09/10/2026
Canadian 101: What is a Utility Franchise Agreement?
You may have heard the term “franchise agreement” during recent City Council discussions, but what does that actually mean?
A utility franchise agreement is an agreement between the City and a utility company that allows the company to use public rights-of-way — such as streets, alleys, and easements — to install, operate, and maintain utility infrastructure.
These agreements can cover things like electric, gas, telephone, cable, and other utility services.
A franchise agreement typically sets out the rules for how the utility may use City rights-of-way, how infrastructure is installed and maintained, how long the agreement lasts, and what responsibilities both the City and the utility have.
Many franchise agreements also include a franchise fee. That fee compensates the City for the utility’s use of public rights-of-way.
In simple terms, a franchise agreement helps establish the rules of the road for a utility company operating within the City.
Canadian 101 is a weekly series to help explain how your city government works.