Preparing an Operations Manual Before Franchising Your Business

A business that runs well does not necessarily have working instructions that others can follow. Essential knowledge often remains in the heads of the owner or senior staff. Before building a franchise network, turn that knowledge into an operations manual: a guide explaining tasks, required standards and what to do when things go wrong. The aim is not to produce a thick document, but to make the way your business works easy to understand and replicate consistently.

1. Map out the tasks that need to be repeatable

Start by observing what actually happens at an established outlet. Do not simply buy a template and replace the brand name. Templates can help provide a structure, but they do not prove that the procedures suit your equipment, workforce or services.

Record the workflow from opening preparations through to closing. At each stage, ask: who does the work, what do they need, what outcome is expected, and what mistakes are most likely?

Organise the manual into sections that are easy to find, such as:

• Preparing the workplace and checking equipment.
• Receiving, storing and issuing stock.
• Making products or delivering services.
• Recording transactions and cashing up.
• Cleaning, workplace safety and handling operational disruptions.

Prioritise tasks where failure could harm people, damage products or cause financial loss. Then document other routine tasks. This approach helps owners allocate their time without overlooking important procedures simply because they are rarely carried out.

Define the scope of each procedure, too. For example, a goods-receiving procedure ends when the goods have been accepted or rejected and the inspection results recorded; storing the goods can be a separate procedure.

2. Use a procedure format that people can follow

Each procedure should follow a consistent format. Readers should not have to guess where to find the person responsible, the steps to follow or the criteria for success.

Use the following elements as a practical framework:

1. Purpose: the intended outcome.
2. Trigger: when the procedure must be carried out.
3. Responsibility: the role responsible for carrying it out.
4. Resources: the equipment, materials or system access required.
5. Steps: a sequence of observable actions.
6. Required standard: the conditions that must be met for the task to be considered correctly completed.
7. Exceptions: what to do if those conditions are not met.
8. Evidence of completion: the records that must be kept.

Avoid instructions such as “make sure the goods are in good condition” or “clean to an acceptable standard”. Explain which features need checking and identify the relevant standard. For food, storage requirements must reflect applicable food safety rules and the characteristics of the product, rather than estimated figures copied from another business.

For example, a procedure for receiving supplies might require staff to check quantities against delivery documents, inspect the packaging, record product details and separate out goods that do not meet the required standards. Explain who has the authority to accept or reject goods. Do not leave staff to resolve discrepancies according to their own habits.

Add photographs or diagrams where shapes, positions or sequences of movements are difficult to describe. Make sure the images demonstrate correct practice rather than simply decorating the page.

3. Distinguish working instructions from legal obligations

Indonesia regulates franchising specifically through Government Regulation No. 35 of 2024 on Franchising. This regulation requires franchise agreements to cover, among other things, the business system and the assistance, facilities, operational guidance, training and marketing provided by the franchisor.

An operations manual helps translate the business system into day-to-day working instructions. However, it does not replace the franchise agreement, the franchise offering prospectus or the franchise registration certificate, known in Indonesia as the Surat Tanda Pendaftaran Waralaba (STPW). Having a set of procedures does not, on its own, mean that all requirements for operating a franchise have been met.

When preparing the manual, separate technical instructions from commercial decisions. How to record stock is an operational instruction. Charging particular fees to franchisees, by contrast, requires a clear basis in the arrangements governing the relationship between the parties; do not introduce such charges solely through a small note in a procedure.

Ask the person responsible for operations to check that the steps can actually be carried out. For sections relating to safety, licensing or the parties’ obligations, involve professionals who understand the relevant requirements. This helps ensure that the manual is not only easy to read, but also avoids directing franchisees to act in ways that conflict with their obligations.

4. Test usability before handing it over to franchisees

Carry out a simple check of each procedure: give it to a member of staff who was not involved in writing it, then ask them to perform the task using the document. The focus is on the clarity of the instructions, not on assessing the employee’s ability.

Note any sections that raise questions, require additional verbal explanation or lead to different interpretations. Correct inconsistent terminology and break down overly long steps. If a procedure repeatedly requires explanation from the owner, the document is not yet sufficiently self-contained.

Include a contents page, procedure codes, publication dates and a named person responsible for the document. Place quick-reference guides where the work is carried out, with full explanations available in the main manual. Make sure staff can access essential instructions if digital devices or the internet connection fail.

Before handing over the manual, check that every form matches its procedure. Do not require staff to record information for which there is no field, or provide forms without explaining how to use them.

Practical next step: choose one high-risk task, document it in a consistent format, then check whether staff can follow it without additional explanation. Use the revised version as a model for developing the rest of the manual.