- (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) 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.
(c) 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.
Source Note:The provisions of this §59.106 adopted to be effective January 2, 1997, 21 TexReg 12421.