(a) Franchise fee rates shall be determined by the executive
director or his designee in an equitable and fair manner, giving consideration
to the various types of operations, gross receipts, net profit, and capital
invested. Single or multiple percentages applied to all or various kinds of
gross receipts will be considered in new or amended contracts.
(b) A penalty of 5.0% of the franchise fee due shall be imposed
on a leased concessionaire who fails to pay the fee as required under the
signed contractual agreement, and if that person fails to pay the fee within
30 days after the day when the fee is sue, an additional 5.0% penalty shall
be imposed.
(c) Delinquent fees accrue interest beginning on the 61st day
after their due date.
(d) The yearly interest on all delinquent franchise fees is
the prime rate plus one per cent, as published in the Wall Street Journal
on the first day of the calendar year that is not a Saturday, Sunday or a
legal holiday.
(e) The penalties and interest assessed for delinquent franchise
fees may not exceed the penalties and interest rate established in the Texas
Tax Code §111.060 and §111.061.
(f) Penalties and/or interest under this section may be waived
by the executive director for a good cause.
(g) The right to reconsider and renegotiate franchise fees
of concession contracts on an annual basis shall be considered standard practice
when conditions warrant an adjustment.
(h) The rates and charges prescribed by the concessioner shall
be subject to the approval of the executive director or his designee. The
reasonableness of the concessioner's rates and charges to the public shall
be judged primarily by comparing with current charges for facilities and services
of comparable character under similar conditions. Consideration shall be given
to:
(1) length of season;
(2) provisions for peakloads;
(3) average percentage of occupancy;
(4) accessibility;
(5) availability and costs of labor and materials;
(6) type of patronage; and
(7) other factors deemed significant as related to the type
of concession.
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