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The franchise fee is set during initial negotiation of the franchise agreement, usually by a process in which the government requests bids from cable providers to serve their community. This fee can be renegotiated when the franchise agreement comes up for renewal, usually at intervals of 10 to 12 years.
A franchise fee is a fee or charge that one party, the franchisee, pays another party, the franchisor, for the right to enter in a franchise agreement. Generally by paying the franchise fee a franchisee receives the rights to sell goods or services, under the franchisor's trademarks, as well as access to the franchisor's business processes.
A local franchise authority (LFA) is a United States local government organization that, together with the Federal Communications Commission (FCC), regulates cable television service within the local government's area. [1] In some cases the LFA is the state, while in others it might be a city, county, or municipality.
The fees could have also helped pay for basic government access programming like video of council meetings, which has struggled for funding as people have switched from cable to streaming services.
The change to the ordinance to establish the fees passed its final reading by a 4-1 margin, the same tally as two weeks ago. As a result, franchise fees will become part of the city's finance ...
Apr. 12—OTTUMWA — The City of Ottumwa is looking at the possibility of introducing franchise fees as a new stream of revenue. The Wapello County Board of Supervisors isn't a fan. During ...
Cable television franchise fees stem from a community's basic right to charge for use of the property it owns. The cable television franchise fees represent part of the compensation a community receives in exchange for the cable operator's occupation and the right-of-way use of public property. A franchise fee is not a tax; it is a rental charge.
This same government often receives cable television franchise fees that come from the cable companies. Negotiation for PEG television services can often be hindered by obstructive or restricting behavior from the cable company, a competing cable provider, or the government officials and staff issuing the franchise agreement.