Entering into franchising agreements

Notice

Under section 13L(4) of the 2001 Act, the LTA must give notice within 14 days after the date on which the LTA enters into a franchising agreement. They must: -

• give notice of their having made the agreement to all operators of local services who are, in their opinion, likely to be affected by the agreement, and the TC, and
• publish the notice in such a manner as they consider appropriate for bringing the notice to the attention of persons in the area of the franchising framework.

Information on what should be included in the notice can be found in Appendix B.

Postponing commencement of franchising frameworks or variations

In some circumstances, it may be necessary to postpone when a franchising framework is to come into operation as it relates to a particular local service. For example, this may be relevant where unexpected events have delayed the preparations for launching a service or services.

Where a framework specifies the date in which it is to come into operation, as set out in section 13K(5)(a), the LTA must seek approval to vary the framework under section 13N of the 2001 Act should they wish to postpone that date.

Where no date is specified in the framework, as set out in section 13K(5)(b), and instead the commencement date is specified under the franchise agreement in respect of a service, then section 13M provides that the LTA may, if they consider it appropriate, decide to postpone the date on which a framework or variation to a framework comes into operation. The postponement, so far as relating to a local service, can be for one or more periods but in total these cannot exceed 12 months.

Before postponing the date on which the framework or variation comes into operation the LTA must consult all operators who are likely to be affected by the decision.

Notice

Under section 13M(4) of the 2001 Act, the LTA must give notice within 14 days after the date on which the LTA postpone the date on which a framework or variation comes into operation. They must: -

• give notice of the postponement to all operators of local services who are, in their opinion, likely to be affected by the postponement, and the TC, and
• publish the notice in such a manner as they consider appropriate for bringing the notice to the attention of persons in the area of the franchising framework.

Information on what should be included in the notice can be found in Appendix B.

Non-implementation of a franchising framework

If an LTA makes the franchising framework but fails to enter into franchise agreements in respect of each local service included in the framework, and does not vary it, then the framework will cease to have effect on the date on which the 12-month period ends.

The only exception is in cases where an LTA has made the franchising framework but has then provided the TC with an application for approval to vary that framework, and a panel will be convened under section 13O to consider that application.

Should the panel refuse to approve the proposed variation, or the panel approves the variation, but the LTA has not varied the framework within the period specified in section 13K(2) of the 2001 Act, then the franchising framework ceases to have effect

• on the date that the panel refuse to approve the variation, or

on the date which falls at the end of the period of 6 months after the date of approval.