BSBFRA501B
Establish a franchise operation

This unit describes the performance outcomes, skills and knowledge required to establish a franchising operation from an existing business, chain of businesses or planned concept.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Application

This unit applies to franchisors with a well established, sound theoretical knowledge base in franchising who are proficient in using a range of specialised technical and managerial techniques to plan and establish a franchise operation.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

1. Research feasibility of establishing a franchise operation

1.1. Undertake research into franchising models

1.2. Analyse existing business or planned concept to determine opportunity for expansion into franchise operation

1.3. Undertake market research on product or service

1.4. Undertake financial feasibility of proposed franchise operation

1.5. Seek assistance with feasibility study from specialists and relevant parties as required

1.6. Complete business plan for franchise operation

1.7. Complete marketing plan for franchise operation

2. Plan for establishment of a franchise operation

2.1. Secure financial backing for franchise operation

2.2. Define franchise concept in terms of roles and responsibilities of franchisor and franchisees

2.3. Seek advice from specialists and relevant parties to complete documentation of franchising concept

2.4. Develop and document procedures to guide franchisees' and franchisor's operations

2.5. Determine human and physical resources required to commence franchise operation

2.6. Develop, obtain agreement on and implement recruitment strategies for potential franchise

3. Implement plan for establishment of a franchise operation

3.1. Undertake marketing of franchise operation

3.2. Identify franchisees to commence franchise operation and formalise agreements

3.3. Assist franchisees in developing a business plan and a marketing plan

3.4. Obtain physical and human resources to implement franchise operation

3.5. Establish operational unit to support and coordinate franchise operation

3.6. Develop and implement monitoring process for managing franchise operation

4. Review implementation process

4.1. Develop and implement review process for implementation of franchise operation

4.2. Identify improvements in franchising operation and associated management processes

4.3. Identify and implement improvements and monitor for effectiveness

Required Skills

Required skills

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

marketing skills to promote new franchises

problem-solving skills to resolve issues in commencement of operations and new franchises.

Required knowledge

occupational health and safety (OHS) requirements specific to the nature and type of franchising operations

legislation, codes of practice and national standards, for example:

legislation specific to nature and type of franchising operations

company law, fair trading and anti-discrimination

Franchising Code of Conduct

financing options

franchising operations.

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:

carrying out initial research into feasibility of the franchise operation

documenting a business plan, through to implementing the plan

establishing an agreement with franchisees which specifies roles and responsibilities of both parties

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 on-the-job performance by the candidate

review of financial feasibility study, marketing plan and business plan

analysis of responses to case studies and scenarios

demonstration of techniques

observation of presentations

oral or written questioning to assess knowledge of franchising arrangements

evaluation of implemented recruitment strategies.

Guidance information for assessment

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

BSBFRA502B Manage a franchise operation.


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.

Specialists and relevant parties may include:

accountants, legal representatives, financial planners and financial institution representatives, business planning specialists, marketing specialists and franchising consultants

chambers of commerce

Franchise Council of Australia

Roles and responsibilities of franchisor and franchisees may include:

agreement between franchisor and franchisees

conditions for franchises

services provided to franchises

Franchisees may include:

chain of outlets

existing businesses

interested parties including a trial sample of franchises

Human and physical resources may include:

communications equipment

office premises

software and hardware

specialist services through outsourcing, contracting and consultancy

staff

vehicles

Operational unit may include:

home-based site or other location such as leased or owned property

office location staffed with required personnel and equipped to service and support franchisees


Sectors

Unit sector


Competency Field

Management and Leadership - Franchising


Employability Skills

This unit contains employability skills.


Licensing Information

Not applicable.