Franchisee Agrees to Operate in Accordance with the confidential operations manual
Legal Article GuideBy: Lance Winslow
Every franchisor in modern-day franchising as the confidential operations manual and in this confidential operations manual be franchisee will have all of the required processes they will be using in their franchised outlets. The confidential operations manual also becomes the basis for the initial training that the franchisee will receive as part of the new franchise. When the franchisee or franchise buyer signs the franchise agreements, there should be a clause in these disclosure documents which states; franchisee agrees to operate in accordance with the confidential franchise operations manual.
Below I have provided a copy of the clause in our franchise agreements for my company which addresses this issue;
3.12.3 Franchisee Agrees to Operate in Accordance
The requirements of the Confidential Operations Manual will govern the operation of the Franchised Business. Franchisee will operate their business in accordance with the standards, specifications and procedures set forth in the Confidential Operations Manual. Franchisee will comply with any changes made by Franchisor in such standards, specifications and procedures as may become necessary and desirable from time to time and will accept as reasonable any modifications, revisions and additions and accept that Franchisor exercised in good faith and in its best judgment believed these changes to be necessary and desirable.
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To make sure that your franchise company is protected and that each new incoming franchisee understands that they must to maintain the integrity and Quality of the franchise system and operate within the guidelines outlined within the confidential operations manual it will be necessary to address this issue. Therefore it is advised to contact a knowledgeable and experienced franchise in attorney to draft the proper language into your franchise agreements. Consider this in 2006.
Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/
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