Unit of competency Outline
Date retreived
23/07/2026 12:22 AM AWST
23/07/2026 12:22 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 establishment of new sites or regions
Manage establishment of new sites or regions
Unit of competency
National Code
BSBFRA503B
BSBFRA503B
State Code
D0725
D0725
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 manage the establishment of new sites or regions within an existing franchise operation and select new operators for existing franchises.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 new franchise sites or regions
- 1.1. Access franchise organisation's strategic plan for expansion of franchise operation to determine opportunities for new sites or regions
- 1.2. Make analysis from closures of existing sites or regions and other industry data to identify opportunities for new sites or regions
- 1.3. Undertake market research to identify opportunities for new sites or regions
- 1.4. Obtain agreement on new sites and regions from senior management as relevant
- 1.5. Confirm and document opportunities for new sites or regions within franchisor's policies
2. Select new franchisees
- 2.1. Supply applicants for new sites or regions with requirements for establishing a franchise
- 2.2. Check each applicant's suitability and ability to meet franchisor's requirements in consultation with applicants and franchise operation's management
- 2.3. Evaluate each applicant's business planning documents for suitability
3. Assist potential franchisees with establishing new franchise
- 3.1. Assist potential franchisees with completion of business and marketing plans
- 3.2. Clarify issues raised in relation to operation of the franchise with potential franchisees
- 3.3. Assist potential franchisees with obtaining required permits, site selection and financing options
- 3.4. Communicate and clarify with potential franchisees, marketing or other cooperative funds, intellectual property rights and rights to client database
- 3.5. Determine physical and human resources required for commencement of franchise in conjunction with potential franchisee
4. Formalise agreement with new franchisee/s
- 4.1. Make checks to ensure franchisee/s meet all requirements for entering into franchise agreement
- 4.2. Complete agreement with new franchisee/s and obtain necessary signatures
- 4.3. Determine date for commencement of franchise/s
5. Assist franchisee/s in opening new franchise
- 5.1. Assist franchisee/s with obtaining required physical and human resources to commence operations
- 5.2. Assist franchisee/s with obtaining required products to commence operations
- 5.3. Determine and implement responsibilities of franchisor as per franchise agreement
- 5.4. Provide assistance to franchisee/s to determine and implement strategies and processes to meet franchisee obligations and legislative requirements as per franchise agreement and to manage the franchise
- 5.5. Monitor ability to commence franchise operations on due date in conjunction with franchisee/s
- 5.6. Determine training needs of franchisee/s and facilitate required training
- 5.7. Resolve problems arising in setting up franchise to commence business operations in conjunction with franchisee/s
- 5.8. Commence operations of new site or region within specified timeframes and within parameters set down by franchisor
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.
Strategic plan for expansion of franchise operation may include:
geographic spread of franchises
limits of regions/sites
number of franchises
other criteria for establishing new sites or regions
Industry data may include:
information and statistics from government departments and agencies
reports and data from peak bodies
Applicants for new sites or regions may include:
those opening a new site or region
those taking over an existing franchise
Requirements for establishing a franchise may include:
capital or financial backing
franchise specific requirements
physical aptitude or fitness
receipt of disclosure document as specified in the Franchising Code of Conduct
skill levels or appropriate experience
Products may include:
consumables
raw materials
stock
Applicant's business planning documents may include:
business plan
financial plan
marketing plan
other planning documents
Permits may include:
dangerous goods
fire safety and OHS
local government permits
other permits governed by commonwealth, state/territory legislation
specific business operations such as liquor licence
Physical and human resources may include:
franchise specific equipment
IT and communications equipment
premises
products (consumables, raw materials, stock)
shop fittings/office furniture
staff
vehicles
Requirements for entering into franchise agreement may include:
awareness and understanding of requirements as outlined in the Franchising Code of Conduct
competence
financial
health, fitness and aptitude
probity and police checks
Franchisee obligations may include:
fees and pricing structures
franchise corporate image requirements and branding
merchandising requirements
quality assurance requirements
recognition of identified territory to avoid encroachment of territory between franchisees
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
Training may be:
scheduled on a cyclical basis (such as yearly refresher courses and product knowledge workshops)
specified in initial franchise agreement
required by legislation such as first aid
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.
Strategic plan for expansion of franchise operation may include:
geographic spread of franchises
limits of regions/sites
number of franchises
other criteria for establishing new sites or regions
Industry data may include:
information and statistics from government departments and agencies
reports and data from peak bodies
Applicants for new sites or regions may include:
those opening a new site or region
those taking over an existing franchise
Requirements for establishing a franchise may include:
capital or financial backing
franchise specific requirements
physical aptitude or fitness
receipt of disclosure document as specified in the Franchising Code of Conduct
skill levels or appropriate experience
Products may include:
consumables
raw materials
stock
Applicant's business planning documents may include:
business plan
financial plan
marketing plan
other planning documents
Permits may include:
dangerous goods
fire safety and OHS
local government permits
other permits governed by commonwealth, state/territory legislation
specific business operations such as liquor licence
Physical and human resources may include:
franchise specific equipment
IT and communications equipment
premises
products (consumables, raw materials, stock)
shop fittings/office furniture
staff
vehicles
Requirements for entering into franchise agreement may include:
awareness and understanding of requirements as outlined in the Franchising Code of Conduct
competence
financial
health, fitness and aptitude
probity and police checks
Franchisee obligations may include:
fees and pricing structures
franchise corporate image requirements and branding
merchandising requirements
quality assurance requirements
recognition of identified territory to avoid encroachment of territory between franchisees
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
Training may be:
scheduled on a cyclical basis (such as yearly refresher courses and product knowledge workshops)
specified in initial franchise agreement
required by legislation such as first aid
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:
establishing a strategic plan for franchise expansion
providing advice and support to franchisees
completing an agreement with franchisees
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 market research to identify opportunities for new sites or regions
evaluation of applicant's business planning documents
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 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:
establishing a strategic plan for franchise expansion
providing advice and support to franchisees
completing an agreement with franchisees
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 market research to identify opportunities for new sites or regions
evaluation of applicant's business planning documents
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.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C7025 | BSBFRA503A | Manage establishment of new sites or regions | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUK83 | BSBFRA503 | Manage establishment of new sites or regions | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D167 | BSB50507 | Diploma of Franchising | Qualification |
| J151 | SIR50112 | Diploma of Retail Management | Qualification |