Tom’s Franchise Information Blog

As a franchise buyer there is no doubt you’ve read all the Franchisor’s Brochures, been through their website, and indeed, looked at your share of FDDs or Franchise Disclosure Documents. Have you noticed the intense use of the concept of Confidential Operations Manuals? Do you know why this is?

Well, it’s because the Franchisor has a system of doing business and this business model has been (or should be) proven over time. All the mistakes that the Franchisor had made developing their concept, are built out of the business. Likewise all the great ideas and innovations that proved successful are well documented in the “secret” plan or Confidential Operations Manual.

Thus, you can understand what an integral part of the operations this manual is and why the Franchisor goes out of his way in the franchise agreement to protect it upon termination. Also you can see why the franchising company has all sorts of stipulations on its use, the approved methods and maintaining secrecy at all costs. Remember these methods have come at a high cost in real dollars.

A competitor who had a copy of the Confidential Operations Manual would have an advantage in the market place and be able to quickly move up without making any mistakes, putting all the franchisees in the system at risk. As a former Franchise Founder myself, I can tell you that our manuals were very important and the last thing in the world I’d ever want my competition to have.

Perhaps this gives you a little idea of just how valuable these secrets are and why in the franchising industry we go out of our way to protect them legally. Think on this.

“Lance Winslow” – Franchising Resource. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/.