One of the strategies that franchises often employ to maintain the integrity of the franchise system and ensure control and consistency throughout the franchise company is to use a confidential standardized operations manual. However, we all know that the only thing that changes is constant use. That is why the confidential operations manual in any franchising company must be constantly updated. But how do you know if all the franchisees have been diligent in updating their manual, so that everyone is doing everything the same way?

Today, many franchisors place the manuals online on a company intranet system and the changes are made by the company itself. This is a good strategy, however, it opens the door to downloadable proprietary information theft. At our company we decided to use paper manuals, in folders, which were extremely difficult to copy. To ensure that our franchisees update their manual, we decided to add a clause to our franchise agreements and have them agree before the start of their franchise to, above all, keep the confidential operations manual updated;

3.12 Confidential Operations Manual

3.12.1 Manual and system update

The franchisee acknowledges that the Service Marks, the Confidential Operations Manual, and the System, including future amendments or modifications thereto, are of substantial value and that the conditions, restrictions, non-compete covenants, and other limitations imposed by this Agreement they are necessary and equitable. and reasonable for the general benefit of the Franchisee, Franchisor, and others who have any legitimate financial interest in the Service Marks, the Confidential Operations Manual, and the System.

The Franchisor may change or modify any part of the Service Marks, the Confidential Operations Manual or the System from time to time in its sole discretion. The franchisee will accept, use and protect, for the purposes of this Franchise Agreement, all changes and modifications as if they were part of the Service Marks, the Confidential Operations Manual, and the System at the time this Agreement is executed. franchise.

The franchisee will assume all costs and expenses that may be reasonably necessary as a result of said changes or modifications. Under no circumstances will the Franchisor be liable to the Franchisee for damages, costs, losses or damages related to these changes or modifications.

Complete and detailed uniformity of the Service Marks, the confidential Operations Manual and the System in the different conditions that our Franchisees will experience may not be possible or feasible. Therefore, the Franchisor reserves the right, at its discretion, to accommodate the special needs of the Franchisee or any other of our franchisees. These needs may result from the peculiarities of a particular site or location, population density, business potential, business area populations, existing business practices, local law requirements or local customers, zoning requirements , daytime population, owner’s requirements, or any other condition. that the Franchisor considers important to the successful operation of the franchisee’s business. From time to time, the Franchisor may allow certain franchisees to deviate from normal system standards and routines to experiment or test new products, equipment, designs, and procedures. In no event will any variation or test be considered a waiver of any of the Franchisor’s rights, or an excuse for the Franchisee not to fulfill its obligations under this Franchise Agreement. The franchisor may require the franchisee at any time to begin to fully comply with the confidential operations manual and system. The Franchisor shall not be obliged to grant any variation to the Franchisee under any circumstances.

To protect the reputation and goodwill associated with the Franchisor’s trademarks and to maintain the uniform standards of quality and operations of the Franchisor, the Franchisee must conduct its Franchise Business in strict accordance with the Confidential Operations Manual, in its amended form. The franchisee will update his manual via the Franchisee Forum intranet system, email, floppy disks, CD-ROM, zip disks or other media for his computer immediately upon receipt or insert new pages in his borrowed copy of the Confidential Operations Manual. All later revised pages or old diskettes must be returned to the franchisor or completely destroyed, burned or destroyed immediately to ensure confidentiality. The franchisor will inform the franchisee what to do after each review.

The Franchisor may, at its sole discretion, review any or all of the content of the Confidential Operations Manual to convey to the Franchisee any new advances and developments in sales, marketing, operational techniques and other elements and procedures relevant to the operation of the Franchisee Business. There will be no additional costs associated with updating the copy of the Confidential Operations Manual provided by the Franchisee. This remains a service funded by the franchisee’s ongoing royalty fees.

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Each franchisor must determine the best strategy, which will work best for their business. It is recommended to speak with a franchise attorney about the legal ways to do this. There is more than one strategy and each franchise company will need to determine what makes the most sense for them. Consider this in 2006.