Unit of competency Outline
Date retreived
22/07/2026 9:44 AM AWST
22/07/2026 9:44 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 closure of a franchise
Manage closure of a franchise
Unit of competency
National Code
BSBFRA505B
BSBFRA505B
State Code
D0727
D0727
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
09/07/2014
Field of Education
080301 - Business Management
Original Release Date
09/07/2014
Nominal Hours
70
Description
This unit describes the performance outcomes, skills and knowledge required to manage the closure of a franchise or to transfer it to a new franchisee, or to take action to prevent a closure being executed.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Investigate and implement alternatives to closure
- 1.1. Discuss, document and analyse reasons for closure with relevant stakeholders
- 1.2. Use lessons learned from previous franchise closures and potential franchise closures to arrive at alternative strategies
- 1.3. Research and negotiate alternative strategies to closure with franchisee and relevant third parties
- 1.4. Assess feasibility of transferring franchise to new franchisee
- 1.5. Implement, where feasible, alternative arrangements to closure including transfer
2. Determine roles and responsibilities in closure or transfer of franchisee
- 2.1. Determine roles and responsibilities of all parties in closure or transfer in line with the Franchising Code of Conduct
- 2.2. Negotiate process for effecting closure or transfer with relevant stakeholders and document in the form of a plan
- 2.3. Allocate responsibilities for effecting closure or transfer
- 2.4. Negotiate closing date or transfer date for franchise with relevant stakeholders
3. Implement plan for closure or transfer
- 3.1. Communicate closing date or transfer date for franchise to relevant stakeholders
- 3.2. Carry out disposal of assets according to plan or transfer them to new franchisee
- 3.3. Facilitate financial settlements with financial institutions or franchisor's financial officers or debt collectors
- 3.4. Implement arrangements for closure or transfer in consultation with customers
- 3.5. Dispose of intellectual property including client database according to agreement between franchisor and franchisee
- 3.6. Undertake checks to ensure that the process for closure or transfer has been completed according to plan
4. Review implications for franchise operations
- 4.1. Analyse implications for franchise operations from review of closure or transfer
- 4.2. Identify and recommended improvements to franchise operations and management of franchises
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
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
EVIDENCE GUIDE
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 on-the-job 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.
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 on-the-job 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.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C7027 | BSBFRA505A | Manage closure of a franchise | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUM07 | BSBFRA505 | Manage closure of a franchise | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D167 | BSB50507 | Diploma of Franchising | Qualification |
| AB754 | BSBSS00006 | Franchising Skill Set | Skill set |
| J151 | SIR50112 | Diploma of Retail Management | Qualification |