Bus franchising is a chance to reshape how UK communities connect, commute, and thrive. With new powers under the Bus Services Act (2017), local authorities can take the driver’s seat – designing passenger-focused services that are more reliable, affordable, and integrated than in recent decades. 

But how much control should an authority take on, and what technology is required for success?

Drawing on insights from our latest white paper and real-world experience working alongside franchising pioneers Transport for Greater Manchester (TfGM), here’s a practical guide to the three main models of bus franchising and the technology foundations behind them.

Minimal control: Enhanced partnerships

Best for: LTAs seeking quick wins with minimal disruption.

In this model, authorities set the parameters for the bus network and fare policies, but day-to-day operations and the fare collection systems remain with private bus operators. This keeps upfront costs low and lets authorities leverage operator expertise. There are limitations, however, on authorities’ ability to introduce integrated multimodal ticketing or network-wide fare capping in the future.

Moderate control: Account-based back office

Best for: LTAs aiming for improvements passengers can feel, without the responsibility of buying and maintaining hardware.

Here, the authority introduces an account-based ticketing platform – a central back office that unifies fares and manages fare capping across all operators – while operators supply compatible devices and validators. This approach leverages the expertise and legacy hardware of operators, while opening the door to a future of seamless, multimodal Tap and Go contactless fare payments.

Full control: Authority-owned systems

Best For: LTAs with a bold vision for unified mobility and the willingness to invest in long-term impact.

This “gold standard,” seen in London and Manchester, gives the authority full control over all facets of fare collection and information systems – from fare validators to mobile apps. Operators supply the vehicles and drivers, but the LTA sets the rules and owns the data. This approach supports rapid innovation, and can drive down operational costs through greater efficiency and unified branding.

Want to dive deeper? Explore the pros and cons of each model of franchising, the technology requirements for success, and real-world lessons from Greater Manchester in our white paper.