To keep with a Manchester example (although the Gateshead one is the historical classic): TfGM is already a pseudo-Verkehrsverbund. They do not need to enforce franchising to perform what sensible, well-rounded discussions could create. They could produce network, rather than individual route, timetables. They could include trams in the System One ticket range (or whatever they are called now). They could engage with the bus operators for their thoughts on fares (My knowledge is scratchy here, but don't "PTEs" count as a body that can act as an intermediary for harmonising fares?).
Perhaps if the tram was the same fare as the bus people would be more inclined to use it. That it isn't (who sets tram fares?) explains why passengers may prefer to use the bus. What is the situation with ENCTS validity on the tram?
I can't help but think if TfGM used the money it must be spending on these reports and investigations into franchising on the currently existing network (publicity, etc.), it might not require the franchising to start with...
Does TfGM control many of these prices?
In West Yorkshire the multimodal tickets are controlled by a holding company - percentages are owned by all the local bus companies and the WYCA with representatives voting on behalf of the rail companies.
WYCA has only a small proportion of the votes to set fares. All the rail and bus companies are out to get as large a share of the money as they can.
Perhaps this is why there is no daily ticket that allows travel at any time (except at weekends). There's no good reason why day train and bus tickets should not be purchasable on an NFC-enabled phone (as bus-only tickets and weekly and longer seasons are), but they're not available. Nor are they available on the bus that would be the first step on most multi-modal journeys. They're sold at just 6 locations in the county for the undated version and are not available at unstaffed stations or on trains.