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Concession Agreements 19 2.1.9 Audit All concession agreements should include provisions which permit the review of all books, and applicable records to substantiate the accuracy of the sales and other information reported to the airport. Typically these provisions also require the concessionaire to pay the expenses of the audit if underpaid fees are more than a specified percentage. See CRP-CD-81 (enclosed herein), Appendix to Chapter 2, Concession Agreements, for an excerpt from the DFW concession lease agreement regarding the right to audit for up to 3 years after expiration or termination of the lease. 2.2 Service and Operational Terms 2.2.1 Exclusivity of Concession Rights Granted Car rental operators are not granted exclusive rights. Until the 1990s, other terminal conces- sions had sometimes been granted exclusivity but that is now a rare practice at large or medium hub airports. 2.2.2 Hours of Operation Hours of operation should match airline operations. Ideally, terminal concessions should be open prior to first departure. The final arrival and final departure should govern how late conces- sions are open, with landside concessions being open until either the last departure or last arrival's bags are on a bag claim belt. This should be specified in the contract, and monitored monthly for revisions. 2.2.3 Personnel and On-Site Manager Requirements Qualified, on-site, professional management must be required in the terms of the agreement. See CRP-CD-81 (enclosed herein), Appendix to Chapter 2, Concession Agreements, for an excerpt from the MSP Concessions General Terms & Conditions. 2.2.4 Street Pricing Terminal retail concessions are operated under various street pricing assumptions. Agreements at U.S. airports have pricing policies ranging from strict street pricing to street plus an additional 5 to 10%. Other agreements do not restrict pricing at all. Pricing policy is a major determinant in establishing rent and term lengths, because it greatly affects expected revenues in the pro forma income statement. Airports are encouraged to establish the most competitive pricing policy pos- sible that will still allow them to achieve their goals for revenue and customer service. Most car rental agreements do not address the issue of street pricing. The percentage rents and other con- cession fees may require the car rental companies to price airport rentals higher than off-airport which is why most airport car rental agreements are silent on this subject. See CRP-CD-81 (enclosed herein), Appendix to Chapter 2, Concession Agreements, for the RDU Concessions Pricing Policy 2009. 2.2.5 Maintenance of and Title to Improvements Maintenance arrangements between airports and terminal concessions tenants are becoming more specific, because these responsibilities had been the source of uncertainty in the past.