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Pages 15-29

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From page 15... ... Many contractual changes have been made as airport managers seek to increase concession revenues while optimizing use of land and facilities. Critical issues in concession agreements are as follows: • Financial terms – Rent structures – Defining gross revenues – Solicitation – Term – Improvements provided by airport – Improvements provided by concessionaire – Monthly reporting – Audit • Service and operational terms – Exclusivity of concession rights granted – Hours of operation – Personnel and on-site manager requirements – Street pricing – Maintenance of and title to improvements – Recapture or relocation of premises – Materials handling 2.1 Financial Terms Airports receive a significant amount of rent revenue and other fees from concessions. Read the entire page →
From page 16... ... See CRP-CD-81 (enclosed herein) , Appendix to Chapter 2, Concession Agreements, for an excerpt from the OAK concession agreement for a description of minimum guarantee and percentage rent and an excerpt from the DFW concession agreement template for an example of concession rents. Read the entire page →
From page 17... ... See CRP-CD-81 (enclosed herein) , Appendix to Chapter 2, Concession Agreements, for an excerpt from the DFW Concession Agreement template. Read the entire page →
From page 18... ... , Appendix to Chapter 2, Concession Agreements, for an excerpt from the PVD concession agreement requiring refurbishment of the premises annually commencing during the midpoint of the agreement. Under some car rental agreements, the car rental company will construct the ready/return area and/or the service center. Read the entire page →
From page 19... ... The percentage rents and other concession 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) Read the entire page →
From page 20... ... See CRP-CD-81 (enclosed herein) , Appendix to Chapter 2, Concession Agreements, for an excerpt from the MSP Concessions General Terms & Conditions and DFW Concessions Agreement Template. Read the entire page →
From page 21... ... , Appendix to Chapter 2, Concession Agreements, for excerpts from the PHX and BNA concessions agreements regarding approvals of menus and pricing. Pricing language may also require a statement of policy on employee discounts. Read the entire page →
From page 22... ... See CRP-CD-81 (enclosed herein) , Appendix to Chapter 2, Concession Agreements, for an excerpt from the MSP Concessions General Terms & Conditions. Read the entire page →
From page 23... ... , Appendix to Chapter 2, Concession Agreements, for an excerpt from the SFO Concessions Agreement. 2.3.6 Maintenance of Kitchen Equipment Maintenance of kitchen equipment is not a topic traditionally encountered in food service concession agreements. Read the entire page →
From page 24... ... Concession agreements for carts and kiosks typically have a shorter term, reflecting the reduced investment and different rental structures to reflect the margins. Similarly, concession agreements for these types of operations typically will need provisions for flexibility in changing out product mix with airport approval in order to adjust to changing market preferences. Read the entire page →
From page 25... ... , Appendix to Chapter 2, Concession Agreements, for excerpts from the OAK parking management services agreement which includes a detailed description of valet parking services. 2.7 Rental Cars Additional Issues for rental car concessions • Location of operations • Definition of gross revenues • Definition and calculation of MAG • Definition of transaction days • Credit card acceptance • Dual branding privileges • DBE requirements • Valet, pick-up, drop-off restrictions • Vehicle sales • Pass-through of concession fees • Space leases • Consolidated facilities • CFC calculation and customer presentation • Shuttle bus operations • Employee parking • Performance security • Underground storage tanks • Environmental conservation Concession Agreements 25 Read the entire page →
From page 26... ... , Appendix to Chapter 2, Concession Agreements, for excerpts from the IAH Car Rental Agreement for definition of gross revenues. 2.7.3 Definition and Calculation of MAG The MAG is the minimum amount the car rental operator must pay to the airport. Read the entire page →
From page 27... ... See CRP-CD-81 (enclosed herein) , Appendix to Chapter 2, Concession Agreements, for excerpts from the IAH Car Rental Agreement concerning credit card acceptance. Read the entire page →
From page 28... ... See CRP-CD-81 (enclosed herein) , Appendix to Chapter 2, Concession Agreements, for excerpts from the IAH Car Rental Agreement. Read the entire page →
From page 29... ... , Appendix to Chapter 2, Concession Agreements, for excerpts from the IAH agreement concerning performance security. 2.7.17 Underground Storage Tanks Car rental operators may require fuel storage tanks at the Quick-Turnaround Area and/or the Service Centers. Read the entire page →

From page 15...

... Many contractual changes have been made as airport managers seek to increase concession revenues while optimizing use of land and facilities. Critical issues in concession agreements are as follows: • Financial terms – Rent structures – Defining gross revenues – Solicitation – Term – Improvements provided by airport – Improvements provided by concessionaire – Monthly reporting – Audit • Service and operational terms – Exclusivity of concession rights granted – Hours of operation – Personnel and on-site manager requirements – Street pricing – Maintenance of and title to improvements – Recapture or relocation of premises – Materials handling 2.1 Financial Terms Airports receive a significant amount of rent revenue and other fees from concessions.