This unit applies to potential franchisees who will operate under formal franchising agreements and focuses on the planning aspects of the establishment of a franchise.

ELEMENT

PERFORMANCE CRITERIA

1. Identify opportunities for establishing a franchise

1.1. Research and identify franchising opportunities

1.2. Determine own interests and skills to assess suitability for identified opportunities

1.3. Determine requirements for establishing a specific franchise

1.4. Research and check viability and business record of franchisor in prospective franchise

1.5. Enter into negotiations with a franchisor to establish a franchise

2. Complete business plan

2.1. Access business plan proforma, as appropriate

2.2. Consult franchisor and others in process of developing business planning documents

2.3. Research and determine financing options

2.4. Finalise financial planning for franchise

2.5. Undertake market analysis for franchise opportunity and complete marketing plan

2.6. Research and determine needs for premises in appropriate area

2.7. Compile relevant information into business plan

3. Identify and address learning needs

3.1. Determine required skills and knowledge to manage a franchise, and identify gaps for self and others

3.2. Seek assistance to assess and address learning needs and document these in the form of a learning plan

3.3. Determine training required by franchisor of a franchisee

3.4. Undertake learning plan and required training programs

4. Finalise agreements

4.1. Complete finance agreements

4.2. Access legal advice as required

4.3. Finalise and sign off franchising agreement

4.4. Obtain required permits for franchise operation

4.5. Finalise contracts and agreements with third parties

5. Prepare for opening of franchise

5.1. Obtain physical and human resources required to manage franchise

5.2. Undertake marketing activities associated with opening the franchise

5.3. Open the franchise for business

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

problem-solving 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, anti-discrimination and fair trading

required permits (under commonwealth, state/territory and local government regulations and legislation)

franchisee specific obligations as per franchise agreement.

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 on-the-job 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.

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

Unit sector

Management and Leadership - Franchising

This unit contains employability skills.