Passenger rail franchising in Great Britain was the system of contracting the operation of the passenger services on the railways of Great Britain to private companies, which was in effect from 1996 before being greatly altered in 2020, and effectively abolished in May 2021. In 2024 rail franchising was formally abolished, with rail contracts set to enter government control at the expiration of their contracts from 2025 onwards.
The system was created as part of the privatisation of British Rail, the former state-owned railway operator, and involved franchises being awarded by the government to train operating companies (TOCs) through a process of competitive tendering. Franchises usually lasted for a minimum of seven years and covered a defined geographic area or service type; by design, franchises were not awarded on an exclusive basis, and day-to-day competition with other franchises and open access operators was possible, albeit occurring on a limited number of services. Over the years, the system evolved, most notably reducing the initial 25 franchises to 17 through a series of mergers. As of October 2025, ten franchises are in public ownership under the DfT Operator with five more to follow in 2026, as more passenger services are gradually renationalised.
