Under federal law, cable providers must have a franchise agreement with a local government (also known as a “local franchising authority”) to operate its cable system. Franchise agreements allow providers to operate a cable system in the public rights-of-way in return for certain benefits to the local government.
What is a cable franchise agreement?
Does Colorado Springs have a cable franchise?
About this website
What is a telecommunications franchise agreement?
Franchises are customarily granted in exchange for an annual fee to place telephone, electric, gas, fiber optic and cable television lines in streets or on public property. The fee is not a tax.
How do franchise contracts work?
A franchise agreement is a contract under which the franchisor grants the franchisee the right to operate a business, or offer, sell, or distribute goods or services identified or associated with the franchisor's trademark.
What 3 things are typically included in a franchise agreement?
Franchise agreements vary between different franchises, but these seven areas should be addressed in every franchise agreement.Use of Trademarks.Location of the Franchise.Term of the Franchise.Franchisee's Fees and Other Payments.Obligations and Duties of the Franchisor.Restriction on Goods and Services Offered.More items...
Why am I paying a franchise fee on my cable bill?
Franchise Fee Franchise fees are paid to local governments as compensation for Comcast's use of the public rights-of-way and easements. The Federal Cable Act authorizes cable operators to collect from customers the full amount of franchise fees paid to local governments.
How long do franchise agreements last?
between five and 20 yearsThe typical length of a franchise agreement is between five and 20 years. A common reason for this general length of time is often the size of the franchisee's initial investment, though market conditions and the type of franchise can also be factors.
What happens at the end of a franchise agreement?
When your franchise agreement expires, it is incumbent on a franchisee to immediately cease all franchise operations. This means: De-identification: The franchisee must stop using the franchisor's trade name and trademarks. This involves removing any signage from your place of business.
What are 2 advantages of a franchise?
Advantages of buying a franchise You don't necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model. Franchises have a higher rate of success than start-up businesses. You may find it easier to secure finance for a franchise.
How much is the average initial franchise fee?
between $25,000 to $50,000Franchise fees are typically between $25,000 to $50,000 on average. 2) Startup Costs: These are the expenses you'll incur to get your new business open and operating. Initial investment costs vary widely from franchise to franchise.
What is initial franchise fee?
Referring to an “initial franchise fee” is a bit more on-point; the initial franchise fee is a one-time, upfront amount that a prospective franchisee pays to the franchisor for the rights to acquire a franchise, develop the location and join the franchise system.
How do I get rid of Comcast TV broadcast fee?
Unfortunately, the only way you can get rid of this charge is by canceling your television services with Comcast or Xfinity. Although some people resort to contacting third-party service providers to do the negotiations, those would just be minor things.
What is the difference between broadcast and cable TV?
Unlike broadcast channels, cable channels like Animal Planet, AMC, or Comedy Central do not use public airwaves. Instead, they charge viewers subscription fees for transmission. Cable channels are private entities offering all the pros and cons of private, demand-driven media.
Does Comcast require a contract?
Xfinity offers both contract and no-contract packages, so not every customer will be subject to ETFs.
How do you get out of a franchise agreement?
These are your options:Sell the franchise.Franchisor buy back.Walk out.Dispute resolution and mediation.Negotiating an exit.
Can franchise be taken away from you?
The franchisor, however, has the power to terminate or not to renew your contract. You can essentially be fired, your franchise taken away, resulting in you holding the metaphorical bag.
What are important things to understand before signing franchise contract?
It should be precisely set out how the franchisee may use the franchisor's intellectual property. It is also necessary to highlight in the franchise agreement, the prohibition on the usage of the trademark by the franchisee; post-termination of the franchise agreement.
How much is the average initial franchise fee?
between $25,000 to $50,000Franchise fees are typically between $25,000 to $50,000 on average. 2) Startup Costs: These are the expenses you'll incur to get your new business open and operating. Initial investment costs vary widely from franchise to franchise.
How much is a cable TV franchise fee?
Cable TV franchise fees may be levied at a rate up to 5% of gross revenues from the franchise area every year ( 47 U.S.C. §542 (a) and (b)).
When did the FCC order stop franchise fees?
New FCC order: On August 2, 2019, the Federal Communications Commission (FCC) passed a new order that will restrict local government cable franchise fees and agreements. In particular, the order:
What is Moses Lake Cable?
Moses Lake cable franchise agreement, Video Internet Broadcasting Corporation (2002) — Granted to a company that provides video services over a fiber network built and owned by the county PUD. Franchise fee and terms are similar to franchises granted to cable providers that provide services over their own wires.
Is there a franchise agreement for cable TV in Washington?
Below are examples of local government cable TV franchise agreements in Washington. However, be advised that these franchises may not be in compliance with the 2019 FCC order described above. We will be adding new examples as they become available.
What is a franchise agreement?
Simply put, a franchise agreement is the legally binding document drawn up between a franchisor (the company that owns the brand/system of doing business) and the franchisee (the person who is buying into the franchise).
What does a franchise agreement include?
The most typical franchise agreements are single and multi unit, and they will usually include variations on these clauses:
How do you draft a franchise agreement?
While there are franchise agreement advantages disadvantages, one good thing about them is that many of the parts of the franchise agreement are negotiable. Another thing is that you probably won’t have to come up with one on your own.
Why do cable companies need franchises?
Why does the cable company need a cable franchise? The cable company is required by both federal and state law to secure a franchise from the local government. - In some states the authority of local government to grant the franchises has been removed and the franchises are generic in nature and issued by a state agency.
What is the purpose of the franchise renewal process?
It is designed to protect the rights of the incumbent cable provider while also ensuring that a community's current and future cable-related needs and interests are satisfied, taking cost into consideration.
Can a cable provider renew a franchise?
While federal law also permits the use of informal franchise renewal negotiations with the cable provider at any time (including simultaneously with the formal process), a franchising authority must be prepared to follow the requirements of the formal process because either side may choose to return to that process at any time during the renewal proceedings. Typically, renewal proceedings alternate between the formal and informal processes several times.
What is a Franchise Agreement?
Franchise agreements are legal documents between a franchisor and a franchisee. They generally include franchise disclosure documents (FDDs) governed by the Federal Trade Commissions’ FTC Franchise Rule. A franchise agreement incorporates the rights and obligations of the franchisor and franchisee to license and sell a company’s intellectual property and licensing rights.
Who is involved in a franchise agreement?
The parties involved in a franchise agreement are the franchisor and franchisee. While there may be third parties involved, such as franchising lawyers and insurance companies, the center of a franchise agreement applies the primary principles described below.
Do franchise agreements have the same elements?
Franchise agreements primarily contain the same elements regardless of the type you use. There may be critical differences, however, if you need a highly specialized agreement. As such, you should always seek a customized option when drafting your contracts.
What is a franchise agreement?
A franchise agreement is a legally binding document that establishes the terms of the franchisor and franchisee relationship. It explains in detail what the franchisor expects of you.
How long is a franchise contract?
Duration –This section sets forth the length of the franchise contract. The average term is between 10-20 years, according to Franchise Gator.
What causes a franchise agreement to be terminated?
Termination/Non-Competes – Non-payment of the franchise fee, bankruptcy, and failure to make necessary repairs to the franchise property are common causes for early termination of your contract with the franchisor. This section also includes restrictive covenants to what franchise owners can do should they terminate the agreement early. For example, you or an affiliated company may not be permitted to operate a competing business for a period of years.
How long does it take to get a franchise agreement signed?
The franchise agreement must be attached to the FDD and delivered a minimum of 14 days before a binding contract is signed. This gives you time to review the agreement with an attorney.
What is the FTC's oversight of franchises?
Franchises fall under the Federal Trade Commission oversight. The FTC has a set of regulations that govern most franchises. Franchisors must abide by strict transparency requirements in the form of a Franchise Disclosure Document (FDD) that every prospective franchise owner will receive.
Do you need a franchise agreement for a nail salon?
Whether you want to invest in a nail salon, restaurant, or urgent care franchise, you will be required to do one thing all these businesses have in common: sign a franchise agreement.
What is a cable franchise agreement?
The Cable Franchise Agreements give the City of Colorado Springs (the Cable Franchise Authority) oversight on how the cable providers use the Public's easements and right-of-ways, and limited authority over customer service issues. Cable service customers who live within the city limits of Colorado Springs may contact the Cable Franchise Authority if the customer is unsuccessful in addressing a customer service issue with the cable provider. The Cable Franchise Authority will then contact the cable provider on the customer's behalf. Though the Cable Franchise Authority’s oversight of the cable providers is limited, an acceptable solution can usually be found.
Does Colorado Springs have a cable franchise?
The City of Colorado Springs currently has Cable Franchise Agreements with Comcast, Falcon Broadband, and CenturyLink. Administration of these agreements is handled by the Office of Innovation and Sustainability.
Federal Regulations
- Cable television franchise agreements are governed by federal law rather than state law and are negotiated with the cable company. Cable TV franchise fees may be levied at a rate up to 5% of gross revenues from the franchise area every year (47 U.S.C. §542(a) and (b)). On August 2, 2019, the Federal Communications Commission (FCC) passed an orderth...
Public Access Television ("Peg") Channels
- Local governments authorizing cable television franchises may require cable operators to set aside channels for public, educational, or governmental (PEG) use. The channels are: 1. Public access channels, which are available for use by the general public and administered either by the cable operator or by a third party designated by the franchising authority, 2. Educational access …
Examples of Cable Franchise Agreements, Codes, and Ordinances
- Below are examples of local government cable TV franchise agreements and ordinances related to such agreements.
Recommended Resources
- The Buske Group — Private consulting firm whose website includes a file archivewith sample documents related to the franchise process such as a community needs assessment, operating rules and proce...
- Federal Communications Commission: Cable Television— Offer information about federal cable television rules and laws.
- The Buske Group — Private consulting firm whose website includes a file archivewith sample documents related to the franchise process such as a community needs assessment, operating rules and proce...
- Federal Communications Commission: Cable Television— Offer information about federal cable television rules and laws.
- Findlaw: Cable Franchise Renewal and Local Right of Way Management(2017) — Offers an overview of factors to consider in creating or renewing a cable franchise agreement.
- Metropolitan Area Communications Commission (MACC) — Administers the cable franchise agreements for 15 jurisdictions in Washington and Clackamas counties. Website includes the franchise agreementbe...
