Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
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. |
Application of the Unit
Application of the unit |
This unit applies to potential franchisees who will operate under formal franchising agreements and focuses on the planning aspects of the establishment of a franchise. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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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
ELEMENT |
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 |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the following is essential:
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Context of and specific resources for assessment |
Assessment must ensure:
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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:
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Guidance information for assessment |
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended. |
Range Statement
RANGE STATEMENT |
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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. |
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Requirements for establishing a specific franchise may include: |
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Negotiations may include: |
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Others may include: |
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Financing options may include: |
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Permits may include: |
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Contracts and agreements may include: |
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Third parties may include: |
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Unit Sector(s)
Unit sector |
Competency field
Competency field |
Management and Leadership - Franchising |
Co-requisite units
Co-requisite units |
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