Cable franchise agreements are legal agreements between a local government and a cable company (franchisee) which provide the franchisee the right to construct, install, maintain and operate a cable system on County Public Rights-of-Way in exchange for the franchisee's promise to provide cable service to residents of the County.
What is a cable franchise agreement?
Does Colorado Springs have a cable franchise?
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What is the purpose of a franchise agreement?
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.
Does a cable station need a franchise from the local government?
Under the Cable Communications Policy Act of 1984 (Cable Act), cable operators must obtain franchises from state or local franchising authorities, and these authorities may continue to condition franchises on various requirements.
How long does a franchise agreement 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 is a franchise fee on a bill?
Fees are assessed on the bills of customers of private companies, not usually customers of cooperatives or city-owned utilities. Typically, a franchise fee recoups the cost of the utility companies' use of public space––also called public “right-of-way”––for energy infrastructure such as power lines or gas pipelines.
Why am I paying a franchise fee on my cable bill?
In the United States cable television industry, a cable television franchise fee is an annual fee charged by a local government to a private cable television company as compensation for using public property it owns as right-of-way for its cable lines.
How do cable companies get their channels?
Cable companies offer a lot of channels, but how do they pay for them? Cable companies pay each network owner for each household receiving the signal for a given network. You make the payment irrespective of whether any of the families watch the programs from that channel or not.
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.
Can you walk away from a franchise?
Franchisors have a vested interest to ensure their franchisees success, but they are generally not in the business of letting franchisees out of their contracts early without some form of compensation. A franchise agreement is a fixed term contract and there is no early right to exit unless the parties agree.
What percentage does a franchise take?
Franchise royalties range from 4% of your revenue all the way up to 12% or more. The amount has to do with the type of franchise business. For example, a food franchise is a high-volume business. A lot of individual items are purchased by a high-volume of customers.
How do franchise owners get paid?
How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity.
What are the 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 do you negotiate a franchise agreement?
8 Things to Consider When Negotiating a Franchise AgreementFirst of all, never sign any agreement without negotiating. ... Negotiate extensions. ... Your right to obtain waivers in the event of the franchisor's company-wide decisions. ... Make sure that all fees are disclosed. ... Have as few requested changes as possible.More items...•
What is a local franchise agreement?
Franchises are basically the negotiated agreement between broadband carriers and local communities on how access will be provisioned—essentially, a license to do business in the area.
What is the role of a franchise authority?
A franchising authority is the local municipal, county or other government organization that regulates certain aspects of the cable television industry at the state or local level.
What does the filing of forms and reports in a cable operators Public File reflect?
What does the filing of forms and reports in a cable operator's public file reflect? To provide the permissions necessary to allow a cable operator to use the public right-of-way within the franchise area, in order to access and connect customer premises.
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)).
Examples of Cable Franchise Agreements
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.
Recommended Resources
Buske Group — Private consulting firm's website includes publicly available examples of franchise agreements and a file archive including an overview of the cable franchise renewal process, community needs assessments, and other helpful information.
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.
