How bus franchising works: a practical guide for UK authorities

Bus franchising lets a local transport authority take control of its bus network — specifying routes, fares, frequencies and standards, then contracting operators to deliver them. It is the most significant lever available to authorities under the Bus Services Act 2017, and the path most likely to deliver a coherent, passenger-centric network. It is also a large, complex and expensive programme. This guide walks through the statutory process step by step, and shows where a leaner, packaged route — the LiteFranchise™ framework — can compress timelines and de-risk delivery.

What is bus franchising?

Under a deregulated model (in force across England outside London since 1986), commercial operators decide which routes to run, the timetable, the fares and the branding. The authority can only influence the network through subsidy, partnership or information. Franchising reverses that: the authority specifies the network and lets contracts to operators who run it on the authority's behalf. Operators are paid to deliver the specified service; revenue and network-level commercial risk sit with the authority.

The model is well established. Transport for London has run bus services on a franchise basis since the 1980s. Greater Manchester became the first English mayoral combined authority to re-franchise under the 2017 Act, with the Bee Network rolling out in phases from 2023.

The legal framework: Bus Services Act 2017

The Act sets out the powers and the statutory process. In summary an authority must:

• Prepare a franchising assessment that compares franchising against realistic alternatives.
• Commission an independent audit of the assessment.
• Consult passengers, operators, neighbouring authorities and other affected parties.
• Take a formal decision to franchise, supported by the audited assessment and consultation.
• Publish a franchising scheme and run a transition period before services start.

The five stages of the franchising process

1. Strategic case & assessment

The assessment is the heart of the process. It must compare franchising against credible alternatives — typically an Enhanced Partnership and a "do minimum" baseline — across five areas the Department for Transport guidance specifies: effectiveness, value for money, affordability, deliverability and the wider implications for the authority. Expect this stage to take 12–24 months, including data gathering, network design, financial modelling and stakeholder engagement.

2. Independent audit

An independent auditor reviews the assessment for the quality of analysis and assumptions. The audit does not say whether the authority should franchise — it tells the authority and the public whether the assessment is robust enough to support that decision. Build time into the plan for audit findings to feed back into the assessment.

3. Consultation

A statutory consultation, typically 12 weeks, opens the assessment, audit and proposed scheme to passengers, operators, trade unions, neighbouring authorities, the Traffic Commissioner and others. Consultation responses must be analysed and reflected in the final decision.

4. Decision & scheme making

The authority (in practice, the mayor or the relevant decision-making body) decides whether to franchise, taking account of the assessment, audit and consultation. If the decision is to proceed, the franchising scheme is published, setting out the area, the start date and the transition arrangements.

5. Procurement & transition

Contracts are procured (usually in geographic packages), depots and assets transferred or replaced, drivers TUPE-protected, ticketing and fares migrated, branding deployed and the first franchised services launched. Most live programmes phase services in over 18–30 months to manage risk.

Costs, timeline and the affordability question

Published programmes have cost authorities in the order of £10–20m to reach decision, with ongoing scheme costs in the tens of millions of pounds per year once running (offset by farebox revenue and network savings). End-to-end timelines of three to five years are typical. For many authorities, especially outside the largest combined authority footprints, that cost and duration are the binding constraint — not the policy case.

A leaner route: the LiteFranchise™ framework

The LiteFranchise™ framework is ITA's packaged answer to that constraint. It keeps the strategic outcomes of franchising — network specification, fare control, integrated branding and operator accountability — and removes the bespoke, repeated work that drives cost and time out of every programme. It bundles a network specification approach, a contract template suite, a financial model, a delivery operating model and the technology stack (TellUs, OneContact, 16Dashboard, IDInsight) that runs the network day to day.

For authorities still weighing the decision, LiteFranchise can also sit alongside the statutory assessment as the costed delivery option — making "what would franchising look like here?" an answerable question in months rather than years.

Read the framework overview on the LiteFranchise resource page, or get in touch via the contact page to discuss how it would apply in your area.

Frequently asked questions

How does bus franchising work in practice?

The authority designs the network it wants — routes, frequencies, fares and standards — and tenders contracts to operators to deliver that network. Operators are paid to run services to specification; the authority keeps fare revenue and carries the network-level commercial risk.

Which authorities can franchise?

Mayoral combined authorities have direct access to franchising powers. Following the 2017 Act and subsequent reforms, other local transport authorities can also pursue franchising subject to government consent and the statutory process described above.

What's the difference between franchising and an Enhanced Partnership?

An Enhanced Partnership is a structured agreement between the authority and operators, with enforceable commitments on standards, fares and information. Franchising replaces the commercial market in the area with authority-let contracts. EPs are faster and cheaper to set up; franchising offers the strongest network control. ITA's Optimised Enhanced Partnership model is designed to push EPs as far as they can go for authorities that want most of the benefits without the full franchising programme.

How long does franchising take?

Three to five years from initial assessment to first franchised services is typical. The LiteFranchise framework is built to compress that timeline by removing the bespoke design and procurement work from the critical path.