Unit of competency Outline
Date retreived
22/07/2026 11:25 AM AWST
22/07/2026 11:25 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Manage a franchise operation
Manage a franchise operation
Unit of competency
National Code
BSBFRA502A
BSBFRA502A
State Code
C7024
C7024
TGA Status
Deleted
Deleted
DTWD Status
Deleted
Deleted
State Implementation and Classification
Approved Date
12/08/2004
Field of Education
080301 - Business Management
Original Release Date
12/08/2004
Nominal Hours
40
Description
This unit specifies the outcomes required for franchisors to manage a franchise operation. This unit applies to franchisors managing an existing franchise operation to support franchisees and meet franchisor obligations under the franchising agreement entered into with franchisees. This unit specifies the outcomes required for franchisors to manage a franchise operation. This unit applies to franchisors managing an existing franchise operation to support franchisees and meet franchisor obligations under the franchising agreement entered into with franchisees.
Notes
Elements and Performance Criteria
1 Establish procedures for managing a franchise operation
- 1.1 Obligations of both parties under franchising agreement are determined
- 1.2 Procedures for ensuring compliance with franchising obligations and legislative requirements are developed
- 1.3 Reporting requirements for franchisees are developed and communicated to franchises
2 Implement procedures for managing a franchise operation
- 2.1 Procedures for ensuring compliance with franchising obligations and legislative requirements are implemented with franchises
- 2.2 Instances of non-compliance are identified and acted upon in conjunction with franchises
- 2.3 Reports from franchises are monitored for completeness, accuracy and timeliness of submission
- 2.4 Potential disputes with franchises are identified and actions taken to resolve potential disputes before they eventuate
- 2.5 Disputes that eventuate and reach an agreed settlement are resolved within established procedures
3 Review a franchise operation
- 3.1 Monitoring of franchises is used to inform review process for franchise operation
- 3.2 Improvements in franchise operation and management of franchises are identified from monitoring of franchises' business operations
- 3.3 Recommendations are made to improve the effectiveness of the franchise operation and individual franchises
The Range Statement adds definition to the unit by elaborating critical or significant aspects of the performance requirements of the unit. The Range Statement establishes the range of indicative meanings or applications of these requirements in different operating contexts and conditions. The specific aspects which require elaboration are identified by the use of italics in the Performance Criteria.
Legislation, codes and national standards relevant to the workplace which may include:
award and enterprise agreements and relevant industrial instruments
relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination
relevant industry codes of practice
Franchising obligations may refer to:
reporting of income, sales and turnover
quality assurance requirements
fees and pricing structures
stock control and inventory requirements, and reporting of this information
merchandising requirements
franchise corporate image requirements and branding
Legislative requirements may include:
occupational health and safety (OHS) requirements
fire regulations
relevant permits, licences and completion of training programs such as in safe food handling
Australian Taxation Office requirements, including requirements to register as a business and obtain an ABN
local government planning and land use zoning regulations
requirements under employment legislation
Dangerous Goods Act requirements
Liquor Licensing Act requirements
food safety requirements
other legislative requirements specific to the nature and type of franchise
Reporting requirements may relate to:
income, expenditure and other financial reports
stock levels and inventory control
customer numbers and turnover
accident and incident reporting and recording
Procedures for dispute resolution are:
documented as part of the requirements of the Franchising Code of Conduct
The Range Statement adds definition to the unit by elaborating critical or significant aspects of the performance requirements of the unit. The Range Statement establishes the range of indicative meanings or applications of these requirements in different operating contexts and conditions. The specific aspects which require elaboration are identified by the use of italics in the Performance Criteria.
Legislation, codes and national standards relevant to the workplace which may include:
award and enterprise agreements and relevant industrial instruments
relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination
relevant industry codes of practice
Franchising obligations may refer to:
reporting of income, sales and turnover
quality assurance requirements
fees and pricing structures
stock control and inventory requirements, and reporting of this information
merchandising requirements
franchise corporate image requirements and branding
Legislative requirements may include:
occupational health and safety (OHS) requirements
fire regulations
relevant permits, licences and completion of training programs such as in safe food handling
Australian Taxation Office requirements, including requirements to register as a business and obtain an ABN
local government planning and land use zoning regulations
requirements under employment legislation
Dangerous Goods Act requirements
Liquor Licensing Act requirements
food safety requirements
other legislative requirements specific to the nature and type of franchise
Reporting requirements may relate to:
income, expenditure and other financial reports
stock levels and inventory control
customer numbers and turnover
accident and incident reporting and recording
Procedures for dispute resolution are:
documented as part of the requirements of the Franchising Code of Conduct
Legislation, codes and national standards relevant to the workplace which may include:
award and enterprise agreements and relevant industrial instruments
relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination
relevant industry codes of practice
Franchising obligations may refer to:
reporting of income, sales and turnover
quality assurance requirements
fees and pricing structures
stock control and inventory requirements, and reporting of this information
merchandising requirements
franchise corporate image requirements and branding
Legislative requirements may include:
occupational health and safety (OHS) requirements
fire regulations
relevant permits, licences and completion of training programs such as in safe food handling
Australian Taxation Office requirements, including requirements to register as a business and obtain an ABN
local government planning and land use zoning regulations
requirements under employment legislation
Dangerous Goods Act requirements
Liquor Licensing Act requirements
food safety requirements
other legislative requirements specific to the nature and type of franchise
Reporting requirements may relate to:
income, expenditure and other financial reports
stock levels and inventory control
customer numbers and turnover
accident and incident reporting and recording
Procedures for dispute resolution are:
documented as part of the requirements of the Franchising Code of Conduct
The Range Statement adds definition to the unit by elaborating critical or significant aspects of the performance requirements of the unit. The Range Statement establishes the range of indicative meanings or applications of these requirements in different operating contexts and conditions. The specific aspects which require elaboration are identified by the use of italics in the Performance Criteria.
Legislation, codes and national standards relevant to the workplace which may include:
award and enterprise agreements and relevant industrial instruments
relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination
relevant industry codes of practice
Franchising obligations may refer to:
reporting of income, sales and turnover
quality assurance requirements
fees and pricing structures
stock control and inventory requirements, and reporting of this information
merchandising requirements
franchise corporate image requirements and branding
Legislative requirements may include:
occupational health and safety (OHS) requirements
fire regulations
relevant permits, licences and completion of training programs such as in safe food handling
Australian Taxation Office requirements, including requirements to register as a business and obtain an ABN
local government planning and land use zoning regulations
requirements under employment legislation
Dangerous Goods Act requirements
Liquor Licensing Act requirements
food safety requirements
other legislative requirements specific to the nature and type of franchise
Reporting requirements may relate to:
income, expenditure and other financial reports
stock levels and inventory control
customer numbers and turnover
accident and incident reporting and recording
Procedures for dispute resolution are:
documented as part of the requirements of the Franchising Code of Conduct
The Evidence Guide provides advice to inform and support appropriate assessment of this unit. It contains an overview of the assessment requirements followed by identification of specific aspects of evidence that will need to be addressed in determining competence. The Evidence Guide is an integral part of the unit and should be read and interpreted in conjunction with the other components of competency. Assessment must reflect the endorsed Assessment Guidelines of the parent Training Package.
Overview of Assessment Requirements
A person who demonstrates competence in this unit must be able to provide evidence of efficient and effective management of franchises under own area of responsibility. Management role and responsibilities will be detailed in the franchising agreement and organisational documentation and include ensuring compliance with franchisee obligations and legislative requirements.
Specific Evidence Requirements
Required knowledge and understanding include:
legislation, codes of practice and national standards relating to 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
Required skills and attributes include:
ability to relate to people from a range of social, cultural and ethnic backgrounds, and physical and mental abilities
management skills
OHS skills
communication skills including negotiation skills
problem-solving skills
monitoring and review skills
attributes
- attention to detail
- thoroughness
Key competencies or generic skills relevant to this unit
The seven key competencies represent generic skills considered essential for effective work participation. Innovation skills represent a further area of generic competence. The bracketed numbering indicates the performance level required in this unit:
Level (1) represents the competence to undertake tasks effectively
Level (2) represents the competence to manage tasks
Level (3) represents the competence to use concepts for evaluating and reshaping tasks
The bulleted points provide examples of how the key competencies can be applied for this unit.
Communicating ideas and information (3)
communicating verbally including negotiating and consulting
communicating in writing to complete required documentation
Collecting, analysing and organising information (3)
analysis associated with review of operations
Planning and organising activities (3)
planning and organising management of franchises
Working in a team (2)
working with staff
working with franchisees
Using mathematical ideas and techniques (-)
not applicable
Solving problems (2)
applying problem-solving to issues arising in operation of franchises
Using technology (1)
using word processing software and specific software packages
Innovation skills (-)
not applicable
Products that could be used as evidence include:
documented actions taken to ensure compliance of franchises and address instances of non-compliance
documented resolutions of disputes between franchisees and franchisor
correspondence and records of communications and visits to support franchises
records made in monitoring franchises
identified improvements in franchise operations
Processes that could be used as evidence include:
how compliance has been monitored and issues of non-compliance addressed
how disputes with franchisees were resolved
how franchises were supported
how franchises were monitored
how franchise operations have been reviewed
Resource implications for assessment include:
access to workplace documentation
Validity and sufficiency of evidence requires:
that where assessment is part of a learning experience, evidence will need to be collected over a period of time, involving both formative and summative assessment
evidence of a managing a franchise operation over a period of time to support franchises in either an actual workplace situation or in a simulated workplace
Integrated competency assessment means:
that this unit can be assessed alone or as part of an integrated assessment activity involving other relevant units in franchising and strategic management and including:
- BSBFRA501A Establish a franchise operation
- BSBFRA503A Manage establishment of new sites or regions
- BSBFRA504A Manage relationship with franchisees
- BSBFRA505A Manage closure of a franchise
The Evidence Guide provides advice to inform and support appropriate assessment of this unit. It contains an overview of the assessment requirements followed by identification of specific aspects of evidence that will need to be addressed in determining competence. The Evidence Guide is an integral part of the unit and should be read and interpreted in conjunction with the other components of competency. Assessment must reflect the endorsed Assessment Guidelines of the parent Training Package.
Overview of Assessment Requirements
A person who demonstrates competence in this unit must be able to provide evidence of efficient and effective management of franchises under own area of responsibility. Management role and responsibilities will be detailed in the franchising agreement and organisational documentation and include ensuring compliance with franchisee obligations and legislative requirements.
Specific Evidence Requirements
Required knowledge and understanding include:
legislation, codes of practice and national standards relating to 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
Required skills and attributes include:
ability to relate to people from a range of social, cultural and ethnic backgrounds, and physical and mental abilities
management skills
OHS skills
communication skills including negotiation skills
problem-solving skills
monitoring and review skills
attributes
- attention to detail
- thoroughness
Key competencies or generic skills relevant to this unit
The seven key competencies represent generic skills considered essential for effective work participation. Innovation skills represent a further area of generic competence. The bracketed numbering indicates the performance level required in this unit:
Level (1) represents the competence to undertake tasks effectively
Level (2) represents the competence to manage tasks
Level (3) represents the competence to use concepts for evaluating and reshaping tasks
The bulleted points provide examples of how the key competencies can be applied for this unit.
Communicating ideas and information (3)
communicating verbally including negotiating and consulting
communicating in writing to complete required documentation
Collecting, analysing and organising information (3)
analysis associated with review of operations
Planning and organising activities (3)
planning and organising management of franchises
Working in a team (2)
working with staff
working with franchisees
Using mathematical ideas and techniques (-)
not applicable
Solving problems (2)
applying problem-solving to issues arising in operation of franchises
Using technology (1)
using word processing software and specific software packages
Innovation skills (-)
not applicable
Products that could be used as evidence include:
documented actions taken to ensure compliance of franchises and address instances of non-compliance
documented resolutions of disputes between franchisees and franchisor
correspondence and records of communications and visits to support franchises
records made in monitoring franchises
identified improvements in franchise operations
Processes that could be used as evidence include:
how compliance has been monitored and issues of non-compliance addressed
how disputes with franchisees were resolved
how franchises were supported
how franchises were monitored
how franchise operations have been reviewed
Resource implications for assessment include:
access to workplace documentation
Validity and sufficiency of evidence requires:
that where assessment is part of a learning experience, evidence will need to be collected over a period of time, involving both formative and summative assessment
evidence of a managing a franchise operation over a period of time to support franchises in either an actual workplace situation or in a simulated workplace
Integrated competency assessment means:
that this unit can be assessed alone or as part of an integrated assessment activity involving other relevant units in franchising and strategic management and including:
- BSBFRA501A Establish a franchise operation
- BSBFRA503A Manage establishment of new sites or regions
- BSBFRA504A Manage relationship with franchisees
- BSBFRA505A Manage closure of a franchise
Overview of Assessment Requirements
A person who demonstrates competence in this unit must be able to provide evidence of efficient and effective management of franchises under own area of responsibility. Management role and responsibilities will be detailed in the franchising agreement and organisational documentation and include ensuring compliance with franchisee obligations and legislative requirements.
Specific Evidence Requirements
Required knowledge and understanding include:
legislation, codes of practice and national standards relating to 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
Required skills and attributes include:
ability to relate to people from a range of social, cultural and ethnic backgrounds, and physical and mental abilities
management skills
OHS skills
communication skills including negotiation skills
problem-solving skills
monitoring and review skills
attributes
- attention to detail
- thoroughness
Key competencies or generic skills relevant to this unit
The seven key competencies represent generic skills considered essential for effective work participation. Innovation skills represent a further area of generic competence. The bracketed numbering indicates the performance level required in this unit:
Level (1) represents the competence to undertake tasks effectively
Level (2) represents the competence to manage tasks
Level (3) represents the competence to use concepts for evaluating and reshaping tasks
The bulleted points provide examples of how the key competencies can be applied for this unit.
Communicating ideas and information (3)
communicating verbally including negotiating and consulting
communicating in writing to complete required documentation
Collecting, analysing and organising information (3)
analysis associated with review of operations
Planning and organising activities (3)
planning and organising management of franchises
Working in a team (2)
working with staff
working with franchisees
Using mathematical ideas and techniques (-)
not applicable
Solving problems (2)
applying problem-solving to issues arising in operation of franchises
Using technology (1)
using word processing software and specific software packages
Innovation skills (-)
not applicable
Products that could be used as evidence include:
documented actions taken to ensure compliance of franchises and address instances of non-compliance
documented resolutions of disputes between franchisees and franchisor
correspondence and records of communications and visits to support franchises
records made in monitoring franchises
identified improvements in franchise operations
Processes that could be used as evidence include:
how compliance has been monitored and issues of non-compliance addressed
how disputes with franchisees were resolved
how franchises were supported
how franchises were monitored
how franchise operations have been reviewed
Resource implications for assessment include:
access to workplace documentation
Validity and sufficiency of evidence requires:
that where assessment is part of a learning experience, evidence will need to be collected over a period of time, involving both formative and summative assessment
evidence of a managing a franchise operation over a period of time to support franchises in either an actual workplace situation or in a simulated workplace
Integrated competency assessment means:
that this unit can be assessed alone or as part of an integrated assessment activity involving other relevant units in franchising and strategic management and including:
- BSBFRA501A Establish a franchise operation
- BSBFRA503A Manage establishment of new sites or regions
- BSBFRA504A Manage relationship with franchisees
- BSBFRA505A Manage closure of a franchise
The Evidence Guide provides advice to inform and support appropriate assessment of this unit. It contains an overview of the assessment requirements followed by identification of specific aspects of evidence that will need to be addressed in determining competence. The Evidence Guide is an integral part of the unit and should be read and interpreted in conjunction with the other components of competency. Assessment must reflect the endorsed Assessment Guidelines of the parent Training Package.
Overview of Assessment Requirements
A person who demonstrates competence in this unit must be able to provide evidence of efficient and effective management of franchises under own area of responsibility. Management role and responsibilities will be detailed in the franchising agreement and organisational documentation and include ensuring compliance with franchisee obligations and legislative requirements.
Specific Evidence Requirements
Required knowledge and understanding include:
legislation, codes of practice and national standards relating to 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
Required skills and attributes include:
ability to relate to people from a range of social, cultural and ethnic backgrounds, and physical and mental abilities
management skills
OHS skills
communication skills including negotiation skills
problem-solving skills
monitoring and review skills
attributes
- attention to detail
- thoroughness
Key competencies or generic skills relevant to this unit
The seven key competencies represent generic skills considered essential for effective work participation. Innovation skills represent a further area of generic competence. The bracketed numbering indicates the performance level required in this unit:
Level (1) represents the competence to undertake tasks effectively
Level (2) represents the competence to manage tasks
Level (3) represents the competence to use concepts for evaluating and reshaping tasks
The bulleted points provide examples of how the key competencies can be applied for this unit.
Communicating ideas and information (3)
communicating verbally including negotiating and consulting
communicating in writing to complete required documentation
Collecting, analysing and organising information (3)
analysis associated with review of operations
Planning and organising activities (3)
planning and organising management of franchises
Working in a team (2)
working with staff
working with franchisees
Using mathematical ideas and techniques (-)
not applicable
Solving problems (2)
applying problem-solving to issues arising in operation of franchises
Using technology (1)
using word processing software and specific software packages
Innovation skills (-)
not applicable
Products that could be used as evidence include:
documented actions taken to ensure compliance of franchises and address instances of non-compliance
documented resolutions of disputes between franchisees and franchisor
correspondence and records of communications and visits to support franchises
records made in monitoring franchises
identified improvements in franchise operations
Processes that could be used as evidence include:
how compliance has been monitored and issues of non-compliance addressed
how disputes with franchisees were resolved
how franchises were supported
how franchises were monitored
how franchise operations have been reviewed
Resource implications for assessment include:
access to workplace documentation
Validity and sufficiency of evidence requires:
that where assessment is part of a learning experience, evidence will need to be collected over a period of time, involving both formative and summative assessment
evidence of a managing a franchise operation over a period of time to support franchises in either an actual workplace situation or in a simulated workplace
Integrated competency assessment means:
that this unit can be assessed alone or as part of an integrated assessment activity involving other relevant units in franchising and strategic management and including:
- BSBFRA501A Establish a franchise operation
- BSBFRA503A Manage establishment of new sites or regions
- BSBFRA504A Manage relationship with franchisees
- BSBFRA505A Manage closure of a franchise
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| D0724 | BSBFRA502B | Manage a franchise operation | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| C666 | BSB51704 | Diploma of Business (Franchising) | Qualification |