Attachment_A.pdf

This document is Attachment A for a proposed percentage concession fee structure, which outlines a tiered method for calculating fees based on annual gross receipts. The attachment provides a template for defining percentage rates across three revenue brackets: a percentage for annual gross receipts up to a certain dollar amount, a percentage for gross receipts exceeding that initial amount and up to a second threshold, and a percentage for gross receipts exceeding the second threshold. The specific dollar amounts and corresponding percentage rates are left blank, indicating that these details would be filled in during the contract negotiation or bidding process.

The fee structure suggests a graduated approach to revenue sharing, where different percentages apply at different levels of gross receipts. This type of pricing model is commonly used in concession agreements, such as those for food service, retail, or other commercial operations in public spaces like airports, stadiums, or government facilities. The tiered approach incentivizes higher revenue generation by potentially offering more favorable percentage rates as gross receipts increase, which can be attractive to both the service provider and the contracting entity.