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Legal Definitions - ferry franchise

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Definition of ferry franchise

A ferry franchise refers to a special legal right or privilege granted by a government or public authority to an individual or company, allowing them to operate a ferry service over a specific route or waterway. This grant typically involves a formal agreement, often for a set period, and may include conditions regarding service frequency, fares, safety standards, and sometimes a degree of exclusivity to prevent competition on that particular route. The purpose of a ferry franchise is to ensure reliable public transportation, regulate services, and manage the use of public waterways.

  • Example 1: The state Department of Transportation issues a contract to "Coastal Connect Ferries LLC" to operate a passenger and vehicle ferry service between two remote islands and the mainland. The contract specifies the minimum number of daily sailings, maximum allowable fares, and environmental compliance standards for a 20-year period.

    Explanation: This scenario illustrates a ferry franchise because the state, acting as a public authority, has granted Coastal Connect Ferries LLC the exclusive right to operate a ferry service on a defined route under specific terms and conditions, ensuring essential transportation for the island communities.

  • Example 2: In the early 1900s, the municipal council of Portside granted a local entrepreneur, Ms. Eleanor Vance, the sole right to operate a small ferry across the Portside Narrows, connecting the town center with the growing industrial district. Her agreement stipulated that she must operate from dawn until dusk and maintain a safe vessel, in exchange for collecting a set fare from passengers.

    Explanation: Ms. Vance received a ferry franchise from the municipal council. This gave her the authorized privilege to run a ferry service on that specific waterway crossing, allowing her to charge a toll while obligating her to provide a necessary public service under regulated conditions.

  • Example 3: To reduce bridge traffic, the City of Lakeside issues a Request for Proposals (RFP) for a private company to establish and operate a new commuter ferry route across Lake Serene. The RFP outlines requirements for vessel capacity, accessibility features, and a 10-year operating term with an option for renewal, granting the selected company the exclusive right to serve that route.

    Explanation: The city is offering a ferry franchise. By granting a private company the exclusive right to operate a ferry on this new commuter route under specific terms and conditions, they are establishing a regulated public transportation service through a formal agreement, which is the core concept of a ferry franchise.

Simple Definition

A ferry franchise is a special privilege granted by a government or public authority. It confers upon an individual or company the exclusive right to operate a ferry service over a designated route or within a specific geographical area.

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