Franchising in Portugal: writing the operations manual

A business can run well without its methods being clear enough to pass on to others. Before offering it as a franchise, turn its routines into instructions that another business can follow. The operations manual should explain how to carry out the work, recognise a correct outcome and handle exceptions — not simply describe the brand’s values.

1. Organise the manual around the actual work

Start by listing the tasks that keep the outlet or business unit running: preparing to open, serving customers, delivering the service, receiving goods, cleaning, closing and reporting incidents. Adapt this list to your activity; a service business does not need to copy a restaurant’s structure.

Arrange the content in the order in which it will be used. Someone preparing to open should be able to find the necessary checks without working through chapters on commercial or administrative matters that are not relevant at that moment.

For each routine, document what actually happens in the existing business. Observe the task, review the documents used and ask the people doing the work to explain the less obvious decisions. Phrases such as ‘check that everything is fine’ conceal criteria that need to be written down.

Separate three types of content:

• Procedures: instructions for carrying out a task.
• Checklists: confirmation that essential points have been checked before proceeding.
• Reference documents: specifications, contacts and record templates.

This distinction avoids making every quick check a lengthy read. A searchable contents list and consistent task names are more useful than a visually polished document that is difficult to navigate.

2. Write procedures that support decision-making

Use a common structure for all instructions. Each procedure should identify its purpose, when it applies, the role responsible, the resources required, the steps to follow and the expected outcome.

Also cover what happens when things do not go to plan. An instruction that describes only the ideal scenario leaves franchisees without guidance precisely when they need support.

For example, in a goods receipt procedure, do not simply write ‘check the order’. Specify which documents to compare, which characteristics to inspect, where to record discrepancies and when a product must not be put on sale. The specific criteria should reflect the activity and applicable legal requirements, rather than arbitrary limits.

For each task, answer these questions:

• What triggers the task?
• How can someone tell that it has been completed correctly?
• What record shows what was done?
• When is it necessary to stop and seek guidance?
• Who should be notified of the issue?

Use short sentences and action verbs. Reference photographs or diagrams can help, provided they show exactly the standard required. Avoid vague instructions such as ‘act professionally’ when you can specify observable behaviour instead.

3. Distinguish operational instructions from contractual obligations

Portugal has no specific franchising law or dedicated compulsory register for franchisors. The relationship is subject to, among other legislation, the Civil Code, the rules on standard contract terms set out in Decree-Law No. 446/85, and Portuguese and EU competition rules, including Law No. 19/2012.

The European Code of Ethics for Franchising is a self-regulatory reference; it is not a Portuguese law of general application. Nor is there a specific legally prescribed format for an operations manual.

That freedom does not make the manual a means of imposing any obligation you choose. The manual should set out how to put the business model into practice, not replace the contract. Payments, responsibilities and the consequences of non-compliance should not be hidden in operational instructions.

Seek a legal review of how the documents work together: identification of the applicable manual, conditions of access, rules for its use and the procedure for resolving inconsistencies. Where the manual contains pre-drafted contractual terms, particular care is needed in communicating and explaining them.

Instructions must also respect the independence of the businesses involved and the legislation governing the activity. An internal rule does not override legal obligations relating to safety, data protection or consumer protection.

4. Check that the document works without additional explanations

Before distributing the manual, give a selection of procedures to someone who did not write them and who has the necessary skills. Ask them to carry out the tasks using the specified resources. Record any questions, missed steps and decisions that still depend on verbal explanations.

This exercise tests the document’s clarity; it does not replace training or validation of the business model. If the person constantly needs to ask ‘what does this mean?’, rewrite the instruction.

Label each document with its title, the person or role responsible, version number and date. Keep the current version in a single location and remove outdated copies from wherever they are used.

Practical takeaway: choose a frequent routine, write it down with verifiable criteria and observe someone using it. Repeat the process before considering the manual ready for franchisees.