OPERATIONS MANUAL STEP 2 – SETTING UP THEIR BUSINESS MUMS IN FRANCHISE

SETTING UP THEIR BUSINESS This will provide a step by step guide to your franchisees about how to set up a business What they need to think about & consider The practical things that they need to do

COMPANY FORMATION Are you suggesting how they name their company For example would it be Mums in Franchise Manchester? Are you suggesting whether they form their company as a sole trader, limited company etc You may want to say that the business must be set up in a certain format – for example as a sole trader or you may want to just suggest they get their own advice on the subject – this is a subject that I suggest you take legal advice on when you speak to a lawyer about your franchise agreement in due course!

STEPS THEY NEED TO TAKE In the UK you must register with HM Customs & Excises as steps employed. You can provide the contact details etc within your manual [included in the work book] Tell them about their need to pay Class 2 NI contributions if they are in the UK Whether they need to register for VAT – there is an income threshold before it becomes necessary to pay VAT which changes – you will find the current limit at HMRC website Tax returns – the fact that they will need to do them & when they need to be completed by.

RECORDS THEY NEED TO KEEP Details of the expectation of the records which they need to keep for tax purposes Their data protection obligations

HEALTH & SAFETY COMPLIANCE Whether your business deems it necessary for them to do Risk Assessments and if you do then a pro forma risk assessment form should be annexed to the Operations Manual Whether your business will need an accident book Whether any Health & Safety registration is required – i.e. Environmental Health for work with food

OTHER OFFICAL REGISTRATIONS Do they need to do any other official registrations or provide any checks i.e. CRB checks if working with children or vulnerable people Whether they need to do any food safety training or other qualifications for their business

INSURANCE The levels of business insurance which they will need Public Liability, product liability Value of the insurance A note to the fact that the franchisees customers are buying from the franchisee and not the franchisor and that they are not covered under your insurance.

BANK ACCOUNT The fact that a separate bank account for business transactions is advised to make accounting easier The fact that all business monies should go through their business account & not their personal account