said by Matt3:
The franchising authority can add whatever stipulations into the franchise agreement they want. That is the same effect as regulation.
The franchising authority's authority was created in the first place by the FCC. Any attempt by a local or state government to regulate something reserved to federal jurisdiction will quickly result in a cable company running to a federal judge and get instant strike down by a federal judge as the state or local government exceeded its scope/standing. States tried to regulate cellphone provider prices, plans, etc, ILEC style in the late 1980s, instant lawsuit, instant block by judge and jurisprudence that only the FCC can regulate cellphone providers, and states can only regulate it through commercial code or consumer protection code, not PUC code.