Franchise agreement
Definition
A franchise agreement is a contract between a local government and a utility or cable company that lets the company use public streets and rights-of-way for its pipes, cables, or poles, in exchange for franchise fees and conditions like public-access channels or service requirements.
Why it matters
Franchise agreements are often negotiated for decades at a time and renewed with little public scrutiny, even though they set the terms for essential services like cable, internet, and utility infrastructure. Councils have leverage to demand public benefits during renewal negotiations, but only if they use it before signing another long-term deal.
Seen in the wild
Cable franchise agreements have been governed by federal rules since 1984 and 1996 updates requiring providers to offer public benefits, including public-access channels and studio equipment, in exchange for the right to use city rights-of-way, a framework documented across state municipal league model agreements including Oregon's League of Cities model franchise template.1