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Elements and Performance Criteria

1. Investigate and implement alternatives to closure
   • Discuss, document and analyse reasons for closure with relevant stakeholders
   • Use lessons learned from previous franchise closures and potential franchise closures to arrive at alternative strategies
   • Research and negotiate alternative strategies to closure with franchisee and relevant third parties
   • Assess feasibility of transferring franchise to new franchisee
   • Implement, where feasible, alternative arrangements to closure including transfer
2. Determine roles and responsibilities in closure or transfer of franchisee
   • Determine roles and responsibilities of all parties in closure or transfer in line with the Franchising Code of Conduct
   • Negotiate process for effecting closure or transfer with relevant stakeholders and document in the form of a plan
   • Allocate responsibilities for effecting closure or transfer
   • Negotiate closing date or transfer date for franchise with relevant stakeholders
3. Implement plan for closure or transfer
   • Communicate closing date or transfer date for franchise to relevant stakeholders
   • Carry out disposal of assets according to plan or transfer them to new franchisee
   • Facilitate financial settlements with financial institutions or franchisor's financial officers or debt collectors
   • Implement arrangements for closure or transfer in consultation with customers
   • Dispose of intellectual property including client database according to agreement between franchisor and franchisee
   • Undertake checks to ensure that the process for closure or transfer has been completed according to plan
4. Review implications for franchise operations
   • Analyse implications for franchise operations from review of closure or transfer
   • Identify and recommended improvements to franchise operations and management of franchises

Required Skills

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities business management skills to develop plans for closure communication and negotiation skills to work with franchisees to implement closure analysis and evaluation skills to determine alternatives to closure problemsolving skills to address issues arising in closure

Required knowledge

legislation codes of practice and national standards relating to occupational health and safety OHS company law fair trading antidiscrimination and other areas specific to the franchise operation Franchising Code of Conduct franchise specific obligations as per franchise agreement as per updates and amendments to 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 planning and evaluation of closure and alternatives consulting all stakeholders involved in closure documenting reasons for closure and incorporating these reasons into plans for future operations knowledge of relevant legislation codes of practice and national standards
Context of and specific resources for assessment	Assessment must ensure access to business documentation access to feedback from franchisees access to an actual workplace or simulated environment access to office equipment and resources
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 documented plans for closure evaluation of alternative closure strategies developed analysis of responses to case studies and scenarios demonstration of techniques observation of presentations oral or written questioning to assess knowledge of franchising arrangements
Guidance information for assessment	Holistic assessment with other units relevant to the industry sector workplace and job role is recommended

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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.
Relevant stakeholders may include:	customers financial institutions and backers for franchisee franchisee other franchisor management staff regulatory authorities issuing relevant permits
Alternative strategies may include:	franchise specific promotion franchisor take-over of operations on a temporary basis until new franchisee is selected negotiating 'grace periods' for debts refinancing resizing of business transferring to new operator combination of these strategies
Roles and responsibilities may include:	disposing of assets informing customers of new arrangements managing financial settlements and handling debtors managing supplier relationships during closure/transfer selecting new franchisees
Disposal of assets may include:	offer to new franchisee/s sale tender

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