Public and private entities are often involved in business agreements. A contract agreement between these entities include lease agreements, management agreements and concession agreements. A concession agreement differs from those aforementioned when it comes to the rights being assigned to the private entity which is similar to a representation agreement.
In this regard, the responsibility is passed on from the public entity to the private entity to provide to the public consumers the services needed for their daily consumption. These concession agreement templates will provide the information as to the features of the agreement as well as the agreement format applicable for different purposes.
Food Concession Agreement
What Is a Concession Agreement?
A concession agreement is a written legal agreement between the government and the private business entity that permits the entity to operate and to provide for a particular public utility. This agreement is different from a mortgage loan agreement as the rights being granted to the private business entity does not entail prerequisite of a loan.
Another description of a concession agreement applies to private entities joining into an agreement that one party will share a percentage of revenue to the owner of the property he is operating with. The sample agreement template on this website shows standard formats on concession agreements of public and private entities.
Key Features in a Concession Agreement
A concession agreement is created with the following key features as evident on the concession agreement templates provided on this website:
- The concessionaire is given the rights to operate a property. The private entity which is called the concessionaire is granted responsibility on a property. The scope of the responsibility not only pertains to operation and maintenance, but also in relation to financing and managing the property.
- The consumers involve the general public. The revenue is taken from the purchasing consumers which is the general public. Most of the concession agreements are created for the purpose of providing public utility such as water, electricity, and energy.
- The agreement lasts for a period. The agreement usually lasts for a period of 25 to 30 years to cover amortization of the property investment. Confidentiality clauses as shown on confidentiality agreement templates may apply on a concession agreement within the given period.
Most Common Types of Concession Agreements
A concession agreement is an agreement of the granting of rights from one entity to another. Here are the most common types of concession agreements as presented on the templates of this website:
- Public Utility Concession Agreements – One common type of concession agreement which focuses on the services to be rendered is the concessions on public utility being granted by the government to a private entity. Public utility includes railroads, water, energy, and infrastructure. Maintenance of the property being operated on is provided for by the operating business entity.
- Retail Concession Agreements – A private entity holding operations within a facility such as airports and state parks involves agreement on fees, revenue shares and operation length similar to a lease agreement template. Stipulations on who will be responsible for the maintenance is indicated along with the agreed terms of the concession agreement.
The provisions on the concession agreement must conform to the required services to satisfy not only the interests of the entities but also the consumers the general public. Different formats are presented on the concession agreement templates provided on this website applicable to various concession purposes. These templates are available and downloadable for your perusal.