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Elements and Performance Criteria

  1. Identify opportunities for establishing a franchise
  2. Complete business plan
  3. Identify and address learning needs
  4. Finalise agreements
  5. Prepare for opening of franchise

Required Skills

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

research and analysis skills to conduct and plan market research

planning skills to meet learning needs

problemsolving skills to address issues which may arise during franchise establishment

Required knowledge

occupational health and safety OHS requirements

specific to nature and type of franchise

generic to all workplaces

specific to own safety such as manual handling

legislation codes of practice and national standards for example

Franchising Code of Conduct

legislation covering fire safety OHS employment of staff company law antidiscrimination and fair trading

required permits under commonwealth stateterritory and local government regulations and legislation

franchisee specific obligations as per franchise agreement

Evidence Required

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge range statement and the Assessment Guidelines for the Training Package

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential

determining own suitability for the franchise

completing a business plan

identifying and planing learning needs

knowledge of relevant legislation codes of practice and national standards

Context of and specific resources for assessment

Assessment must ensure

access to an actual workplace or simulated environment

access to office equipment and resources

access to examples of real franchisee agreements and related documentation

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge The following examples are appropriate for this unit

direct questioning combined with review of portfolios of evidence and third party workplace reports of onthejob performance by the candidate

review of business plan

analysis of responses to case studies and scenarios

evaluation of documented learning plan

observation of presentations on financing options

oral or written questioning to assess knowledge of franchisee arrangements

observation of performance in role plays

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector workplace and job role is recommended


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Requirements for establishing a specific franchise may include:

availability of finance

availability of franchise opportunity

franchisor specific requirements

own skills and knowledge

Negotiations may include:

fee structure for franchise operation

financing options

franchisee obligations

franchisor requirements and expectations

reasonable adjustments to workplace, equipment or processes to facilitate operation of the franchise

site selection for franchise

Others may include:

accountant

family members

franchisor staff

legal advisor

other franchisees already operating franchises

own network

personal research

Financing options may include:

arrangements with franchisor or third party interest

loan from family members

loan from financial institution

mortgage of existing property or sale of assets

Permits may include:

dangerous goods

fire safety and OHS

local government permits

other commonwealth, state/territory legislation

specific business operations such as liquor licence

Contracts and agreements may include:

lease or purchase of premises

motor vehicles

industry specific tools, plant and equipment

IT and office equipment

Third parties may include:

property owner of site separate to franchisor

silent partners or commercial backers