Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to manage the closure of a franchise or to transfer it to a new franchisee, or to take action to prevent a closure being executed. 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 franchisors with a well established, sound theoretical knowledge base in franchising who are proficient in using a range of specialised technical and managerial techniques to undertake the closure of a franchise or transfer to a new franchisee. |
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. Investigate and implement alternatives to closure |
1.1. Discuss, document and analyse reasons for closure with relevant stakeholders 1.2. Use lessons learned from previous franchise closures and potential franchise closures to arrive at alternative strategies 1.3. Research and negotiate alternative strategies to closure with franchisee and relevant third parties 1.4. Assess feasibility of transferring franchise to new franchisee 1.5. Implement, where feasible, alternative arrangements to closure including transfer |
2. Determine roles and responsibilities in closure or transfer of franchisee |
2.1. Determine roles and responsibilities of all parties in closure or transfer in line with the Franchising Code of Conduct 2.2. Negotiate process for effecting closure or transfer with relevant stakeholders and document in the form of a plan 2.3. Allocate responsibilities for effecting closure or transfer 2.4. Negotiate closing date or transfer date for franchise with relevant stakeholders |
3. Implement plan for closure or transfer |
3.1. Communicate closing date or transfer date for franchise to relevant stakeholders 3.2. Carry out disposal of assets according to plan or transfer them to new franchisee 3.3. Facilitate financial settlements with financial institutions or franchisor's financial officers or debt collectors 3.4. Implement arrangements for closure or transfer in consultation with customers 3.5. Dispose of intellectual property including client database according to agreement between franchisor and franchisee 3.6. Undertake checks to ensure that the process for closure or transfer has been completed according to plan |
4. Review implications for franchise operations |
4.1. Analyse implications for franchise operations from review of closure or transfer 4.2. Identify and recommended improvements to franchise operations and management of franchises |
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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Relevant stakeholders may include: |
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Alternative strategies may include: |
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Roles and responsibilities may include: |
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Disposal of assets 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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