Each franchisee in most modern-day franchises will be granted on loan for the duration of the franchise agreements a confidential operations manual to be used in the operation of the franchise outlet. The reason that theses confidential operations manuals are on loan and stipulated as such in the franchise agreements is because this prevents someone from saying that they bought them when they paid for the franchise fee. Also like a library book on loan, it must be returned. This prevents confidential and proprietary information and business know-how from falling into the hands of competitors of the franchise system, which could hurt the entire group of franchises within the company.

It is for this reason, that we decided to add an additional clause into our franchise agreements stipulating such;

3.12.2 On Loan to Franchisee

Franchisee copy of the Confidential Operations Manual is on loan to Franchisee for the duration of this Agreement. It is not Franchisee