Issue with franchising, particularly nowadays, is who pays for it? Even the private operators 'high earners' are not offsetting the loss makers.
Bus operators are not making huge profits, even looking at recent accounts from most that are available, the government funding is basically bailing them out as an overall financial entity.

Like it or not, franchising is the likely option for the new LA7 Mayor, but if they want the network the same as it was in 2019, unfortunately, that will cost the local taxpayer tens of millions a year (either directly or cuts to other essential services). Most political stand points on this are clearly to win the votes (and they will given the current government performance), however they haven't been financially appraised and I suspect the promise may not be fulfilled completely.

Based on Ben Maxfield's comments recently when asked about this exact thing, is that most operators are actually warming to the idea of a guaranteed income and margin, so I don't think you will see the legal fight that was saw when Nexus tried to do it. A franchised bus operation is likely going to be the norm for most of the country, come 2030.