Section 1: Franchise details
Question 1.1 to 1.7
Explanatory Note
If you are registered as a registered provider, you will have financial obligations to the Australian Government and older people. This includes managing government funding appropriately to ensure that you deliver safe and high-quality care.
Questions 1.1 to 1.5 inform us as to whether you are financially reliant on an external entity under a franchise arrangement.
Questions 1.6 to 1.7 inform us as to the extent of any operational support provided to you under a franchise agreement.
Franchise arrangements must be disclosed because they could:
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impact your financial viability (e.g., adding to your operating costs)
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impact your ability to deliver aged care services (e.g., the intake of older people) and act compatibly with the Statement of Rights
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result in financial decisions being made by others who are not the registered provider and are not subject to aged care regulatory requirements.
For these reasons, we need to understand:
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the extent of that financial reliance (given as a percentage of your total finances, including operating costs)
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how the relationship between you and the external entity operates.
Evidence
General details about your franchise arrangement include:
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a copy of the franchise agreement
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a summary of the arrangements and references to specific clauses that relate to the delivery of aged care services
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duration of the franchise arrangement (including original start and end date, and any variations).
Details of the financial arrangements between you and an external entity can include:
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information about the frequency of payments or repayments
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the total amount of payments or repayments
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where the cost of services or goods are being reimbursed, the nature of those services or goods
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information about any loans (including from related parties)
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any terms and conditions of the financial arrangements which may impact your ability to deliver aged care services.
Details of the operational support arrangements between you and an external entity can include:
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the nature of the support provided (e.g., the development of operational manuals and procedures, and how frequently support is provided)
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operating systems (ICT) used for the delivery of aged care services
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shared management structure, governing body, financial management resources.