This unit applies to franchisors managing an existing franchise operation to support franchisees and meet franchisor obligations under the particular franchising agreement entered into with those franchisees.

ELEMENT

PERFORMANCE CRITERIA

1. Establish procedures for managing a franchise operation

1.1. Determine obligations of both parties under franchising agreement

1.2. Develop procedures for ensuring compliance with franchising obligations and legislative requirements

1.3. Develop and communicate to franchises reporting requirements for franchisees

2. Implement procedures for managing a franchise operation

2.1. Implement procedures for franchises to ensure compliance with franchising obligations and legislative requirements

2.2. Identify instances of non-compliance and act upon them in conjunction with franchises

2.3. Monitor reports from franchises for completeness, accuracy and timeliness of submission

2.4. Identify potential disputes with franchises and take action to resolve potential disputes before they eventuate

2.5. Resolve disputes that eventuate and reach an agreed settlement within established procedures as documented in the Franchising Code of Conduct

3. Review a franchise operation

3.1. Use monitoring of franchises to inform review process for franchise operation

3.2. Identify improvements in franchise operation and management of franchises from monitoring franchises' business operations

3.3. Make recommendations to improve the effectiveness of the franchise operation and individual franchises

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

communication and negotiation skills to address potential disputes

analysis skills to monitor and review franchise performance.

Required knowledge

legislation, codes of practice and national standards relating to occupational health and safety (OHS), company law, fair trading, anti-discrimination 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 the agreement over time.

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:

documenting franchising agreement, including franchisee obligations

taking action to ensure franchisee compliance with obligations and addressing non-compliance

improving franchise operations based on feedback and monitoring activities

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 procedures implemented for franchises to ensure compliance with franchising obligations and legislative requirements

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, for example:

BSBFRA501B Establish a franchise operation.

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.

Franchising obligations may include:

fees and pricing structures

franchise corporate image requirements and branding

merchandising requirements

quality assurance requirements

reporting of income, sales and turnover

stock control and inventory requirements, and reporting of this information

Legislative requirements may include:

Australian Taxation Office requirements, including requirements to register as a business and obtain an Australian Business Number (ABN)

Dangerous Goods Act requirements

fire regulations

food safety requirements

Liquor Licensing Act requirements

local government planning and land use zoning regulations

OHS requirements

other legislative requirements specific to the nature and type of franchise

relevant permits, licences and completion of training programs such as in safe food handling

requirements under employment legislation

Reporting requirements may include:

accident and incident reporting and recording

customer numbers and turnover

income, expenditure and other financial reports

stock levels and inventory control

Unit sector

Management and Leadership - Franchising

This unit contains employability skills.