Standard Operating Procedures: do you know what they are?

Franchising revolves around duplicating a successful concept. This doesn't just involve the brand and aspects like interior design, but also duplicating the same procedures and methods. You have already discovered a successful way of working, so why should your franchisees do it differently? To achieve this uniformity in working methods and execution procedures, we advise you to implement Standard Operating Procedures (SOPs) in your franchise organization. These are incorporated into the operational handbook, also known as the quality manual.

What is a Standard Operating Procedure (SOP)?

A Standard Operating Procedure is a series of step-by-step instructions compiled by an organization to help franchisees and their employees execute (complex) routine tasks. An SOP ensures a more efficient way of working and a higher quality and uniformity in the result. An additional advantage is that miscommunication and incorrect adherence to a procedure are reduced by an SOP.

With good Standard Operating Procedures, you receive fewer questions from franchisees as a franchisor. 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 just by reading the manual (SOP).

A very good example of this is McDonald's. The French fries at McDonald's in Bangkok taste exactly the same as the French fries in Amsterdam. Why? Partly because every McDonald's uses the same ingredients. On the other hand, because the French fries are prepared in precisely the same way by every employee, at every McDonald's around the world. This is based on McDonald's Standard Operating Procedure for making the fries. It describes, among other things:

• How boxes should be loaded from the truck.
• The temperature at which the freezer should be set.
• Which tools to use to fry the fries.
• How many fries go into the fryer at a time.
• The temperature of the oil.
• How to ensure the fries stay in the fryer for the exact right time.
• The amount of salt to be added after removing them from the fryer.

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 why McDonald's has become so successful worldwide. People can endlessly replicate the experience they enjoyed in one place at the same and other locations.

When to use a Standard Operating Procedure?

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

1. During the start of the franchise business

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

2. The operation of the franchise business

For daily operations, the franchisor should develop Standard Operating Procedures regarding all aspects of managing the franchise location by the franchisee. Consider warehouse management, financial management, marketing, customer service, and manuals for delivering products or services. In the case of a restaurant, for example, the preparation of various dishes. In the case of a mortgage lender, for example, the steps in determining and applying for the right mortgage for a customer.

3. Parting with a franchisee

What steps need to be taken to properly organize all matters concerning parting with a franchisee? Consider the steps to find a new franchisee, calculate goodwill, and retrieve previously issued items like the franchise manual, etc.

Having your internal affairs in order? Then you create higher customer satisfaction

It is crucial for your franchise organization to have Standard Operating Procedures. This way, you improve internal processes within the franchise organization and help franchisees and employees provide a consistent customer experience. Regardless of how good your product or service is, there is no faster way to lose a customer than by offering an inconsistent experience.

The benefits of Standard Operating Procedures:

• Faster and cheaper training of franchisees and employees
• Increase efficiency
• Reduce errors
• Provide a more consistent and better customer experience
• Ideal for complex routine tasks

Enormous value for your franchise organization, if implemented correctly

In short, well-described and executed Standard Operating Procedures create enormous value for your franchise organization. But beware: SOPs that must be performed with cumbersome paper manuals full of difficult-to-understand language often backfire. If people do not understand the Standard Operating Procedure, mistakes are made, and they are ignored the next time. To be effective, Standard Operating Procedures must be accessible in modern tools where feedback loops are built-in. A feedback loop means that the reader can easily and quickly provide feedback on an SOP so that the central organization can quickly update and improve it based on practical experience. Standard Operating Procedures can be continuously improved, 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 for the future of your franchise organization!