Unit of competency Outline

Date retreived
22/07/2026 6:29 PM AWST

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Establish a franchise

Establish a franchise

Unit of competency
National Code
BSBFRA402B
State Code
D0720
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
10/03/2009
View on TGA
State Implementation and Classification
Approved Date
03/05/2011
Field of Education
080301 - Business Management
Original Release Date
03/05/2011
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to establish a franchise from the initial research phase through to finalising a franchising agreement with the franchisor and opening the franchise for business.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Identify opportunities for establishing a franchise
  • 1.1. Research and identify franchising opportunities
  • 1.2. Determine own interests and skills to assess suitability for identified opportunities
  • 1.3. Determine requirements for establishing a specific franchise
  • 1.4. Research and check viability and business record of franchisor in prospective franchise
  • 1.5. Enter into negotiations with a franchisor to establish a franchise
2. Complete business plan
  • 2.1. Access business plan proforma, as appropriate
  • 2.2. Consult franchisor and others in process of developing business planning documents
  • 2.3. Research and determine financing options
  • 2.4. Finalise financial planning for franchise
  • 2.5. Undertake market analysis for franchise opportunity and complete marketing plan
  • 2.6. Research and determine needs for premises in appropriate area
  • 2.7. Compile relevant information into business plan
3. Identify and address learning needs
  • 3.1. Determine required skills and knowledge to manage a franchise, and identify gaps for self and others
  • 3.2. Seek assistance to assess and address learning needs and document these in the form of a learning plan
  • 3.3. Determine training required by franchisor of a franchisee
  • 3.4. Undertake learning plan and required training programs
4. Finalise agreements
  • 4.1. Complete finance agreements
  • 4.2. Access legal advice as required
  • 4.3. Finalise and sign off franchising agreement
  • 4.4. Obtain required permits for franchise operation
  • 4.5. Finalise contracts and agreements with third parties
5. Prepare for opening of franchise
  • 5.1. Obtain physical and human resources required to manage franchise
  • 5.2. Undertake marketing activities associated with opening the franchise
  • 5.3. Open the franchise for business
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.
Requirements for establishing a specific franchise may include:
availability of finance
availability of franchise opportunity
franchisor specific requirements
own skills and knowledge
Negotiations may include:
fee structure for franchise operation
financing options
franchisee obligations
franchisor requirements and expectations
reasonable adjustments to workplace, equipment or processes to facilitate operation of the franchise
site selection for franchise
Others may include:
accountant
family members
franchisor staff
legal advisor
other franchisees already operating franchises
own network
personal research
Financing options may include:
arrangements with franchisor or third party interest
loan from family members
loan from financial institution
mortgage of existing property or sale of assets
Permits may include:
dangerous goods
fire safety and OHS
local government permits
other commonwealth, state/territory legislation
specific business operations such as liquor licence
Contracts and agreements may include:
lease or purchase of premises
motor vehicles
industry specific tools, plant and equipment
IT and office equipment
Third parties may include:
property owner of site separate to franchisor
silent partners or commercial backers
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:
determining own suitability for the franchise
completing a business plan
identifying and planing learning needs
knowledge of relevant legislation, codes of practice and national standards.
Context of and specific resources for assessment
Assessment must ensure:
access to an actual workplace or simulated environment
access to office equipment and resources
access to examples of real franchisee agreements and related documentation.
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 business plan
analysis of responses to case studies and scenarios
evaluation of documented learning plan
observation of presentations on financing options
oral or written questioning to assess knowledge of franchisee arrangements
observation of performance in role plays.
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
C7020 BSBFRA402A Establish a franchise Unit of competency
Replaced By
State Code National Code Title Type
AUJ63 BSBFRA402 Establish a franchise Unit of competency