Operations Manual Security and Restrictions of Usage

The Operations Manual must be kept secure at all times and any loss or theft must be reported immediately as its contents are highly confidential.

This Operations Manual is protected by Copyright and the Terms and Conditions within your Franchise Agreement. You are allowed to use it for the sole purpose of your business and you must not allow any other party to use it unless you receive Head Office permission in writing. It is very important that the Kalma procedures, processes and systems are kept secret to protect the franchisor and franchisees. Its contents cannot be disclosed by any means to any other party. Failure to comply with these Terms and Conditions will be regarded as a serious breach of your franchise agreement.

Operations Manual Overview

The purpose of the Operations Manual is to provide you with all the procedures, processes and systems to run your business.

Areas covered within this Operations Manual include:

1. Business Overview
2. Management Structure
3. Training, Support and Franchise Communications
4. Business Set Up and Operating Procedures
5. Equipment Requirements
6. Franchisee Responsibilities
7. Commencing Business
8. HR and Health and Safety
9. Sales and Marketing
10. Business Operations

We have tried to give you a comprehensive overview of how to run your franchise to achieve success. It is your responsibility though as covered within the Terms and Conditions of your franchise agreement to ensure you are complying with all relevant laws to do with business and employment law.

Franchise Agreement

The signed franchise agreement is the basis of your business. It provides the framework that both the franchisor and franchisee operate under with the objective of building a mutually rewarding and successful business.

You need to be aware of the terms within the agreement that are there to protect both the franchisor and franchisee. Any failure to adhere to the terms of the agreement could lead to termination. Key terms to be aware of which could lead to breach of contract include:

• Failure to provide accounting and management information in a timely manner
• Failure to pay accounts up to date and on time to suppliers of any sort
• Failure to pay franchise fees, pay franchise fees on time and supply invoices
• Failure to actively carry on the business of the franchise including the minimum sales and marketing levels expected
• Any fraudulent activity or selling unauthorised products and / or services
• Distressing the brand, which could affect other franchisees and the franchisor
• Disclosure of confidential information or improper use of marketing and logos
• Breaking the business practices set out in this manual

Termination of Franchise Agreement

On termination of the franchise for whatever reason, the following procedures must be followed:

• Return the Kalma Operations Manual
• Return all Training Manuals and any materials which are linked to Kalma
• Return all Song Books, Session Plans and Templates
• Return all external Manuals
• Return all Kalma stationery, documents, software and printed material
• Remove all signs and notices bearing the name of Kalma
• Cease to call yourself Kalma or a franchsiee of Kalma
• Transfer all customer details and other information relating to the business to Head Office
• Transfer all phone numbers and e-mail addresses to Head Office
• Settle all outstanding accounts with Kalma and any other authorised suppliers
• Transfer or conclude all leases on any vehicles, equipment and premises with reference to Kalma
• Remove all documents and software from any computers and laptops
• Close any social media accounts, emails or any other accounts held in Kalma

Following termination you are not permitted to operate a business in a similar industry sector for a period of 12 months as per the terms of your franchise agreement.  Please refer to the termination clauses within the franchise agreement for full details.

Sale of Your Kalma Franchise

In the event that you decide to sell your franchise you can sell it yourself, appoint an agent or ask Kalma to assist you (for a fee % as per the terms in your franchise agreement).

• Kalma must be given first refusal to buy the franchise at the market price
• Kalma must approve all selling literature
• Kalma must approve the potential buyer but will act reasonably in making this decision
• Transfer all customer details and other information relating to the business to head office and new owner

The buyer of the franchise will have to undertake and pass all relevant training courses as per the terms and costs in your franchise agreement and in the operations manual.

Renewal of Franchise

It is our hope that you will wish to renew your franchise contract at the end of its current term. You can apply to renew the franchise without paying the initial franchise fees again at the end of your current term by giving us between 3 and 6 months written notice before the expiry date (see franchise agreement for more information).