I am a Hong Konger, and so in Hong Kong bus fan's context:
A franchised bus service is a REGULAR bus services sanctioned by
the government transportation authorities (such as LTA); and are
listed on the public transport guides (such as the TL guides)
regularly.
The government would take some tax, known as franchise tax in
return.
AT ANY GIVEN TIME, only ONE bus company would operate a batch of
franchised services (such as 60 for SBST, 61 for SMRTB) unless
there were stipulations or rationalizations (the transfer of
operating rights.)
Also, there would be regular stated scheduling, fares and service
quality, as compared against the 6xx buses in Singapore (the
scheme-Bs).
