Overview of the franchising process

Visual summary

Written summary

Initiation

LTA explores with stakeholders whether to proceed with franchising across all or part of an area taking into account how this fits with its relevant general policies.

Preparation of proposed framework

LTA prepares a proposed franchising framework which includes:- the area covered; the services provided; dates services are in operation; the period covered; and standards.

Assessment of proposed framework

LTA prepares the assessment of the proposed franchising framework, including contribution to policies; comparison against non-franchising options; effect on adjacent areas; how it will be operated; financial implications; and how it will be reviewed.

Audit

LTA obtains report from an independent auditor on the financial implications which considers the quality of information used; quality of analysis of information; whether guidance has been followed.

Consultation and Modification

LTA consults on the proposed framework. The LTA may modify the proposed framework (if required). Where modifications materially affect the previous assessment, a new assessment must be prepared.

Approval

LTA asks the Traffic Commissioner to convene an independent approval panel. Independent approval panel decides whether to approve the proposed framework. The decision can be framework approved; framework approved with modifications or framework rejected.

Franchise in Operation

LTA must make the framework within 6 months of approval. LTA may apply for approval to vary or revoke the franchising framework.