Legal Definitions - disturbance of franchise

Disturbance of franchise refers to the wrongful interference with a special right or privilege that has been legally granted to an individual or entity.

In this legal context, a "franchise" is not a business brand (like a fast-food franchise) but rather a specific authority or permission bestowed by a government or sovereign. This granted right allows the holder to perform a particular function, operate a unique service, or exercise a specific power, often with some exclusivity or public benefit. When someone unlawfully obstructs, impedes, or undermines the legitimate exercise of such a granted right, it is considered a disturbance of franchise.

• Example 1: Exclusive Public Transportation Route

  Imagine a city grants a private bus company an exclusive license to operate a specific bus route within its municipal boundaries for a set number of years, allowing them to collect fares from passengers. If an unauthorized individual or another company begins operating a competing, unlicensed bus service along the exact same route, picking up passengers and collecting fares, this would be a disturbance of franchise.

  Explanation: The bus company holds the "franchise" – the exclusive, legally granted right to operate that specific public transportation service. The unauthorized competitor's actions directly interfere with the bus company's ability to exercise its granted right and earn revenue, thereby disturbing its franchise.

• Example 2: Operation of a Regulated Port Facility

  Consider a situation where a port authority grants a specific maritime logistics company the exclusive right to operate and manage a particular cargo terminal within a public port, including the right to charge fees for docking and cargo handling. If another entity, without authorization, attempts to set up its own cargo handling operations at the same terminal, or actively blocks access for ships intending to use the authorized company's services, this would constitute a disturbance of franchise.

  Explanation: The maritime logistics company possesses the "franchise" – the exclusive legal privilege to operate and manage that specific port facility and collect associated fees. The unauthorized actions of the other entity directly impede the company's ability to carry out its granted functions and collect its rightful charges, thus disturbing its franchise.

• Example 3: Exclusive Right to Collect Tolls on a Private Bridge

  Suppose a state government grants a private consortium the right to build and operate a new bridge, and in return, gives them the exclusive privilege to collect tolls from vehicles crossing it for a period of 50 years to recoup their investment. If a group of individuals intentionally and repeatedly blocks the toll booths, preventing the consortium from collecting tolls, or creates an illegal, unpaid bypass lane right next to the bridge, this would be a disturbance of franchise.

  Explanation: The consortium holds the "franchise" – the exclusive, legally granted right to collect tolls for the use of their bridge. The actions of blocking toll collection or creating an illegal bypass directly interfere with the consortium's exercise of this granted right, thereby disturbing its franchise.