OPERATIONS & PROCEDURES MANUAL Dr. Hatem Zaki Executive Board Member Egyptian Franchise Development Association (EFDA)

FRANCHISING Working Relationship Working Relationship OPERATIONS AND PROCEDURES MANUAL Embodies Franchisor Embodies Franchisor Experience Experience Protects Business Protects Business

UNDERSTANDING THE BUSINESS SYSTEM Encapsulates intellectual knowledge of Encapsulates intellectual knowledge of franchise franchise Reduces risk Reduces risk Contributes to effective training Contributes to effective training Increases business efficiency Increases business efficiency Task allocation and co-ordination Task allocation and co-ordination Facilitates repetition Facilitates repetition OPERATIONS AND PROCEDURES MANUAL:

UNDERSTANDING THE BUSINESS SYSTEM Setting up a new franchise (pre- opening) Setting up a new franchise (pre- opening) Day-to-day operational procedures Day-to-day operational procedures Marketing & Sales techniques Marketing & Sales techniques OPERATIONS AND PROCEDURES MANUAL will normally address 3 broad areas:

PLANNING THE OPS MANUAL Decide which processes or tasks by Decide which processes or tasks by franchisees or franchisor; and franchisees or franchisor; and Efficiencies of process locally or centrally Efficiencies of process locally or centrally Manuals for Separate Functions or Staff Operations Manual Operations Manual Corporate Identity Manual Corporate Identity Manual Training Manual Training Manual Specialty Manual Specialty Manual e.g.

RELATIONSHIP BETWEEN FRANCHISE AGREEMENT AND OPS MANUAL AGREEMENT RIGHTS AND OBLIGATIONS OF FRANCHISEE OPS MANUAL HOW TO PERFORM AND COMPLY WITH OBLIGATIONS CHANGES TO OPS MANUAL PERMITTED BY AGREEMENT

ROLE OF OPS MANUAL Information Procedures and system guidelines Defines standards Complementary and enforceable part of the agreement agreement Defines communication and information flow with network with network Control mechanisms Tangible record of intellectual property Training tool Management tool A Living Document to Assist Franchisee to Manage Franchise

ASPECTS ADDRESSED IN OPS MANUAL Some basic subjects covered include: Background Setting up a new franchise Day-to-day operational procedures Product knowledge and technical issues Stock ordering, receipt, stocktaking Marketing Sales techniques Financial administration and control Staff management and training Legal obligations Stationery

OPS MANUAL SUMMARY Background Information Background Information Procedural Guidelines Procedural Guidelines Standards Requirements Standards Requirements

MANAGING THE OPS MANUAL On loan for duration of agreement On loan for duration of agreement Each manual to be numbered Each manual to be numbered For exclusive use – can’t reproduce For exclusive use – can’t reproduce Franchisee must sign Franchisee must sign confidentiality undertaking confidentiality undertaking

THANK YOU SEE YOU AT MIFE 2014 Middle East and North Africa International Franchising and Licensing Exhibition May 22 nd - 25 th, 2014 Cairo, Egypt