Create an Operations Manual Before Franchising Your Business

When you are the only person who knows how to run the business, it is difficult to hand it over to another owner. Before offering franchises in the Philippines, you need to turn familiar routines into clear instructions. An operations manual is not simply an accessory to your franchise offer: it is the day-to-day guide that helps everyone in your franchise network work consistently.

1. Organise the manual around the actual work

Do not start with a lengthy history of the brand. Prioritise the tasks a new manager needs to carry out, from opening the shop to closing it. Write down the actual sequence of work, rather than what you assume employees do.

You could divide the content into opening, preparation, welcoming customers, processing transactions, cleaning and closing. For a service business, you could follow the workflow from taking bookings through to completing and checking the service.

Before writing, observe a full day of operations. Note when staff ask for help, which decisions are routinely referred to the owner, and which steps are often forgotten. These are the gaps the manual needs to fill.

Start by drawing up a list of procedures. For each one, identify who will carry it out, who will cover their absence, and what record will be kept. This helps reveal tasks with no clear person responsible, or situations where two people each assume the other will act.

2. Use the same template for every procedure

A manual is easier to use when every set of instructions follows the same format. Instead of long paragraphs, write short steps with a clear beginning and end.

Include the following in each procedure:

• Purpose: What result needs to be achieved?
• Responsibility: Who will carry out the task, and who can authorise exceptions?
• Equipment and preparation: What needs to be ready before work begins?
• Steps: What should be done, and in what order?
• Completion criteria: How will staff know the work has been done correctly and is complete?
• Exceptions and reporting: What should happen when the usual process cannot be followed?

For example, the instruction “make sure the shop is ready” is not enough. Separate steps for checking cleanliness, switching on the necessary equipment, preparing the service area and recording any problems that could prevent opening are more useful.

Avoid words such as “enough”, “properly” or “quickly” without further explanation. Where a specific quantity, time or condition is needed, state the standard proven in your own operations. Do not invent measurements simply to make the document look complete.

3. Test whether it makes sense without the owner’s explanation

This test focuses on the clarity of the document, not the profitability of the outlet. Choose an employee with the necessary basic skills who did not write the procedure. Ask them to carry out a routine task using only the written guide, with appropriate supervision.

Do not immediately step in with an explanation when they have a question. First, note which word, image or step is unclear. If the owner needs to intervene for the task to be completed, some knowledge may still be missing from the written instructions.

For tasks involving risks to health, safety, money or data, do not allow mistakes simply to test the document. Use a safe simulation or a tabletop review instead.

Then revise the instructions and have them reviewed again. A photograph of the correct set-up, an example of a completed record, or a simple “if this happens, take this next step” guide may help. Give every procedure a date and version number so that users can easily identify which version they are using.

4. Clarify the boundary between the manual and the agreement

The manual explains how the work should be done. It should not be used to hide fees, new obligations or powers that are not clearly set out in the franchise agreement.

The Philippines has no single comprehensive law covering every aspect of franchising. However, Executive Order No. 169, series of 2022, sets out minimum provisions and Department of Trade and Industry (DTI) registration requirements for franchise agreements within its scope involving micro, small and medium-sized enterprise franchisees. Matters that must be made clear include both parties’ responsibilities and the support the franchisor will provide. Having a manual does not replace those provisions.

The Civil Code is also relevant to contractual obligations, as is the Intellectual Property Code to the use of the brand and the transfer of know-how. Ask a lawyer to review how the agreement refers to the manual and the extent to which compliance with it is required.

Practical takeaway: Choose one frequently performed task that the owner still has to explain repeatedly. Write it down, have someone use the instructions, and refine them. Repeat until day-to-day operations have clear guidance rather than relying on your presence.