Unit of competency details

BSBFRA401B - Manage compliance with franchisee obligations and legislative requirements (Release 1)


Usage recommendation:
Is superseded by and equivalent to BSBFRA401 - Manage compliance with franchisee obligations and legislative requirementsUpdated to meet Standards for Training Packages 24/Mar/2015

ReleaseRelease date
1 1 (this release) 10/Mar/2009

Training packages that include this unit

Qualifications that include this unit

CodeSort Table listing Qualifications that include this unit by the Code columnTitleSort Table listing Qualifications that include this unit by the Title columnUsage RecommendationRelease
SIT50312 - Diploma of HospitalityDiploma of HospitalitySuperseded1-3 
SIT60313 - Advanced Diploma of HospitalityAdvanced Diploma of HospitalitySuperseded
SIB50210 - Diploma of Salon ManagementDiploma of Salon ManagementSuperseded1-2 
BSB40407 - Certificate IV in Small Business ManagementCertificate IV in Small Business ManagementSuperseded1-4 
SIT50412 - Diploma of Holiday Parks and ResortsDiploma of Holiday Parks and ResortsSuperseded1-3 
SIT60307 - Advanced Diploma of HospitalityAdvanced Diploma of HospitalitySuperseded
SIT50307 - Diploma of HospitalityDiploma of HospitalitySuperseded
SIT50112 - Diploma of Travel and TourismDiploma of Travel and TourismSuperseded1-3 
SIR40207 - Certificate IV in Retail ManagementCertificate IV in Retail ManagementSuperseded
SIT50409 - Diploma of Holiday Parks and ResortsDiploma of Holiday Parks and ResortsSuperseded
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SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  25/Jul/2008 
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Modification History

Not applicable.

Unit Descriptor

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to comply with obligations set out in the franchising agreement and with relevant legislative requirements specific to the type of franchise.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Application of the Unit

Application of the unit 

This unit applies to franchisees who require a broad knowledge of franchisee obligations and legislative requirements and who use this knowledge to develop compliance strategies.

Franchisors will have their needs met in this area by BSBFRA501B Establish a franchise operation.

Licensing/Regulatory Information

Not applicable.


Prerequisite units 

Employability Skills Information

Employability skills 

This unit contains employability skills.

Elements and Performance Criteria Pre-Content

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

Elements and Performance Criteria



1. Determine franchisee obligations and legislative requirements

1.1. Identify obligations under franchising agreement 

1.2. Identify relevant legislative requirements 

1.3. Access codes of practice and material that interprets and explains obligations and legislative requirements

1.4. Clarify obligations and legislative requirements with franchisor and relevant government  and licensing agencies

2. Develop strategies for compliance with franchisee obligations and legislative requirements

2.1. Analyse available information on obligations and legislative requirements to develop strategies  for compliance

2.2. Check strategies with franchisor to determine suitability to operate franchise within obligations and legislative requirements

2.3. Use strategies to develop regular, cyclical compliance checks 

2.4. Complete training  to facilitate compliance requirements

3. Undertake scheduled compliance checks

3.1. Communicate compliance requirements to staff

3.2. Delegate compliance checks to relevant staff and provide training and support for staff to carry out these checks

3.3. Record timing and outcomes of compliance checks according to organisational requirements

3.4. Identify instances of non-compliance from compliance checks

4. Act on identified instances of non compliance with franchisee obligations and legislative requirements

4.1. Determine courses of action to address instances of non-compliance

4.2. Seek assistance of franchisor or other relevant parties to address non-compliance

4.3. Take action to address non-compliance

4.4. Make checks to ensure non-compliance has been addressed

4.5. Monitor compliance in a specific area to ensure continuing compliance

4.6. Analyse reasons for non-compliance to guide future compliance

Required Skills and Knowledge


This section describes the skills and knowledge required for this unit.

Required skills 

  • culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities
  • communication and negotiation skills to establish franchisee obligations
  • problem-solving skills to address non-compliance
  • research skills to access necessary information.

Required knowledge 

  • occupational health and safety (OHS) requirements:
  • specific to nature and type of franchise
  • generic to all workplaces
  • other relevant legislation, codes of practice and national standards, for example:
  • legislation covering fire safety, employment of staff and anti-discrimination, dangerous goods, liquor licensing, food safety
  • Franchising Code of Conduct
  • franchise specific obligations:
  • as per franchise agreement
  • as per updates and amendments to agreement over time
  • auditing requirements
  • penalties for non-compliance and context for franchisee obligations and legislative requirements.

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:

  • schedule of checks being undertaken associated with a broad statement of strategies to ensure compliance
  • compliance check schedule and examples of checks made  
  • documented actions to address instances of non-compliance
  • demonstrated support to staff to assist with compliance
  • 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 action taken to address non-compliance
  • oral or written questioning to assess knowledge of franchisee arrangements
  • evaluation of strategies developed for compliance
  • review of documentation recording timing and outcomes of compliance checks.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

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.

Obligations under franchising agreement  may include:

  • area of operations or limits to region or territory
  • fees and pricing structures
  • fees paid to franchisor
  • financial controls
  • franchise corporate image requirements and branding
  • limits on trading of other products and services that are outside franchise operations
  • merchandising requirements
  • quality assurance requirements
  • reporting of income, sales or 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

Government  may include:

  • commonwealth
  • local government
  • state/territory

Strategies  may be:

  • broad statements of requirements for compliance
  • used to develop specific work procedures and compliance checks

Compliance checks  may be:

  • continuous, daily, weekly, monthly as required to ensure compliance
  • logged in specific logbook or checked against checklists and filed as required
  • undertaken by franchisee or staff delegated with specific tasks

Training  may include:

  • a cyclical schedule (such as yearly refresher courses and product knowledge workshops)
  • legislative requirements such as first aid, OHS, food handling
  • specifications in the initial franchise agreement

Unit Sector(s)

Unit sector 

Competency field

Competency field 

Management and Leadership - Franchising

Co-requisite units

Co-requisite units