-ROMs, zip disks, or other media to his computer immediately upon receipt or insert new pages into his loaned copy of the Confidential Operations Manual. All subsequently revised pages or old diskettes must be returned to the Franchisor or immediately shredded, burned or completely destroyed to ensure confidentiality. The franchisor will inform the franchisee of what to do after each review.
The franchisor may, at its sole discretion, revise any or all of the contents of the Confidential Operations Manual to convey to the franchisee any new advances and developments in sales, marketing, operating techniques and other items and procedures relevant to the operation of the franchised business. There will be no additional costs associated with updating the loaned copy of the Franchisee Confidential Operations Manual. This is still a service funded by the ongoing royalties of the franchisee.
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Each franchisor will need to determine the best strategy, which will work best for their business. It is recommended that you speak with a franchise attorney about the legal ways to do this. There is more than one strategy and each franchise company will need to determine what makes the most sense for them. Consider this in 2006.
