Franchise FAQ

a cable franchise quizlet

by Sydney Buckridge Published 2 years ago Updated 1 year ago
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What are the franchise fees for a cable company?

Franchising authorities may charge the cable operator a fee for the right to operate a cable system in that franchise area; however, the franchise fee paid by the cable system can be no more than five percent of its annual gross revenue. A franchising authority may use the money collected from this fee for any purpose.

What rights are included in a cable franchise agreement?

Included in the grant of a franchise to a cable system are rights relating to the construction of the system, including the local franchising authority's authorization to use public rights-of-way, easements, and to establish the areas to be served.

What are the rules of a cable company?

The rules applicable to cable operators fell into several broad subject areas -- franchise standards, signal carriage, network program nonduplication and syndicated program exclusivity, nonbroadcast or cablecasting services, cross-ownership, equal employment opportunity, and technical standards.

How does franchising work?

Why is franchising important?

What is franchising fee?

Does subway have a franchise agreement?

See 1 more

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How does franchising work?

Franchising works well in settings where negotiating with customers is important to sales. For example, equipment rental and tuxedo rental. The level of standardization and codification of the process of creating and delivering the product or service is high. Easy to specify behavior in a contract.

Why is franchising important?

Franchising allows fast growth, which provides the economies of scale needed to cheaply build a brand. For example, Wendy's. The operation is labor intensive. Franchisees are less likely to "shirk" than company-employed managers. For example, maid services. Outlets are not terribly costly or risky to establish.

What is franchising fee?

Franchising is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a payment ("franchise fee"), and usually a percentage of gross sales or profits ("royalty").

Does subway have a franchise agreement?

a new franchise agreement that allows Subway to redirect franchisee advertising dollars away from the Subway Franchisee Advertising Fund Trust, which is governed by a board of elected franchisees, to a separate entity created by Subway.

What is Cable Television?

Cable television is a video delivery service provided by a cable operator to subscribers via a coaxial cable or fiber optics. Programming delivered without a wire via satellite or other facilities is not "cable television" under the Commission's definitions.

How much commercial time can a cable operator broadcast?

Regulations implemented pursuant to the Children's Television Act of 1990 restrict the amount of commercial matter that cable operators may cablecast on programs originally produced and broadcast primarily for children 12 years old and younger. Cable operators may transmit no more than 10.5 minutes of commercial matter per hour during children's programming on weekends and no more than 12 minutes of commercial matter per hour on weekdays. Cable systems must maintain records available for public inspection which document compliance with the rule.

How do cable TV poles work?

Cable operators also may use their own poles, place their cable underground or use transmission facilities or rights-of-way owned or controlled by a utility or municipality. Some may use combinations of these arrangements. Sometimes conflicts arise between cable television systems and utility companies over pole attachment issues, particularly the rates for use of utility facilities and timely access to the infrastructure. The Commission is authorized to resolve pole attachment disputes by regulating the rates, terms, and conditions for cable TV pole attachments to ensure they are just and reasonable. The Commission does not regulate pole attachments in States that have certified that they regulate pole attachments, unless a State fails to act on a complaint in a timely fashion. The Commission periodically issues public notices listing those states which have filed pole attachment regulation certifications.

What is LPTV in the cable industry?

The 1992 Cable Act provides mandatory carriage for "qualified" low power television stations (" LPTV") in certain situations. A LPTV station has to meet certain qualifications specified in the Act and incorporated into the Commission's Rules, before it is qualified for the right to must-carry. See section 76.55 (d) of the Commission’s rules if a LPTV is qualified, it may assert must-carry rights, and, provided the cable operator has not met its mandatory carriage obligations, the LPTV station must be carried. Otherwise, a LPTV station must negotiate for carriage under the retransmission consent provisions or under the leased commercial access provisions.

What was the impact of the 1984 Cable Act?

Following the 1984 Cable Act, the number of households subscribing to cable television systems increased, as did the channel capacity of many cable systems. However, competition among distributors of cable services did not increase, and, in many communities, the rates for cable services far outpaced inflation. Responding to these problems, Congress enacted the Cable Television Consumer Protection and Competition Act of 1992 . The 1992 Cable Act mandated a number of changes in the manner in which cable television is regulated.

What is LPTV in 1992?

The 1992 Cable Act provides mandatory carriage for "qualified" low power television stations("LPTV") in certain situations.   A LPTV station has to meet certain qualifications specified in the Act and incorporated into the Commission's Rules, before it is qualified for the right to must-carry.

What is the retransmission consent for cable?

While the 1992 Cable Act's must-carry provisions only apply to local commercial and noncommercial educational television stations, the Act's retransmission consent provisions apply to all commercial broadcast stations. Many cable systems carry radio stations as an "all-band" offering, meaning that as with any standard radio receiver, all stations which deliver a signal to the antenna are carried on the system. The Commission only requires consent from those radio stations within 57 miles of the cable system's receiving antenna. Thus, even though a cable operator's antenna may pick up a station's signal, operators are not required to obtain the consent of stations outside of the 57 mile zone unless the station affirmatively seeks retransmission consent.

What did the Cable Act do?

The act gave municipalities, governing bodies of cities and towns, principal authority to grant and renew franchise licenses for cable operations. By establishing an orderly process for franchise renewal, the act protected cable operators from unfair denials of renewal.

What is the title of the Cable Communications Act?

The Cable Communication Act of 1984 added "Title VI—Cable Communications" to the Communications Act of 1934. The title was originally divided into the following sections:

Why was the Cable Communications Act of 1984 important?

The Cable Communications Act of 1984 had minimal advantages, because it was enacted around a strong legislative agreement between the demands of cable operators and the demands of the public.

What was the purpose of the Cable Communications Policy Act of 1984?

ch. 5, subch. V–A) was an act of Congress passed on October 30, 1984 to promote competition and deregulate the cable television industry . The act established a national policy for the regulation of cable television communications by federal, state, and local authorities.

Why is cable television important?

Congress recognized the vital role of cable television in encouraging and providing a place for free expression. This provision assured that cable communications provide the general public with "the widest possible diversity of information sources and services.".

Why was the Cable Act important?

In order to balance power between cable television operators and the government, the act established regulations regarding franchise standards and proceeds that would attempt to strengthen the development of cable systems . The act gave municipalities, governing bodies of cities and towns, principal authority to grant and renew franchise licenses for cable operations. By establishing an orderly process for franchise renewal, the act protected cable operators from unfair denials of renewal. However, in order to be granted a franchise renewal, the act specified that cable operators' past performances and future proposals had to meet the federal standards in the new title. The act was meant to reduce an unnecessary regulation that could have potentially brought about an excessive economic burden on cable systems.

When did the FCC rule in favor of Midwest Video Corp?

However, in 1979, the U.S. Supreme Court ruled in favor of Midwest Video Corp. stating that the FCC's new requirements exceeded the agency's statutory powers as granted to them by Congress and as required by cable operators to provide Public-access television.

How does franchising work?

Franchising works well in settings where negotiating with customers is important to sales. For example, equipment rental and tuxedo rental. The level of standardization and codification of the process of creating and delivering the product or service is high. Easy to specify behavior in a contract.

Why is franchising important?

Franchising allows fast growth, which provides the economies of scale needed to cheaply build a brand. For example, Wendy's. The operation is labor intensive. Franchisees are less likely to "shirk" than company-employed managers. For example, maid services. Outlets are not terribly costly or risky to establish.

What is franchising fee?

Franchising is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a payment ("franchise fee"), and usually a percentage of gross sales or profits ("royalty").

Does subway have a franchise agreement?

a new franchise agreement that allows Subway to redirect franchisee advertising dollars away from the Subway Franchisee Advertising Fund Trust, which is governed by a board of elected franchisees, to a separate entity created by Subway.

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