Section 59.105 - Leased Concession Contract Terms(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.31 Tex. Admin. Code § 59.105
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 by Texas Register, Volume 41, Number 15, April 8, 2016, TexReg 2597, eff. 4/10/2016