Thesis (MAcc)--University of Stellenbosch, 2010. / AFRIKAANSE OPSOMMING: Franchise besighede is ʼn alledaagse verskynsel in die Suid-Afrikaanse en Internasionale besigheidswêreld. Ingevolge afdeling 12(2)(c) van Regulasie 287 van die Petroleum Produkte Wet No. 120 van 1977 word ʼn groothandelaar van petroleum produkte verbied om ʼn kleinhandellisensie te besit anders as vir doeleindes van opleiding. Die gevolg hiervan is dat petroleum maatskappye gebruik maak van franchisehouers om hulle vulstasies en geriefswinkels namens hulle te bedryf aangesien die franchisehouers toegelaat word om kleinhandellisensies te besit vir besigheidsdoeleindes. Die konsep van ʼn franchise is daarop gebaseer dat ʼn franchisehouer die franchise van ʼn bestaande, en dikwels welvarende, besigheid bekom vanaf ʼn franchisegewer en dan die besigheid onder die vaandel van daardie franchise bedryf. Die franchisehouer betaal dikwels ʼn eenmalige enkelbedrag franchisefooi aan die franchisegewer en addisioneel daartoe ʼn deurlopende franchisefooi, gewoonlik op ʼn maandelikse basis. Die deurlopende franchisefooi word normaalweg bereken as ʼn persentasie van omset van die franchise besigheid, of dit word bereken volgens ʼn alternatiewe formule of metode soos uiteengesit in die betrokke franchise-ooreenkoms. Wanneer franchisehouers hul inkomstebelasting vir ʼn spesifieke jaar van aanslag bereken, word hulle gekonfronteer met die vraag oor hoe om die franchisefooie vir inkomstebelastingdoeleindes te hanteer. Die inkomstebelasting hantering van die eenmalige enkelbedrag franchisefooi blyk meer onduidelik te wees as dié van die deurlopende fooi. Die bewoording wat in die franchise-ooreenkoms gebruik word om hierdie eenmalige enkelbedrag te omskryf is dikwels vaag en verg verdere interpretasie wat uit die aard van die saak die korrekte inkomstebelasting hantering daarvan bemoeilik. Hierdie studie stel gevolglik ondersoek in na die inkomstebelastinghantering van franchisefooie betaalbaar deur die franchisehouers in die Suid-Afrikaanse petroleumbedryf ingevolge die Suid-Afrikaanse Inkomstebelastingwet No. 58 van 1962. / ENGLISH ABSTRACT: Franchise businesses are an everyday occurrence in the South African and International business world. A wholesaler of petroleum products is prohibited in terms of section 12(2)(c) of Regulation 287 of the Petroleum Products Act No. 120 of 1977 to own a retail license for purposes other than that of training. As a result, petroleum companies make use of franchises where the franchisee is allowed to own a retail license and is therefore able to operate a service station and convenience store on the companies’ behalf. The concept of a franchise is based on the principle that a franchisee obtains the franchise of an existing, often prosperous, business from a franchisor, and then operates the business under the banner of this franchise. The franchisee usually pays a once-off lump sum fee and in addition to this fee a continuous franchise fee, usually on a monthly basis. The continuous franchise fee is usually calculated as a percentage of the turnover of the franchise business, or it is calculated using an alternative formula or method as set out in the franchise agreement. Franchisees are confronted with the question on how to treat the payment of the franchise fees for income tax purposes when they calculate their income tax liability for a specific year of assessment. The income tax treatment of the once-off lump sum franchise fee seems to be less clear than that of the continuous franchise fee. The wording used in franchise agreements to define and describe the once-off fee is often vague and requires further interpretation. This encumbers the correct income tax treatment of the fee. This study therefore investigates the income tax treatment of franchise fees payable by franchisees in the South African petroleum industry in terms of the South African Income Tax Act No. 58 of 1962.

Redes de franquia constituem um tipo de arranjo híbrido de governança onde, normalmente, lojas próprias e franqueadas operam sob uma mesma marca e formato de negócios. Considerando que taxas de franquia (fixas e variáveis) estão entres as principais fontes de receita do franqueador senão a principal, este trabalho tem por objetivo identificar evidências quanto a fixação destas taxas por redes de franquia. A variação de tais taxas é comparada à capacidade de monitoramento das redes, considerando que custos de monitoramento são influenciados pelo nível de dispersão geográfica das unidades das redes. Verifica-se também o efeito de variáveis que tornam o monitoramento a distância mais factível e eficiente, o que modera o custo de monitorar unidades a distância. Para tal objetivo, um total de 376 redes associadas à Associação Brasileira de Franchising (ABF) são investigadas em uma análise cross-section tendo como base o ano de 2011. Os resultados indicam que, de fato, custos de monitoramento levam as redes a praticarem taxas menores como forma de incentivar e motivar franqueados. Porém, características das redes com relação a maior nível monitoramento mitiga tal efeito. Os resultados são mais claros para taxas variáveis de franquia (royalties). Também se constatou que as taxas de franquias não apresentam efeito substitutivo entre elas, ou seja, não são inversamente proporcionais, o que indica uma diferenciação do cenário brasileiro em relação a outros países. / Franchise chains are a type of hybrid arrangement of governance, which usually owned and franchised stores operate under the same brand and business format. Considering that franchise fees (fixed and variable) are among the main sources of the franchisor´s income, (otherwise the franchisor\'s major source), this paper aims to identify evidence for setting these fees for franchise chains. The variation of such fees is compared to the chains monitoring capacity, considering that monitoring costs are influenced by the geographical dispersion level of the units of the chains. There is also the effect of variables that make the remote monitoring more feasible and efficient, which moderates the cost of monitoring distance units. To this aim, 376 chains associated with the Brazilian Franchising Association (ABF) are investigated in a cross-section analysis based in 2011. The results indicate that, in fact, monitoring costs lead the networks to practice lower rates as a way to encourage and motivate franchisees. However, chains characteristics related to higher-level of monitoring mitigates this effect. The results are more evident to franchise variable fees (royalties). It was also found that franchises fees show no substitute effect between them, ie they are not inversely proportional, which indicates a differentiation of the Brazilian scenery in relation to other countries.

Redes de franquia constituem um tipo de arranjo híbrido de governança onde, normalmente, lojas próprias e franqueadas operam sob uma mesma marca e formato de negócios. Considerando que taxas de franquia (fixas e variáveis) estão entres as principais fontes de receita do franqueador senão a principal, este trabalho tem por objetivo identificar evidências quanto a fixação destas taxas por redes de franquia. A variação de tais taxas é comparada à capacidade de monitoramento das redes, considerando que custos de monitoramento são influenciados pelo nível de dispersão geográfica das unidades das redes. Verifica-se também o efeito de variáveis que tornam o monitoramento a distância mais factível e eficiente, o que modera o custo de monitorar unidades a distância. Para tal objetivo, um total de 376 redes associadas à Associação Brasileira de Franchising (ABF) são investigadas em uma análise cross-section tendo como base o ano de 2011. Os resultados indicam que, de fato, custos de monitoramento levam as redes a praticarem taxas menores como forma de incentivar e motivar franqueados. Porém, características das redes com relação a maior nível monitoramento mitiga tal efeito. Os resultados são mais claros para taxas variáveis de franquia (royalties). Também se constatou que as taxas de franquias não apresentam efeito substitutivo entre elas, ou seja, não são inversamente proporcionais, o que indica uma diferenciação do cenário brasileiro em relação a outros países. / Franchise chains are a type of hybrid arrangement of governance, which usually owned and franchised stores operate under the same brand and business format. Considering that franchise fees (fixed and variable) are among the main sources of the franchisor´s income, (otherwise the franchisor\'s major source), this paper aims to identify evidence for setting these fees for franchise chains. The variation of such fees is compared to the chains monitoring capacity, considering that monitoring costs are influenced by the geographical dispersion level of the units of the chains. There is also the effect of variables that make the remote monitoring more feasible and efficient, which moderates the cost of monitoring distance units. To this aim, 376 chains associated with the Brazilian Franchising Association (ABF) are investigated in a cross-section analysis based in 2011. The results indicate that, in fact, monitoring costs lead the networks to practice lower rates as a way to encourage and motivate franchisees. However, chains characteristics related to higher-level of monitoring mitigates this effect. The results are more evident to franchise variable fees (royalties). It was also found that franchises fees show no substitute effect between them, ie they are not inversely proportional, which indicates a differentiation of the Brazilian scenery in relation to other countries.