Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: New economic activity is essential to create jobs that can absorb the surplus~ abour being created by, amongst other things, the increase in population rate, particular1y in developing countries like South Africa, and rationalisation and increased productivity characterising larger organisations nowadays. Entrepreneurship has been identified as one of the key sources and driving forces behind job creation and long-term economic growth, yet South Africa performs well below average in terms of entrepreneurial activity, particularly when compared to other developing countries. The weaknesses in the training and education system, lack of financial support, lack of research and development transfer and poor access to physical infrastructure were consistently identified in the various Global Entrepreneurship Monitor studies as accounting for the low entrepreneurial activity in South Africa. v-- The franchising business model has be/ldescribed in terms of Porter's value-chain analysis and shows that the franchisor prescribes to the franchisee a business model by providing procedures, guidelines, sharing, training and support for the execution of the primary and secondary activities within the franchisee's value chain. This is achieved through the tangible interrelationships that exist between franchisor and franchisee, which are characterised by the sharing and support of activities that are related within the two value chains and the intangible interrelationships involving the transfer of management know-how through training and mentoring. Considering the nature and the advantages of the franchise business model as described in terms of Porter's value-chain analysis, franchising can go a long way towards overcoming the lack of training and education and access to finance many entrepreneurs in South Africa are faced with. There is therefore evidence to suggest that franchising as a business model can reduce many of the risks associated with starting up a new business and contribute towards the improvement of the entrepreneurial status of South Africa. One of the main rationales behind purchasing a particular franchise is the confidence that the franchise will contribute to making the individual's business success more predictable. For this to become a reality requires that the franchisor provides an individual with a tried and test concept linked to a respectable and well-known brand within a structure that provides extensive initial and continuous support. However, although there are clear guidelines for the structure and conduct within the franchise business model, there are no all-encompassing rules regarding the extent to which all the aspects of a franchise business model have to be present for a particular franchise system to be considered good or bad. One franchise system may allow franchisees more leeway in some aspects of the business and have less formalised interrelationships within its value chain compared to another franchise system yet they may be equally successful systems depending on the extent to which their structure and the personal profile of the prospective franchisee complement each other. Therefore there are different management styles applied within different franchise systems and whether a particular franchise system will be successful for a particular franchisee depends upon the fit between the individual's personal profile, which encompasses the individual's skills, personality, entrepreneurial profile, risk profile, control profile, independence profile, work habits, ambitions, dreams, strengths and weaknesses and the franchise culture, functionality, structure, dynamic inter-relationships and regulation that prevails in the franchise network being considered. These factors, combined with others such as the current franchisor recruitment practices; abuse of the franchise concept and the balance of power considerations between franchisor and franchisee, emphasise the necessity for a prospective franchisee to take responsibility by performing his/her own thorough evaluation. The aim of this study was therefore the development of an analytical framework, which can be used by a prospective franchisee as a guideline for evaluating and deciding whether he/she is suited for franchising, whether a particular franchise opportunity is a sound and legitimate option and whether there is a fit between the personal profile of the individual and the profile of a particular franchise investment option being considered. By following the proposed analytical framework a prospective franchisee is able to develop a personal profile according to recommended guidelines and evaluate each potential franchise being considered / AFRIKAANSE OPSOMMING: Nuwe ekonomiese aktiwiteit is noodsaaklik om werk te skep wat die ooraanbod van arbeid kan absorbeer wat onder andere veroorsaak word deur die bevolkingsaanwas, veral in ontwikkelende lande soos Suid-Afrika, en rasionalisering en groter produktiwiteit wat deesdae groter organisasies kenmerk. Entrepreneurskap is ge'identifiseer as een van die sleutelbronne en dryfvere agter werkskepping en langtermyn ekonomiese groei. Tog presteer Suid-Afrika ver onder die gemiddelde in terme van entrepreneurskapsaktiwiteit, veral as dit vergelyk word met ander ontwikkelende lande. Die tekortkominge in die onderwys- en opleidingstelsel, gebrek aan finansiele ondersteuning, gebrek aan oordrag van navorsing- en ontwikkelingskundigheid en swak toegang tot fisiese infrastruktuur is konsekwent deur die Global Entrepreneurship Monitor ge'identifiseer as redes vir die lae vlak van entrepreneursaktiwiteit in Suid-Afrika. Die konsessie-sakemodel is in terme van Porter se waardekettinganalise beskryf en toon dat die konsessiegewer aan die konsessiehouer 'n sake model voorskryf deur prosedures, riglyne, deelname, opleiding en ondersteuning te voorsien vir die uitvoering van die primere en sekondere aktiwiteite binne die konsessiehouer se waardeketting. Dit word bereik deur die tasbare interverhoudings wat tussen die konsessiegewer en konsessiehouer bestaan, wat gekenmerk word deur die deelname aan en ondersteuning van aktiwiteite wat verwant is binne die twee waardekettings en die ontasbare interverhoudings wat betref die oordrag van bestuurskennis deur opleiding en mentorskap. As die aard en die voordele van die konsessie-sakemodel oorweeg word, soos beskryf in terme van Porter se waardeketting, kan die konsessiebedryf baie doen om die gebrek aan onderwys en opleiding en toegang tot finansiering wat baie entrepreneurs in Suid-Afrika ondervind, teen te werk. Daar is dus aanduiding dat konsessies as sakemodel baie van die risiko's kan verlaag wat verband hou met die totstandbring van 'n nuwe onderneming en kan bydra tot die verbetering van die entrepreneurstatus van Suid-Afrika. Een van die hoofbeweegredes agter die aankoop van 'n spesifieke konsessie is die vertroue dat die konsessie daartoe sal bydra om die individu se besigheid meer voorspelbaar te maak. Ten einde dit moontlik te maak, moet die konsessiegewer 'n individu voorsien van 'n beproefde konsep gekoppel aan 'n gerespekteerde en bekende handelsmerk binne 'n struktuur wat omvattende aanvanklike en deurlopende ondersteuning bied. Alhoewel daar duidelike riglyne is vir die struktuur en bedryf binne die konsessie-sakemodel, is daar geen allesomvattende re~ls betreffende die omvang waartoe al die aspekte van 'n konsessie-sakemodel teenwoordig moet wees ten einde te bepaal of 'n spesifieke konsessiestelsel goed of sleg is nie. Een konsessiestelsel mag konsessiehouers meer vryheid bied in terme van sekere aspekte van die besigheid en minder formele interverhoudings he binne sy waardeketting vergeleke met 'n ander konsessiestelsel, maar hulle mag ewe suksesvolle stelsels wees afhangend van die mate waarin hulle struktuur en die persoonlike profiel van die voomemende konsessiehouer mekaar komplementeer. Daar word dus verskillende bestuurstyle toegepas binne verskillende konsessiestelsels en of 'n spesifieke konsessiestelsel suksesvol sal wees vir 'n spesifieke konsessiehouer hang grootliks af van die passing tussen die individu se persoonlike profiel, wat insluit die individu se vaardighede, persoonlikheid, entrepreneursprofiel, risiko-profiel, kontrole-profiel, onafhanklikheidsprofiel, werkstyl, ambisies, drome, sterkpunte en swakpunte en die konsessie se kultuur, funksionaliteit, struktuur, dinamiese interverhoudings en regulering wat bestaan in die konsessienetwerk wat oorweeg word. Hierdie faktore, tesame met ander soos die huidige konsessiegewer se aanstellingspraktyke, misbruik van die konsessiekonsep en die magsbalans-oorwegings tussen die konsessiegewer en konsessiehouer, beklemtoon die noodsaaklikheid vir 'n voornemende konsessiehouer om verantwoordelikheid te neem deur sylhaar eie deeglike evaluering te doen. Die doel van hierdie studie is daarom die ontwikkeling van 'n analitiese raamwerk wat deur 'n voornemende konsessiehouer gebruik kan word as 'n riglyn vir die evaluering en besluitneming ten opsigte van sy/haar eie gepastheid vir die konsessiebedryf, of 'n spesifieke konsessiegeleentheid 'n grondige en wettige opsie is en of daar 'n passing is tussen die persoonlike profiel van die individu en die profiel van 'n spesifieke konsessiebelegging wat oorweeg word. Deur die voorgestelde analitiese raamwerk te volg, sal die voornemende konsessiehouer in staat wees om 'n persoonlike profiel te ontwikkel volgens aanbevole riglyn en elke potensiele konsessie wat oorweeg word, te evalueer.

This study explores the question of whether repurchasing of service establishments is an inherent characteristic of service franchising. The answer to this question holds substantial consequences for the economy and for public policy toward franchising.

What explains variation in fiscal capacity over time and across sub-national units within the same country? In this dissertation, I argue that incumbent political elites, anticipating the redistributive consequences of democratization, can hollow out fiscal capacity. Places where such a phenomenon is likely to occur are those characterized by high levels of social-status inequality arising from historical inter-group segregation. I examine fiscal capacity in colonial Indian provinces and demonstrate that an exogenous episode of limited franchise expansion to lower-status groups was followed by a period of declining fiscal institutions. I use a novel historical dataset spanning 43 districts in the provinces of Madras and Bombay between 1914--1925 and qualitative evidence from legislative proceedings in the two provinces, and find that tax institutions declined in the districts with higher levels of status inequality, as opposed to inequality in wealth. This decline was more pronounced in the reform years, as upper-status groups anticipating the ascendance of lower-status groups into politics hollowed out tax institutions. Next, I examine a case of political mobilization in contemporary India and demonstrate that an announcement by the Government of India in 1990 to implement affirmative action for lower-status groups was followed by a rise in the right-wing vote share for the Bharatiya Janata Party after 1990. Using survey data and electoral data, I finds that both wealthy and poor upper-status Indians voted for the right-wing after 1990 in places where there was greater status inequality in 1931 -- a pattern that did not exist in previous elections. These findings provide evidence for the claim that when upper-status groups face threats to their social standing, cross-class solidarities emerge in support of anti-redistribution parties.

Submitted by Elba Lopes (elba.lopes@fecap.br) on 2018-05-23T19:52:24Z No. of bitstreams: 2 WILLIAM RONALDO DOS SANTOS LIMA.pdf: 459342 bytes, checksum: 398e92e4cde7d41fa70cd0da43166118 (MD5) license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) / Made available in DSpace on 2018-05-23T19:52:24Z (GMT). No. of bitstreams: 2 WILLIAM RONALDO DOS SANTOS LIMA.pdf: 459342 bytes, checksum: 398e92e4cde7d41fa70cd0da43166118 (MD5) license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) Previous issue date: 2017-03-10 / Studies that have been done about franchising have been receiving singular academic relevance. In addition to this, there has been extensive literature that points to the predictive power of the individual with regards to human behaviour. The present article diagnoses the relationship between the values of franchisees and the financial performance of the franchise that they manage. A survey, which was done by the Schwartz inventory (1992), was undertaken in order to collect the axiological priorities from a sample of franchisees, 33 to be exact, from a franchising company in Brazil. Financial performance was measured using the median percentage growth in annual franchise revenue. After correlation and regression analyses, the results revealed that the Traditional and Security Motivational Types of behaviours had a significant positive relation with the performance of the franchise. Such classes of human values as these tend to preserve social arrangements. This result indicates that the franchises whose entrepreneurs have a more conservative profile present a better financial performance. A positive and statistically significant relationship was also discovered between collectivist values and financial performance. In this respect, the results corroborate the aforementioned literature, which indicates that the franchisor / franchisee relationship has a positive impact on franchise performance. Conservatism and collectivism, therefore, should be privileged values if the purpose of the franchise is financial performance. In this way, the article contributes to the theory by linking two little conceptual frameworks, individual values and management of franchises, in the literature. The article also collaborates with business practice by pointing out concrete empirical elements that increase performance. / Estudos sobre franquias t??m recebido singular relev??ncia acad??mica. Concomitantemente, h?? extensa literatura que aponta o poder preditivo dos valores individuais no comportamento humano. O presente artigo diagnostica a rela????o entre os valores de franqueados e o desempenho financeiro de suas franquias. Utilizou-se um survey com o invent??rio de valores de Schwartz (1992) para coletar as prioridades axiol??gicas de uma amostra de franqueados (n=33) de uma empresa franqueadora no Brasil. O desempenho financeiro foi medido atrav??s da mediana do percentual de crescimento da receita anual das franquias. Ap??s an??lises correlacionais e de regress??o, os resultados revelaram que os Tipos Motivacionais Tradi????o e Seguran??a t??m rela????o positiva significante com o desempenho das franquias. Tais classes de valores humanos tendem ?? preserva????o dos arranjos sociais. Esse resultado aponta que franquias cujos empreendedores t??m perfil mais conservador apresentam melhor desempenho financeiro. Encontrou-se rela????o positiva e estatisticamente significante tamb??m entre valores coletivistas e desempenho financeiro. Nesse aspecto, os resultados corroboram a literatura recente, segundo a qual o relacionamento franqueador/franqueado tem impacto positivo no desempenho da franquia. O conservadorismo e o coletivismo, portanto, devem ser valores privilegiados, caso o objetivo da franquia seja o desempenho financeiro. Deste modo, o artigo contribui para a teoria, ao relacionar dois arcabou??os conceituais pouco associados na literatura ??? valores individuais e gest??o de franquias ??? e colabora tamb??m para a pr??tica empresarial, ao apontar elementos emp??ricos concretos que aumentam o desempenho.

This dissertation examines whether the regulation of the franchise sector is effective in achieving two of the stated goals of the Franchising Code of Conduct. These two goals are redressing the imbalance of power in the relationship and increasing levels of certainty for participants in the sector. Based on the ‘new learning’ in regulation, this dissertation takes an expansive approach to the concept of regulation. It considers how, in a ‘multi-layered system of governance’, the layers of regulation of the franchising sector contribute to these goals. The results of the analysis suggest that private, self-regulation through the layers of market and contract sets up a relationship where there is an imbalance of power in favour of a franchisor and uncertainty for a franchisee. The market interaction between the parties establishes these conditions, which are reinforced by the contract, in particular by the interaction of the standard form and relational qualities of the contract. A public layer of governance, direct intervention in the form of the Franchising Code of Conduct, relies largely on selfregulatory tools such as disclosure and is also ineffective in addressing the imbalance of power in the relationship and in increasing levels of certainty for franchisees. Because neither self-regulatory mechanisms nor legislative intervention achieves the stated goals of redressing imbalance of power and uncertainty in the franchise relationship, the analysis concludes that a reframing of regulation is necessary. The recommended revised regulatory program features collaborative, participative, democratic process to gather and assess good measurements that inform the identification of problems and the selection of tools appropriate to address those problems.

This paper examines franchising regulation in Australia as a case study for the analysis of regulation based on established regulatory theory. A literature review is conducted to establish and critique the theory of regulation based on the four main areas of established theory; regulatory purpose, regulatory strategies, rulemaking and enforcement. Case study data is drawn from primary source material and academic commentary on franchising regulation and presented according to the eras of franchising regulation in Australia, moving from the first proposals for legislation in the 1970s to the prescribed mandatory Franchising Code of Conduct model adopted in 1998 and refinements made to that scheme up to 2006. An analysis is then conducted on each major aspect of Australian franchising regulation using the established theoretical principles and analytical constructs available in the literature. The study concludes that the Franchising Code of Conduct regime, as a culmination of the experience gained and study undertaken in the preceding eras, is characterised by the availability of a broad range of enforcement options from harsh deterrence-oriented measures to more gentle and cooperative compliance-oriented options constituting an effective regulatory pyramid. The effectiveness of the regime is further bolstered by the presence of a credible regulatory strategy pyramid which emphasises the real possibility of escalated intervention, coupled with skilful deployment by the Australian Competition and Consumer Commission as enforcement agency. The principal weakness of the scheme is identified as unnecessarily ambiguous drafting in some areas, which compromises the quality of the otherwise highly transparent ruleset. It is suggested that the choice of regulatory strategy, often a focus of superficial examinations of regulation, is largely irrelevant to the nature of the regulation, with other features such as enforcement strategy, legitimacy, and availability of credible sanctions proving much more important. A proposal for an analytical framework based on the established theory is developed based on the experience of applying that theory to the case study. While this outlined framework assists in broadening focus across the entire regulatory regime to encourage assessment of the component parts, a lack of cohesion and linkage amongst the components highlights a shortcoming in the development of regulatory theory and an opportunity for further research.

This paper examines franchising regulation in Australia as a case study for the analysis of regulation based on established regulatory theory. A literature review is conducted to establish and critique the theory of regulation based on the four main areas of established theory; regulatory purpose, regulatory strategies, rulemaking and enforcement. Case study data is drawn from primary source material and academic commentary on franchising regulation and presented according to the eras of franchising regulation in Australia, moving from the first proposals for legislation in the 1970s to the prescribed mandatory Franchising Code of Conduct model adopted in 1998 and refinements made to that scheme up to 2006. An analysis is then conducted on each major aspect of Australian franchising regulation using the established theoretical principles and analytical constructs available in the literature. The study concludes that the Franchising Code of Conduct regime, as a culmination of the experience gained and study undertaken in the preceding eras, is characterised by the availability of a broad range of enforcement options from harsh deterrence-oriented measures to more gentle and cooperative compliance-oriented options constituting an effective regulatory pyramid. The effectiveness of the regime is further bolstered by the presence of a credible regulatory strategy pyramid which emphasises the real possibility of escalated intervention, coupled with skilful deployment by the Australian Competition and Consumer Commission as enforcement agency. The principal weakness of the scheme is identified as unnecessarily ambiguous drafting in some areas, which compromises the quality of the otherwise highly transparent ruleset. It is suggested that the choice of regulatory strategy, often a focus of superficial examinations of regulation, is largely irrelevant to the nature of the regulation, with other features such as enforcement strategy, legitimacy, and availability of credible sanctions proving much more important. A proposal for an analytical framework based on the established theory is developed based on the experience of applying that theory to the case study. While this outlined framework assists in broadening focus across the entire regulatory regime to encourage assessment of the component parts, a lack of cohesion and linkage amongst the components highlights a shortcoming in the development of regulatory theory and an opportunity for further research.

This paper examines franchising regulation in Australia as a case study for the analysis of regulation based on established regulatory theory. A literature review is conducted to establish and critique the theory of regulation based on the four main areas of established theory; regulatory purpose, regulatory strategies, rulemaking and enforcement. Case study data is drawn from primary source material and academic commentary on franchising regulation and presented according to the eras of franchising regulation in Australia, moving from the first proposals for legislation in the 1970s to the prescribed mandatory Franchising Code of Conduct model adopted in 1998 and refinements made to that scheme up to 2006. An analysis is then conducted on each major aspect of Australian franchising regulation using the established theoretical principles and analytical constructs available in the literature. The study concludes that the Franchising Code of Conduct regime, as a culmination of the experience gained and study undertaken in the preceding eras, is characterised by the availability of a broad range of enforcement options from harsh deterrence-oriented measures to more gentle and cooperative compliance-oriented options constituting an effective regulatory pyramid. The effectiveness of the regime is further bolstered by the presence of a credible regulatory strategy pyramid which emphasises the real possibility of escalated intervention, coupled with skilful deployment by the Australian Competition and Consumer Commission as enforcement agency. The principal weakness of the scheme is identified as unnecessarily ambiguous drafting in some areas, which compromises the quality of the otherwise highly transparent ruleset. It is suggested that the choice of regulatory strategy, often a focus of superficial examinations of regulation, is largely irrelevant to the nature of the regulation, with other features such as enforcement strategy, legitimacy, and availability of credible sanctions proving much more important. A proposal for an analytical framework based on the established theory is developed based on the experience of applying that theory to the case study. While this outlined framework assists in broadening focus across the entire regulatory regime to encourage assessment of the component parts, a lack of cohesion and linkage amongst the components highlights a shortcoming in the development of regulatory theory and an opportunity for further research.

This dissertation examines whether the regulation of the franchise sector is effective in achieving two of the stated goals of the Franchising Code of Conduct. These two goals are redressing the imbalance of power in the relationship and increasing levels of certainty for participants in the sector. Based on the ‘new learning’ in regulation, this dissertation takes an expansive approach to the concept of regulation. It considers how, in a ‘multi-layered system of governance’, the layers of regulation of the franchising sector contribute to these goals. The results of the analysis suggest that private, self-regulation through the layers of market and contract sets up a relationship where there is an imbalance of power in favour of a franchisor and uncertainty for a franchisee. The market interaction between the parties establishes these conditions, which are reinforced by the contract, in particular by the interaction of the standard form and relational qualities of the contract. A public layer of governance, direct intervention in the form of the Franchising Code of Conduct, relies largely on selfregulatory tools such as disclosure and is also ineffective in addressing the imbalance of power in the relationship and in increasing levels of certainty for franchisees. Because neither self-regulatory mechanisms nor legislative intervention achieves the stated goals of redressing imbalance of power and uncertainty in the franchise relationship, the analysis concludes that a reframing of regulation is necessary. The recommended revised regulatory program features collaborative, participative, democratic process to gather and assess good measurements that inform the identification of problems and the selection of tools appropriate to address those problems.

This paper examines franchising regulation in Australia as a case study for the analysis of regulation based on established regulatory theory. A literature review is conducted to establish and critique the theory of regulation based on the four main areas of established theory; regulatory purpose, regulatory strategies, rulemaking and enforcement. Case study data is drawn from primary source material and academic commentary on franchising regulation and presented according to the eras of franchising regulation in Australia, moving from the first proposals for legislation in the 1970s to the prescribed mandatory Franchising Code of Conduct model adopted in 1998 and refinements made to that scheme up to 2006. An analysis is then conducted on each major aspect of Australian franchising regulation using the established theoretical principles and analytical constructs available in the literature. The study concludes that the Franchising Code of Conduct regime, as a culmination of the experience gained and study undertaken in the preceding eras, is characterised by the availability of a broad range of enforcement options from harsh deterrence-oriented measures to more gentle and cooperative compliance-oriented options constituting an effective regulatory pyramid. The effectiveness of the regime is further bolstered by the presence of a credible regulatory strategy pyramid which emphasises the real possibility of escalated intervention, coupled with skilful deployment by the Australian Competition and Consumer Commission as enforcement agency. The principal weakness of the scheme is identified as unnecessarily ambiguous drafting in some areas, which compromises the quality of the otherwise highly transparent ruleset. It is suggested that the choice of regulatory strategy, often a focus of superficial examinations of regulation, is largely irrelevant to the nature of the regulation, with other features such as enforcement strategy, legitimacy, and availability of credible sanctions proving much more important. A proposal for an analytical framework based on the established theory is developed based on the experience of applying that theory to the case study. While this outlined framework assists in broadening focus across the entire regulatory regime to encourage assessment of the component parts, a lack of cohesion and linkage amongst the components highlights a shortcoming in the development of regulatory theory and an opportunity for further research.