Franchise Fees, what are they all about?

What is a franchise fee?

A franchise fee is collected from a cable customer, and then forwarded on to the City of Blackwell to cover the cost of repair and maintenance to the City’s right of ways, caused by Get LLC Real Cable.

According to the 1998 Get LLC Real Cable franchise that was voted in by the Citizens of Blackwell, 5% of Gross Revenues went to the use of the Right of Ways and attachments to the poles owned by YOU.

Gross Revenues were only revenues incurred by Basic Cable, and Basic Cable was any cable package tier that included local broadcasting.

For the past 10 years the City of Blackwell has collect from YOU, the cable customer, almost $50,000 a year to maintain the right of ways.

Does it take $50,000 to maintain the right of ways because of the cable installers driving down the alleys to connect you cable?

We asked with a Open Records, and they provided nothing.

So… If it only cost the City of Blackwell $10,000 a year to maintain the right of ways, the City collected and used $40,000 of your money for something that was not approved by the franchise.

The new franchise that the City of Blackwell wants Get LLC to agree to says that we have to collect franchise fee from YOU, on not only Basic like before, but now on new items, such as…

Disconnect Fee Reconnect Fees Internet Service Remote Control Rental Premium Channel Tiers Installation Fees Change of Service Fees Late Charge Fee

leased access channel fees; all Cable Service lease payments from the Cable System; administrative fees fees payments or other consideration received by the Franchisee from programmers for carriage of programming on the Cable System;

revenues from rentals or sales of converters or other Cable System equipment; advertising revenues launch fees the fair market value of consideration of barter received by the Franchisee for use of the Cable System to provide Cable Service

revenues from program guides revenue from data transmissions to the extent these transmissions are considered Cable Services under Federal law additional outlet fees revenue from interactive services to the extent they are considered Cable Services under Federal law

revenue from the sale or carriage of other Cable Services revenue from home shopping bank-at-home Channels other revenue-sharing arrangements

Gross Revenues shall include revenue received or recognized by Franchisee or any entity other than the Franchisee where necessary to prevent evasion or avoidance of the obligation under this Franchise to pay the Franchise Fees.

Do they really need all of that?