In many cases, business partnerships are generally between different companies and individuals. However, there are also concession agreements, which are usually agreements between the government and corporations which give the corporations the right to operate within the government’s jurisdiction. Of course, concession agreements operate under certain conditions to regulate them.
Like other agreement templates like management agreement templates, there is a measure of flexibility in concession agreements, such as what they are concerned with or what terms and incentives apply in. If you were to make your own, it would help to know about the aspects of concession agreements to be certain of making them correctly.
Model Concession Agreement
Facility Concession Agreement
Retail Concession Agreement
Food Concession Agreement
Concession Agreement Basics
Like a service agreement template, you would need to understand the basics of a concession agreement to be sure of making one properly. To do this, you need an awareness of some of the basic functions of these agreements:
- Defining the parties involved. This is especially important as it would need to list the government as a party in order to confirm its involvement in the agreement.
- Stating the exclusivity of the agreement. In a concession agreement, the government and a corporation or corporations agree that the corporation has the exclusive right to operate a particular business or utility.
- Allowing for early termination. These agreements also include mechanisms for the agreement to be terminated early, allowing the government to deal with the problem and find a better choice of the concessionaire.
- Being usable for retail purposes. These agreements may also be used by large facilities and small vendors which allow the vendors exclusive rights to operate on the facility’s premises.
- Delimiting the concessionaire’s privileges and obligations. As an exclusive provider, a company can also collect the revenue from the business, which it must turn over to the government for an agreed-upon fee.
Lease Concession Agreement
Standard Concession Agreement
Clean Truck Concession Agreement
Components Of Concession Agreements
All agreement templates have some elements in common, such as listing the specific parties and date. In the case of concession agreements, there are some elements unique to them that allow them to do their jobs. This is a necessity since concession agreements usually allow for elements not present in many other kinds of agreements.
- Parties, since every agreement does need to list all the parties involved in an agreement. In the case of concession agreements, you would need to specify any government agencies that are involved in the agreement.
- Asset transfers, as the agreement needs to specify how all the necessary assets are to be secured in order to fulfill the agreement. For example, if the property is involved in the agreement, then it would be necessary to secure it for the duration of the concession agreement.
- Risk assessment, which is necessary to properly list all the risks involved with carrying out the project, including political, financial, and operational risks. The agreement also does have to clearly state who bears the risk, which is usually the concessionaire.
- Clauses, which serve to protect the concessionaire and its ability to carry out its obligations. Changes clauses protect the concessionaire’s ability to operate in case of political changes in the future, while non-compete clauses prevent other competing projects from interfering with the concessionaire’s within a particular period.