Achieving system compliance for your franchise
by
Norton Rose
The franchisor should clearly outline the expected standards to which the franchisee and their employees will be required to adhere. These standards will usually be presented to the franchisee in the form of an operations manual.
The franchisor should ensure that the operations manual is readable and sets out a practical summary of laws, regulations and organisational standards. It should also detail the operational procedures for particular units within the organisation and contain practical examples applicable to the organisation. The operations manual can be prepared by the franchisor, with the assistance of an experienced franchise consultant. It should, however, be reviewed by a lawyer to ensure it is consistent with the franchise agreement and disclosure document and does not expose the franchisor to liability.
The franchise agreement should provide the franchisor with rights of inspection to ensure compliance. It is important that the agreement facilitates enforcement of standards, even to the extent of ultimately enabling the termination of the franchise agreement.
See the running a franchise and buying a franchise pages for further assistance.
The article was created by Deacons and appears courtesy of Austrade . 10.07.2007
FCA Member
Contact Norton Rose
Tel: 03 8686 6000
Fax: 03 8686 6505
