A Franchise Operations Manual for Lebanon: Managing Everyday Exceptions

When turning an established business in Lebanon into a franchise, explaining a normal working day to the franchisee is not enough. The real test begins when a customer requests an unusual service, the person authorised to approve it is unavailable, or a branch needs a decision that falls outside the written procedure. Across a franchise network, managing these exceptions helps protect a consistent experience without turning the franchisor into the day-to-day manager of every branch.

Identify exceptions in your existing business

Start by reviewing decisions that the founder or store manager has made outside normal procedures. Look through work messages, shift notes and approval requests for recurring questions: can an order be accepted after closing time? Who approves a service that is not on the list? When can the order in which jobs are completed be changed?

Do not treat every question as an exception. If a request keeps recurring, the standard procedure may be incomplete and need clarification. A genuine exception is a limited departure from an established rule, for a specific reason and under conditions that can be documented.

Draw up an initial list covering the following for each case:

• The standard rule from which a departure is proposed.
• Why the exception is needed and what it is intended to achieve.
• Its potential impact on the customer, costs, staff and the brand’s reputation.
• Who previously made the decision and what information they needed.

For example, accepting a large order shortly before closing may look like a good sales opportunity, but it could mean extending the team’s working hours or promising an unrealistic delivery time. The aim is not to write one answer for every situation, but to identify the factors that prevent approvals being given on the fly.

Turn the list into a simple authority matrix

Divide cases into three operational categories: decisions the franchisee can make within written limits, decisions requiring the franchisor’s approval, and matters for which the manual allows no exceptions. Keep the matrix short enough for staff to use while working.

The first category might, for example, allow changes to the order in which jobs are completed, provided no customer’s promised completion time changes and quality is unaffected. The second could include a request to offer a new service under the brand, because its implications extend beyond the branch. Safety requirements and legal obligations, however, must never become subject to exceptions granted by management.

For every decision that needs escalation, specify the authorised person at the franchisor, their deputy when absent, the communication channel, the information required and the agreed response time. Most importantly, state what the branch should do while waiting: continue under the standard procedure, put the request on hold, or decline to provide the service?

Do not automatically treat silence as implied approval. The authorised person may be unreachable while the branch makes a decision that is difficult to reverse. It is better to write a safe default rule for each type of case than to rely on a general instruction such as ‘use your judgement’.

Align decision-making authority with the contract and Lebanese law

Lebanon has no comprehensive law specifically governing franchising, nor a franchise-specific disclosure regime requiring a standard format or a uniform pre-signing period. The relationship is governed by general legal provisions, principally the Code of Obligations and Contracts. Article 166 recognises freedom to structure contractual relationships within the limits of public policy, public morals and mandatory legal provisions.

Commercial, consumer protection, employment and intellectual property rules also remain relevant, depending on the activity and the decision involved. The substance of some relationships may also raise the question of whether Legislative Decree No. 34 of 1967 on commercial representation applies. A Lebanese lawyer should therefore review the legal nature of the relationship in practice, rather than relying solely on the contract’s title.

In practical terms, the contract should define how far the operations manual is binding and the limits of the franchisor’s authority to approve exceptions. Put the day-to-day detail in the manual. An ad hoc operational approval should not grant a new right to use the brand, change fees or extend the scope of the franchise without following the appropriate contractual process.

Also state that approval of a specific case does not automatically create ongoing permission for subsequent cases. But do not rely on that wording to justify inconsistent decisions: set objective criteria and explain differences in treatment where circumstances differ. The franchisee remains responsible for managing their business and meeting its legal obligations; the franchisor’s approval does not release them from those responsibilities.

Test the process and track each exception through to closure

Before handing the manual to your first franchisee, test the approval process in your existing business. Choose realistic cases and ask a shift manager to handle them using only the matrix. Check whether they know whom to contact, send the necessary information and can apply the default rule if a response is delayed.

Keep a brief record of each exception: the branch, date, request, reason, decision-maker, conditions of approval, how long the approval remains valid and the actual outcome. Record refusals too, so that the same request is not taken to different people in search of a different answer.

If urgent circumstances require approval by telephone, confirm it in writing through the agreed channel. Once the case is complete, mark it clearly as closed, particularly if it involved temporary permission that should not continue. Review the log regularly to identify unclear rules or bottlenecks that make approvals too slow for operational needs.

Practical takeaway: Before awarding a franchise, prepare an authority matrix, a default rule for situations where no response is received, and a log for tracking exceptions through to closure. A good manual does not try to anticipate every situation; it makes responsibility and limits clear when an unusual decision is needed.