| (a) All contracts shall be executed for a term commensurate
with the size of the total investment required of the concessioner.
The duration of a contract shall be set for a period of time to allow
for a reasonable opportunity for return on investment.
(b) 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 may be considered in new
or amended contracts.
(c) The penalties and interest assessed for delinquent
franchise fees shall be stated in the contract, but may not exceed
the penalties and interest rate established in the Texas Tax Code §111.060
and §111.061.
(d) Penalties and/or interest under this section may
be waived by the executive director or designee for good cause.
(e) The rates and charges prescribed by the concessioner
shall be subject to the approval of the executive director or 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 factors deemed relevant
to the type of concession, location, and business conditions.
(f) No renewal rights shall be made a part of any concession
contract.
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| Source Note: The provisions of this §59.105 adopted to be effective January 2, 1997, 21 TexReg 12421; amended to be effective April 23, 2001, 26 TexReg 3024; amended to be effective April 6, 2006, 31 TexReg 2867; amended to be effective April 10, 2016, 41 TexReg 2593 |
