Definitions

What is a franchising framework?

A franchising framework is an overarching framework which establishes the structure of the franchise and how it will operate. Any changes to the franchising framework once it has been made will be subject to the variation process described elsewhere in this document. To limit the number of variations and ensure the franchising framework is reasonably future proofed, the LTA needs to consider any new developments, housing proposals, etc. which may impact the framework after it is made.

The LTA needs to carefully consider the level of detail that is required for the framework, whilst ensuring that it clearly sets out the requirements that must be met. The LTA should note that amendments to a framework, once in operation, will require a variation. Further information about varying a franchising framework can be found later in this document.

The proposed franchising framework must specify: -

• the area to which it relates,
• the local services (other than those exempted from the framework) that are to be provided under franchise agreements,
• local services included in the franchise agreements and when they come into operation,
• the standards of those services that must be provided under the franchise agreements,
• the period during which the franchise will remain in operation,
• if a franchising framework relates to an area to which a proposed Partnership Scheme also relates, the proposed framework must include provision revoking the Partnership Scheme, or provision varying the Partnership Scheme so that it ceases to relate to any part of the area to which the proposed franchising framework relates when the franchising framework will start,
• the framework may provide for the exemption of local services as may be specified, as well as specifying conditions (if any) as to when such exemptions are to apply.

What is an assessment of a franchising framework?

An LTA which proposes to make a franchising framework covering all or part of an area must prepare an assessment of the proposed framework under section 13E of the 2001 Act. The assessment is a separate document to the franchising framework and is similar to a business case and details on what this must include can be found later in this document.

What is a franchising agreement?

A franchising agreement means an agreement under which: -

• an LTA grants to another person the exclusive right to operate local services to which the agreement relates, and that person undertakes to provide those services on the terms specified in the agreement (e.g. frequency, fares, and standard of services).
• Operators who enter into franchising agreements may be paid for providing the services or they may pay for the opportunity to provide them. This reflects the different prevailing market conditions, in which it may be necessary to pay operators, and in others the profitability is such that operators will pay for the exclusive right to provide them.