Unit of competency details

BSBFRA403B - Manage relationship with franchisor (Release 1)


Usage recommendation:
Is superseded by and equivalent to BSBFRA403 - Manage relationship with franchisorUpdated to meet Standards for Training Packages 24/Mar/2015

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

Training packages that include this unit

CodeSort Table listing Training packages that include this unit by the Code columnTitleSort Table listing Training packages that include this unit by the Title columnRelease
FNS10 - Financial Services Training PackageFinancial Services Training Package 1.0-5.1 
SIT12 - Tourism, Travel and Hospitality Training PackageTourism, Travel and Hospitality Training Package 1.0-2.0 
AUR12 - Automotive Industry Retail, Service and Repair Training PackageAutomotive Industry Retail, Service and Repair Training Package 1.0-2.1 
SIS10 - Sport, Fitness and Recreation Training PackageSport, Fitness and Recreation Training Package 1.2-3.1 
SIH11 - Hairdressing Training PackageHairdressing Training Package 1.0-2.0 
AUR05 - Automotive Industry Retail, Service and Repair Training PackageAutomotive Industry Retail, Service and Repair Training Package 3.0-4.0 
BSB07 - Business Services Training PackageBusiness Services Training Package 5.0-9.0 
SIB10 - Beauty Training PackageBeauty Training Package 1.1-1.2 
SIT07 - Tourism, Hospitality and Events Training PackageTourism, Hospitality and Events Training Package 2.3-3.0 
SIR07 - Retail Services Training PackageRetail Services Training Package 1.3 

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 
AUR50105 - Diploma of Automotive ManagementDiploma of Automotive ManagementSuperseded1-2 
AUR40105 - Certificate IV in Automotive ManagementCertificate IV in Automotive ManagementSuperseded1-2 
SIT60313 - Advanced Diploma of HospitalityAdvanced Diploma of HospitalitySuperseded
SIB50210 - Diploma of Salon ManagementDiploma of Salon ManagementSuperseded1-2 
SIT50412 - Diploma of Holiday Parks and ResortsDiploma of Holiday Parks and ResortsSuperseded1-3 
FNS40210 - Certificate IV in BookkeepingCertificate IV in BookkeepingSuperseded
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 
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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 manage the business relationship with the franchisor and oneself as the franchisee.

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 need to develop good working relationships with their franchisor within the Franchising Code of Conduct.

BSBFRA504B Manage relationships with franchisees, is the relevant unit for franchisors.

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. Establish relationship with franchisor

1.1. Identify the franchisor's representative /s or liaison person /

1.2. Identify communication channels  with the franchisor's representative/s or liaison person/s

1.3. Establish schedule of contact  with the franchisor's representative/s or liaison person/

1.4. Hold initial meeting with the franchisor's representative/s or liaison person/s to initiate ongoing relationship

1.5. Ensure participation in the franchisee advisory council meetings and relevant activities

2. Determine services available from franchisor

2.1. Consult with the franchisor's representative/s or liaison person/s to determine the range of services available through the franchisor 

2.2. Establish schedule for accessing services of the franchisor

2.3. Access services available through the franchisor according to schedule and as needs arise in the course of business operations

2.4. Maintain currency of information relating to services available through the franchisor

3. Implement strategies for meeting franchisor financial obligations

3.1. Identify franchisee financial obligations  to the franchisor

3.2. Develop and implement strategies and procedures to meet franchisee financial obligations

3.3. Undertaken planning to facilitate ongoing management of franchise 

4. Resolve disputes with franchisor

4.1. Identify disputes with the franchisor and enter into negotiations with the franchisor's representative/s or liaison person/s in line with complaints handling procedure as described in the Franchising Code of Conduct

4.2. Seek assistance of third parties or mediators to facilitate resolution of disputes arising with the franchisor and in line with the complaints handling procedure

4.3. Resolve disputes and document courses of agreed action

4.4. Implement agreed courses of action to resolve disputes

4.5. Use lessons learned from disputes to guide future business operations and to facilitate positive relationships with the franchisor

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 resolve disputes
  • problem-solving skills to address disputes arising in the course of business operations.

Required knowledge 

  • occupational health and safety (OHS) requirements:
  • specific to nature and type of franchise
  • generic to all workplaces
  • specific to own safety such as manual handling
  • legislation, codes of practice and national standards, for example:
  • Franchising Code of Conduct
  • legislation covering fire safety, OHS, employment of staff, company law, anti-discrimination and fair trading
  • required permits (under commonwealth, state/territory and local government regulations and legislation)
  • franchise specific obligations as per franchise agreement, specifically financial obligations.

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:

  • implementing processes to manage the relationship between franchisor and self
  • identifying and resolving disputes
  • financial planning to meet franchisor requirements
  • 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 franchisor
  • access to an actual workplace or simulated environment
  • access to 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
  • evaluation of strategies and procedures implemented to meet franchisee financial obligations
  • analysis of responses to case studies and scenarios
  • observation of presentations
  • oral or written questioning to assess knowledge of franchising arrangements
  • review of documented courses of agreed action taken to resolve disputes.

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.

Franchisor's representative /s or liaison person / may include:

  • franchisor's appointed representative
  • specialist personnel within franchisor organisation including financial advisers, training personnel and marketing advisers

Communication channels  may include:

  • email address
  • meeting schedules
  • mobile and office based telephone numbers
  • other emergency contact channels
  • pager number
  • workshops for franchisees

Schedule of contact  may include:

  • occasional visits
  • regular meetings
  • training schedules and franchisee network meetings
  • visits by representative/s

Services available through the franchisor  may include:

  • equipment repair and replacement
  • financial advise
  • IT support
  • market intelligence
  • marketing and promotional activities
  • product updates
  • purchasing of stock
  • training programs

Franchisee financial obligations  may include:

  • payment schedules
  • fixed price
  • percentage of turnover
  • percentage of income

Ongoing management of franchise  may include:

  • planning for life of agreement
  • planning for extinction of agreement

Unit Sector(s)

Unit sector 

Competency field

Competency field 

Management and Leadership - Franchising

Co-requisite units

Co-requisite units