Preparation of complete documentation describing rules of franchise system functioning. The main purpose of creating the franchise package is optimalization of management processes in franchise system and securing franchisor's know-how. The following documents constitute the most important components of franchise package:

Franchising contract

A franchising contract is the final product of the entire process of system's documentation's preparation, a bracket containing all the components of a franchise package offered by a franchisor. The contract must describe the business model of a franchisor's operation and his know-how, so, logically, it should be developed as one of the final elements of a franchise package.

It would be wrong to assume that adaptation of a commonly available model of a franchising contract, conducted by the franchisor or his legal advisor, is sufficient. It is characteristic of such models that they only contain general descriptions of some issues that should be addressed and regulated. That is quite understandable since the qualities of franchising which are unique and specific i.e. the fact that franchising systems operate in practically all industries, make it impossible to develop one universal model of a franchising contract.

Operational manual

As has already been mentioned, a franchising, agency, or distribution contract is a bracket containing all the components of a system. An operational manual, on the other hand, constitutes the system's backbone which contains the entire know-how of the system's organizer that he makes available to partners. That is why the role of a competently and expertly prepared operational manual is crucial for the system's construction and must not be underestimated.

The functions of an operational manual are twofold. First of all, it contains a register of all rules and procedures on which the system's partners should operate within the system's framework. So, usually, it is an extensive document containing detailed descriptions of all aspects of the system's organizer's activity. On the other hand, thanks to its very detailed character, an operational manual should provide the system's organizer with appropriate protection of his conception of activity, know-how, and trade secrets.

Thanks to experience gained in the process of preparation of numerous operational manuals for operators of franchising systems functioning in various industries, we are able to effectively and quickly identify all the important elements that should be included in a complete operational manual. However, a manual's completion is frequently a laborious process that requires active involvement of the system's organizer who is the best source of reliable and detailed information about his unique know-how that has been tested in practice.

Financial model

The development of a system's financial model is based on experience and data acquired as a result of operation of pilot outlets run by the system's organizer.

After that data has been gathered and analyzed, and after the system's financial model has been developed, crucial questions can be answered concerning investment decisions such as the following:

  • how long, for the system's organizer's company, should be the period of return on investment necessary for the system's creation
  • how long, for the system's outlet's owner's company, should be the period of return on investment necessary for the creation of a franchising, agency, or distribution outlet
  • what amounts of money should the system's organizer and the system's outlet's owner have at their disposal in order to be able to implement the planned investments
  • what can be the possible sources of financing necessary for the system's organizer and for the system's outlet's owner, when should the resources be acquired in order to finance particular stages of a company's construction or development.