Standard Operating Procedures: Do you know what they are?

Franchising is all about replicating a successful concept. This doesn't just involve the brand and, for example, the interior, but also replicating the same procedures and working methods. You've already invented a successful way of working, so why should your franchisees do it differently? To achieve this uniformity in working methods and procedures, we recommend implementing Standard Operating Procedures (SOPs) within your franchise organization. These are incorporated into the operational manual, also known as the quality manual.

What is a Standard Operating Procedure (SOP)?

A Standard Operating Procedure is a set of step-by-step instructions compiled by an organization to help franchisees and their employees perform (complex) routine tasks. An SOP ensures a more efficient way of working and higher quality and uniformity in the results. An additional benefit is that an SOP reduces miscommunication and incorrect adherence to a working method.

With good Standard Operating Procedures, you, as a franchisor, will receive fewer questions from franchisees. As a franchisor, you can document and explain everything franchisees and their employees need to do regularly to run their business in an SOP. A Standard Operating Procedure is described in great detail. Entrepreneurs who have no idea how to run a fast-food business can become experts simply by reading the manual (SOP).

McDonald's is a great example. The French fries at McDonald's in Bangkok taste exactly the same as the fries in Amsterdam. Why? Firstly, because every McDonald's uses the same ingredients. Secondly, because the French fries are prepared in exactly the same way by every employee at every McDonald's worldwide. This is based on McDonald's Standard Operating Procedure for making the fries. This procedure describes, among other things:

• How the boxes are loaded from the truck.
• The temperature the freezer should be set to.
• The equipment used to fry the fries.
• How many fries go in the fryer at a time.
• The oil temperature.
• How to ensure the fries stay in the fryer for exactly the right amount of time.
• The amount of salt to be added after removing them from the fryer.

The end result? Delicious and recognizable McDonald's fries that taste exactly the same in all McDonald's locations. This is one of the main reasons McDonald's has become so successful worldwide. People can repeat the experience they had in one place endlessly, both in the same and other locations.

When do you use a Standard Operating Procedure?

There are no standard Standard Operating Procedure templates. Every company is unique and has its own working methods and procedures that need to be described. A Standard Operating Procedure can be divided into three phases of running a business:

1. During the start-up of the franchise

Consider SOPs that support the franchisee in starting up their business. For example, they specify the steps the entrepreneur must take to prepare the location for the opening and which parts of the training manual the franchisee must complete.

2. Franchise business operations

For daily operations, the franchisor must develop Standard Operating Procedures covering all aspects related to the franchisee's management of the franchise location. These include warehouse management, financial management, marketing, customer service, and manuals for delivering products or services. In the case of a restaurant, this might include the preparation of various dishes. In the case of a mortgage lender, this might include the steps involved in determining and applying for the right mortgage for a client.

3. Saying goodbye to a franchisee

What steps must be taken to properly handle all matters surrounding the departure of a franchisee? These include the steps required to find a new franchisee, calculating goodwill, collecting previously issued materials such as the franchise manual, and so on.

Are your internal affairs in order? Then you'll create higher customer satisfaction.

Having Standard Operating Procedures is crucial for your franchise organization. This improves internal processes within the franchise organization and helps franchisees and employees provide a consistent customer experience. No matter how good your product or service is, there's no faster way to lose a customer than by providing an inconsistent experience.

The benefits of Standard Operating Procedures:

• Faster and cheaper training for franchisees and employees
• Increased efficiency
• Reduced errors
• Provided a more consistent and better customer experience
• Ideal for complex routine operations

Immense value for your franchise organization, if implemented correctly

In short, well-written and implemented Standard Operating Procedures create enormous value for your franchise organization. But beware: SOPs that have to be implemented with clunky paper manuals full of difficult-to-understand language are often counterproductive. If people don't understand the Standard Operating Procedure, mistakes are made and ignored the next time. To be effective, Standard Operating Procedures must be accessible in modern tools with built-in feedback loops. A feedback loop allows the reader to easily and quickly provide feedback on an SOP, allowing the central organization to quickly update and improve it based on practical experience. This allows for continuous improvement of Standard Operating Procedures, and quality and efficiency within the organization can be continuously increased based on practical experience.

Good online communication systems, clear instructions, and transparent policies are essential for franchise organizations to become and remain market leaders. Standard Operating Procedures are therefore indispensable.