Unit of competency Outline
Date retreived
22/07/2026 2:36 PM AWST
22/07/2026 2:36 PM 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.
Establish a franchise operation
Establish a franchise operation
Unit of competency
National Code
BSBFRA501B
BSBFRA501B
State Code
D0723
D0723
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
28/06/2010
Field of Education
080301 - Business Management
Original Release Date
28/06/2010
Nominal Hours
50
Description
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.
Notes
Elements and 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
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
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
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:
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.
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.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C7023 | BSBFRA501A | Establish a franchise operation | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUK19 | BSBFRA501 | Establish a franchise operation | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D167 | BSB50507 | Diploma of Franchising | Qualification |
| J151 | SIR50112 | Diploma of Retail Management | Qualification |