Franchisee renewals with a franchise manual, are often treated as procedural milestones, but they should not be. A renewal is a critical decision point for both the franchisee and the franchisor, and it deserves strategic attention.

Among the many factors a franchisee will consider when deciding to renew is how the franchise system has evolved since they joined. An important, often overlooked, part of that assessment is the franchise manual.

The franchise agreement will almost certainly refer to the franchise manual, often extensively.

And the franchise manual outlines how the franchise system operates, what is expected from franchisees, and what support the franchisor will provide in return. It is, in many respects, the brand and operational embodiment of the agreement. That makes it essential that the franchise manual is current, relevant, and aligned with how the franchise actually runs today.

Most franchisors put considerable care and legal input into their franchise agreement.

Yet, paradoxically, many do not apply the same level of ongoing attention to their franchise manual and supporting policies. Over time, the gap between what is legally agreed and what is practically delivered can widen – sometimes to the point that a franchise manual can no longer be issued. This is not just a risk to operational clarity, it can also weaken confidence in the system during renewal discussions.

Importantly, we should never assume a franchisee will simply renew. Even long-standing franchisees will weigh up their options. They will consider their satisfaction, performance, market prospects, lifestyle goals, and how supported they feel. The professionalism and relevance of system documentation, especially the manual, can and should play an influential role in shaping that decision.

So is it acceptable to renew a franchisee into a further term using a franchise manual that is out of date?

The answer, unequivocally, is no.

An outdated franchise manual can be misleading at best and legally risky at worst. It can also undermine franchisee confidence, particularly where there is a mismatch between what is documented and what is delivered. When systems have changed over time, and they inevitably do, manuals must evolve accordingly. Renewing a franchisee without addressing this leaves both parties exposed.

This is especially important because many franchisees recruited five or ten years ago may now be operating in a very different system. The support structure may have changed, branding and product offers may have shifted, and technology may play a much greater role and involve new types of fees. In many cases, the franchise system itself may have grown significantly, with new regions, larger teams, and more sophisticated infrastructure. These developments must be reflected in the franchise manual. They also need to be explained to renewing franchisees as part of a transparent process that supports informed decision-making.

A franchise manual that is up to date signals that the franchise system is not only professional, but also progressive and responsible. It tells new and renewing franchisees alike that the franchisor is actively investing in the system, keeping up with market and regulatory change, and ensuring franchisees are well equipped to succeed. It also signals that the franchisor understands its obligations.

Franchisees notice these things. They talk to each other.

And how professional your documentation looks, reads and feels matters. It affects perceptions of credibility, leadership and trustworthiness. In today’s market, those perceptions can influence both retention and recruitment.

We recommend franchisors carefully review and update their franchise manuals ahead of each renewal cycle. Doing so provides an opportunity to clarify expectations, ensure consistency, and reinforce the professionalism of the system. It also provides a moment to engage in genuine two-way discussion about what has changed, what is working, and what may require additional clarification or support.

Franchisors should also be aware of the potential risks in this process. If an updated franchise manual includes new obligations or costs for franchisees, such as new software, compliance processes or branding requirements, these must be introduced thoughtfully. Franchisees need the chance to understand the rationale, assess the implications, and prepare accordingly. Transparency here is not just best practice, it is foundational to trust.

In our work reviewing franchise manuals across sectors, we frequently encounter common gaps or outdated content in areas such as:

• Support Office roles and responsibilities
• Current marketing channels and digital assets
• Technology systems and software integration
• Brand standards and customer experience protocols
• Franchisee obligations under new legislation or regulation
• HR management processes and staff expectations
• Contingency planning for weather events and natural disasters
• The evolving role of field support and performance coaching
• The interface between the manual and intranet resources
• Emerging operational practices including the formal use of AI tools
• The system’s approach to benchmarking and performance comparison

A strong franchise manual is never static.

It should be a living document that evolves with the system, reflecting both operational improvements and shifts in market conditions. That evolution signals a maturing, well-led system. But it also needs to be well managed. Not all franchisees will welcome change equally, and some will rightly push back on updates they perceive as burdensome or inconsistent with their original understanding.

When a franchisee reaches the point of renewal, the quality of your franchise manual will influence their decision, even if it is never raised directly. A manual that reflects the current reality of your system, communicates expectations clearly, and shows investment in ongoing improvement can support confidence and trust. It helps set the tone for a productive next term. A franchise manual that is outdated, unclear or inconsistent does the opposite.

Need support reviewing and updating your franchise manuals or policies ahead of renewal discussions?

We can help assess gaps, recommend improvements, and support communication with franchisees in a way that strengthens trust and system performance.

Let’s talk. Connect with Callum Floyd on LinkedIn or email us at callum@franchize.co.nz to start a conversation.

Contact Franchize Consultants if you would like to discuss our franchisor services. We’d be very happy to sit down with you to understand your business and objectives. You can also follow us via LinkedIn, Facebook, Instagram and Google.