The study examined perceived effect of franchising of selected state owned mass transit in Southern Nigeria. Data was collected with the aid of structured questionnaire from 116 randomly selected respondents involved in the Mass transit system in Southern Nigeria. Data were analyzed through frequencies, and percentages. Findings revealed that franchising has affected the transport companies favourably through improving managerial effectiveness, vehicle maintenance, healthy competition, highway accessibility and improved safety. Based on the findings of the study the recommendations include the following: The franchise scheme and public private partnership should be encouraged to develop the other modes of transport especially the rail sector of the country. Since the franchise scheme has shown to be a revival strategy to the failing public transport system in the country, the scheme should be sustained as government alone cannot fund the sector. Transport companies should set a standard of vehicles to be registered with the franchise operators. This is important to ensure that standard vehicles are registered in the companies. The companies should also set a policy that will regulate the number of years the vehicles can operate at a particular route base on standard. This is to ensure prompt replacement of worn-out vehicles by new ones
