What the sector pays
Franchise invoices issued in Belo Horizonte total R$ 110.7 million in 2024
ISS calculation base of service invoices issued in Belo Horizonte under code 1708-0/01-88, franchising, in 2024
See the full table (6 rows)
| Year | Franchise invoices | Calculation base, franchising | Calculation base, franchise agent services | Share of the municipal base |
|---|---|---|---|---|
| 2020 | 10,470 | R$ 42.6 million | R$ 38.9 million | 0.098% |
| 2021 | 14,976 | R$ 71.4 million | R$ 43.3 million | 0.134% |
| 2022 | 19,311 | R$ 93.6 million | R$ 54.8 million | 0.147% |
| 2023 | 21,189 | R$ 94.8 million | R$ 52.6 million | 0.133% |
| 2024 | 25,655 | R$ 110.7 million | R$ 70.7 million | 0.140% |
| 2025, through November | 29,193 | R$ 137.3 million | R$ 107.2 million | 0.117% |
Franchising is a service taxable by ISS (municipal service tax), under subitem 17.08 of the list annexed to Complementary Law 116, and the tax is owed to the municipality where the franchisor is established. The City of Belo Horizonte publishes, as open data, the calculation base and the number of service invoices issued month by month under each code of its tax table, and code 1708-0/01-88 corresponds to franchising, with a rate of 3%. The data show how much the franchisors established in the city bill for the franchise service, and not how much franchised units sell in the municipality.
The calculation base went from R$ 42.6 million in 2020 to R$ 110.7 million in 2024, in 25,655 invoices. From January to November 2025, it totaled R$ 137.3 million, 34.5% above the same period of 2024. The municipal table also has a code for agent services, brokerage and intermediation of franchise contracts, under subitem 10.04, which covers the activity of those who sell third-party franchises and totaled R$ 70.7 million in 2024, with an increase of 67.1% in the available period of 2025.
The Rio de Janeiro indicator measures the same subitem with another concept, the revenue declared in Nota Carioca, Rio's electronic service invoice system, and the two figures should not be added together or compared directly. Together, the two series show the trajectory of the revenue of franchisors based in the two state capitals that publish the data by service code.
How we calculate
The figures come from the Receita de ISSQN por CTISS dataset (ISS revenue by municipal tax code), from the Open Data Portal of the City of Belo Horizonte, which provides, by tax code and month of issue, the number of electronic service invoices and the ISS calculation base of the invoices taxed in the municipality, from January 2020 to November 2025. We added up the months of each year under codes 1708-0/01-88, franchising, and 1004-0/07-88, agent services, brokerage or intermediation of franchise contracts, in accordance with SMFA Ordinance 074/2021. The municipality's base share divides the calculation base of the franchise code by the sum of all codes in the year, excluding the row for code 0902-0/01-88 in October 2024, which shows a base of R$ 2.96 trillion, an evident error in the file. The values are nominal.
What this figure does not show
- The calculation base is not the tax collected. Companies under Simples Nacional (simplified tax regime for small companies) pay ISS through the single payment slip, at a different percentage, and the base should not be multiplied by the 3% rate to estimate the tax.
- The data cover only invoices taxed in Belo Horizonte, issued by franchisors established in the city, and cannot be extrapolated to the state or the country.
- The code receives whatever each company classifies under it. Royalties recorded as assignment of the right to use a trademark, under subitem 3.02, or under another code are left out, and the franchise code may include fees that are not royalties.
- The year 2025 covers January to November, and the change compares the same period of 2024.
- The values are current, without a deflator.
Frequently asked questions
How much do franchisors bill in Belo Horizonte?
Service invoices issued in Belo Horizonte under the franchise code totaled R$ 110.7 million in ISS (municipal service tax) calculation base in 2024, and R$ 137.3 million from January to November 2025.
What is the ISS rate on franchising in Belo Horizonte?
The municipality's table of tax codes, in SMFA Ordinance 074/2021, sets a rate of 3% of ISS (municipal service tax) for code 1708-0/01-88, franchising. Companies under Simples Nacional (simplified tax regime for small companies) pay the tax through the single payment slip, at a different percentage.
Do franchises pay ISS in Brazil?
Yes. Franchising is in subitem 17.08 of the list of services of Complementary Law 116, and ISS (municipal service tax) is owed to the municipality where the franchisor is established.
Report an error on this page (in Portuguese)
What the sector paysOther indicators in the same group
Maintained by Marktech, which serves franchise networks and franchises. The brands cited belong to their owners and are mentioned here only to identify the network the data refers to.