Rail Franchising in the United Kingdom

The system was created in the 1990s as part of the privatisation of British Rail, the former state owned railway operator, and involves franchises being awarded by the government to train operating companies (TOCs) through a process of competitive tendering. Franchises usually last for a minimum of seven years and cover a defined geographic area or service type; by design, franchises are not awarded on an exclusive basis, and day-to-day competition with other franchises and open access operators is possible, albeit occurring on a limited number of services. Over the years, the system has evolved, most notably reducing the initial total of 25 franchises down to 17 through a series of mergers, but it still continues to be the main form of passenger rail service provision in terms of route miles. A limited number of urban services are privately run, but are awarded by the local authority.

The system only covers the railways of Great Britain (and the Isle of Wight); the railways in Northern Ireland are owned and operated by the state-owned company NI Railways.