Franchise Agreement (Right-of-Way)
Gridlync land and infrastructure glossary.
A franchise agreement is a grant from a government, such as a city or county, that gives a utility, telecom, or cable provider the right to use public rights-of-way and streets to install and operate its lines, often in exchange for franchise fees. It is the public-land counterpart to a private easement. Franchise terms typically set a fee, often a percentage of local revenue, a term of years, and standards for installing and maintaining facilities in the public right-of-way. Providers must hold a franchise in each municipality they serve, creating many parallel agreements with different fees and renewal dates.
Telecom, fiber, and utility operators hold franchise agreements across many municipalities, each with its own fees and renewals. Gridlync keeps every franchise, payment, and term organized in one place.
Example
FiberOne signs a 15-year franchise agreement with the City of Brookhaven to lay broadband conduit under city streets, paying 5 percent of its local gross revenue in franchise fees and following the city’s permitting and restoration standards.