This fee can be renegotiated when the franchise agreement comes up for renewal, usually at intervals of 10 to 12 years.
Franchise fees are governed under Section 622 of the Cable Communications Act of 1984.
[2] Section 622, states that municipalities are entitled to a maximum of 5% of gross revenues derived from the operation of the cable system for the provision of cable services such as Public, educational, and government access (PEG) TV channels.
[1] If it just appeared on accounting statements as a lump sum payment by the cable provider, it would be perceived by the public more as a fee-for-service,[1] which is how governments tend to regard it.
Cable providers, in contrast, see the fee as a cost of doing business which they are passing along to the customer.