Common use of Standards of Operation Clause in Contracts

Standards of Operation. Section 6.01 Products and Pricing A. Concessionaire has caused to be attached hereto as Exhibit "B" a complete listing of all goods, menu items and/or services Concessionaire is allowed to sell from the Premises as well as the prices to be charged to the public. The execution of this Lease constitutes acceptance by the Board of the merchandise, services and pricing as reflected on the referenced exhibit. B. Concessionaire shall not add, delete or sell merchandise categories, menu items and/or services not reflected on the aforesaid exhibit without first receiving written approval from the Airport Concessions Department, which shall not be unreasonably withheld or delayed. It is agreed that in the event of any conflict between Concessionaire and another lessee as to specific items sold, the Board or its designee shall have the sole authority to resolve the conflict as it deems appropriate. Concessionaire shall provide for the sale of any additional merchandise or the furnishing of any additional service as directed by the Airport Concessions Department. Prices must be visibly displayed to customers for all products. C. If Concessionaire offers merchandise promoting the City of Dallas or Fort Worth, or promoting tourist attractions in either city, then Concessionaire shall offer merchandise promoting both such cities and their respective tourist attractions, as instructed by the Airport Concessions Department in its reasonable discretion. D. Concessionaire further understands the Board's objective to limit the prices charged for products and services sold to the public at the Airport to no more than ten (10) percent above "street level pricing" (the off- Airport prices charged for comparable products and services). Accordingly, Concessionaire warrants and represents that Concessionaire, its employees, successors and assigns, if any, will adhere to the following: 1. Prices charged at the Premises for each item of products and services shall be no more than ten percent (10%) higher than comparable products or services sold outside the Airport. The Concessions Department shall have the discretion to define what constitutes an individual item sold, including without limitation combinations or bundling of items. 2. In determining which products and services off-Airport are to be used for street-level pricing comparisons, the parties agree that if Concessionaire owns or operates a similar business selling like products or services to the public within twenty (20) miles of the Airport, then prices at said business (other than non-traditional venues) shall be deemed comparable. If Concessionaire owns or operates more than one (1) similar business selling like products or services to the public within twenty (20) miles of the Airport, then the average of a minimum of three (3) locations’ prices for each such product or service shall be deemed comparable. The Concessions Department shall have the discretion to determine whether Concessionaire's off-Airport businesses are similar and whether particular products or services are alike. If Concessionaire does not own or operate a similar business selling like products or services to the public within twenty (20) miles of the Airport, then the parties agree to use comparisons from other off-Airport businesses. 3. Upon receiving TCO (Temporary Certificate of Occupancy) and on April 1st of each year thereafter, Concessionaire shall provide an updated merchandise list with current prices and shall provide the Concessions Department names and addresses of local area businesses that Concessionaire believes to be comparable, together with the specific products and services that Concessionaire believes to be comparable. However, the Concessions Department shall have the discretion to reject said suggestions from Concessionaire and to select other businesses and other products and services. Prices from non- traditional venues, such as amusement parks, other entertainment venues, stadiums, other airports, hotels, hospitals, and zoos shall not be acceptable for use in establishing street-level pricing-regardless of whether the Concessionaire owns or operates such businesses. 4. The Concessions Department may at its discretion require Concessionaire to submit documentation verifying compliance with the street-level pricing requirements herein. The Board may require Concessionaire to submit their price comparison using an automated process method. If Concessionaire fails to submit said documentation of compliance within the time specified by Board, or if documentation submitted is erroneous, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. 5. The Concessions Department may at any time compel Concessionaire to lower prices within two (2) business days on specific items to bring them into compliance with street-level pricing, but nothing herein shall negate the general default and remedies provisions of this Lease. 6. The Concessions Department may grant any exemption(s) from street-level pricing but any such exception or determination must be in writing and signed by the Vice President of Concessions, and under no circumstances shall Concessionaire be entitled to any such exemption. 7. If Concessionaire is required by this Lease to participate in product exclusivity contracts made by Board, said exclusivity contracts may include minimum or maximum prices that shall be binding on Concessionaire notwithstanding any higher price allowed or lower price required by the street-level pricing provisions herein. E. At any time during the Term hereof the Board may make or cause to be made a survey of prices being charged for products or services offered by Concessionaire from the Premises hereunder. If the survey concludes that any prices being charged by Concessionaire on the Premises are not in accordance with the terms of this Lease, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. F. Failure to comply with the provisions of this section shall constitute a material default. If Concessionaire, after receiving notice to reduce prices and/or application of any penalty is later found to have again violated the street level pricing policy within the Fiscal Year, the Board shall have the right to collect a Non- Compliance Fee per the Schedule of Charges and/or terminate this Lease for cause by giving thirty (30) days written notice. Failure of the Board to exercise its right to terminate this Lease shall not constitute a waiver of the Board's right to terminate at a later date for the same, similar or continued violation of the street level pricing policy.

Appears in 2 contracts

Sources: Concession Lease Agreement, Concession Lease Agreement

Standards of Operation. Section 6.01 Products and Pricing A. Concessionaire has caused to be attached hereto as Exhibit "B" a complete listing of all goods, menu items and/or services Concessionaire is allowed to sell from the Premises as well as the prices to be charged to the public. The execution of this Lease constitutes acceptance by the Board of the merchandise, services services, and pricing as reflected on the referenced exhibit. B. Concessionaire shall not add, delete or sell merchandise categories, menu items and/or services not reflected on the aforesaid exhibit without first receiving written approval from the Airport Concessions Department, which shall not be unreasonably withheld or delayed. It is agreed that in the event of any conflict between Concessionaire and another lessee as to specific items sold, the Board or its designee shall have the sole authority to resolve the conflict as it deems appropriate. Concessionaire shall provide for the sale of any additional merchandise or the furnishing of any additional service as directed by the Airport Concessions Department. Prices must be visibly displayed to customers for all products. C. If Concessionaire offers merchandise promoting the City of Dallas or Fort Worth, Worth or promoting tourist attractions in either city, then Concessionaire shall offer merchandise promoting both such cities and their respective tourist attractions, as instructed by the Airport Concessions Department in its reasonable discretion. D. Concessionaire further understands shall comply with one or more of the Board's objective pricing models listed below. The pricing model(s) applicable to limit this Lease shall be selected by the prices charged for Board and communicated to Concessionaire. The DFW bottled beverage price ceiling shall always apply, regardless of the pricing model selected. 1. Airport Brands (concessions located exclusively at airports). Concessionaire shall price its products and services sold to at or below the public average price charged at other U.S. airports for the same product or service. To determine the average price charged for a product or service, Concessionaire shall use pricing from same- brand concessions at the Airport to no more than ten (10) percent above "street level pricing" (the off- Airport prices charged for comparable products and services). Accordingly, Concessionaire warrants and represents that Concessionaire, its employees, successors and assigns, if any, will adhere to the following: 1. Prices charged at the Premises for each item of products and services shall be no more than ten percent (10%) higher than comparable products or services sold outside the Airport. The Concessions Department shall have the discretion to define what constitutes an individual item sold, including without limitation combinations or bundling of items. 2. In determining which products and services off-Airport are to be used for street-level pricing comparisons, the parties agree that if Concessionaire owns or operates a similar business selling like products or services to the public within twenty (20) miles of the Airport, then prices at said business three U.S. airports (other than non-traditional venuesDFW) shall be deemed comparable. If Concessionaire owns or operates more than one (1) most similar business selling like products or services in passenger volume to the public within twenty (20) miles of the Airport, then the average of a minimum of three (3) locations’ prices for each such product or service shall be deemed comparable. The Concessions Department shall have the discretion to determine whether Concessionaire's off-Airport businesses are similar and whether particular products or services are alike. If Concessionaire does not own or operate a similar business selling like products or services to the public within twenty (20) miles of the Airport, then the parties agree to use comparisons from other off-Airport businessesDFW. 3. Upon receiving TCO (Temporary Certificate of Occupancy) and on April 1st of each year thereafter, Concessionaire shall provide an updated merchandise list with current prices and shall provide the Concessions Department names and addresses of local area businesses that Concessionaire believes to be comparable, together with the specific products and services that Concessionaire believes to be comparable. However, the Concessions Department shall have the discretion to reject said suggestions from Concessionaire and to select other businesses and other products and services. Prices from non- traditional venues, such as amusement parks, other entertainment venues, stadiums, other airports, hotels, hospitals, and zoos shall not be acceptable for use in establishing street-level pricing-regardless of whether the Concessionaire owns or operates such businesses. 4. The Concessions Department may at its discretion require Concessionaire to submit documentation verifying compliance with the street-level pricing requirements herein. The Board may require Concessionaire to submit their price comparison using an automated process method. If Concessionaire fails to submit said documentation of compliance within the time specified by Board, or if documentation submitted is erroneous, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. 5. The Concessions Department may at any time compel Concessionaire to lower prices within two (2) business days on specific items to bring them into compliance with street-level pricing, but nothing herein shall negate the general default and remedies provisions of this Lease. 6. The Concessions Department may grant any exemption(s) from street-level pricing but any such exception or determination must be in writing and signed by the Vice President of Concessions, and under no circumstances shall Concessionaire be entitled to any such exemption. 7. If Concessionaire is required by this Lease to participate in product exclusivity contracts made by Board, said exclusivity contracts may include minimum or maximum prices that shall be binding on Concessionaire notwithstanding any higher price allowed or lower price required by the street-level pricing provisions herein. E. At any time during the Term hereof the Board may make or cause to be made a survey of prices being charged for products or services offered by Concessionaire from the Premises hereunder. If the survey concludes that any prices being charged by Concessionaire on the Premises are not in accordance with the terms of this Lease, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. F. Failure to comply with the provisions of this section shall constitute a material default. If Concessionaire, after receiving notice to reduce prices and/or application of any penalty is later found to have again violated the street level pricing policy within the Fiscal Year, the Board shall have the right to collect a Non- Compliance Fee per the Schedule of Charges and/or terminate this Lease for cause by giving thirty (30) days written notice. Failure of the Board to exercise its right to terminate this Lease shall not constitute a waiver of the Board's right to terminate at a later date for the same, similar or continued violation of the street level pricing policy.

Appears in 2 contracts

Sources: Concession Lease Agreement, Concession Lease Agreement

Standards of Operation. Section 6.01 Products and Pricing A. Concessionaire has caused to be attached hereto as Exhibit "B" a complete listing of all goods, menu items and/or services Concessionaire is allowed to sell from the Premises as well as the prices to be charged to the public. The execution of this Lease constitutes acceptance by the Board of the merchandise, services and pricing as reflected on the referenced exhibit. B. Concessionaire shall not add, delete or sell merchandise categories, menu items and/or services not reflected on the aforesaid exhibit without first receiving written approval from the Airport Concessions Department, which shall not be unreasonably withheld or delayed. It is agreed that in the event of any conflict between Concessionaire and another lessee as to specific items sold, the Board or its designee shall have the sole authority to resolve the conflict as it deems appropriate. Concessionaire shall provide for the sale of any additional merchandise or the furnishing of any additional service as directed by the Airport Concessions Department. Prices must be visibly displayed to customers for all products. C. If Concessionaire offers merchandise promoting the City of Dallas or Fort Worth, or promoting tourist attractions in either city, then Concessionaire shall offer merchandise promoting both such cities and their respective tourist attractions, as instructed by the Airport Concessions Department in its reasonable discretion. D. Concessionaire further understands the Board's objective to limit the prices charged for products and services sold to the public at the Airport to no more than ten (10) percent above "street level pricing" (the off- off-Airport prices charged for comparable products and services). Accordingly, Concessionaire warrants and represents that Concessionaire, its employees, successors and assigns, if any, will adhere to the following: 1. Prices charged at the Premises for each item of products and services shall be no more than ten percent (10%) higher than comparable products or services sold outside the Airport. The Concessions Department shall have the discretion to define what constitutes an individual item sold, including without limitation combinations or bundling of items. 2. In determining which products and services off-Airport are to be used for street-level pricing comparisons, the parties agree that if Concessionaire owns or operates a similar business selling like products or services to the public within twenty (20) miles of the Airport, then prices at said business (other than non-traditional venues) shall be deemed comparable. If Concessionaire owns or operates more than one (1) similar business selling like products or services to the public within twenty (20) miles of the Airport, then the average of a minimum of three (3) locations’ prices for each such product or service shall be deemed comparable. The Concessions Department shall have the discretion to determine whether Concessionaire's off-Airport businesses are similar and whether particular products or services are alike. If Concessionaire does not own or operate a similar business selling like products or services to the public within twenty (20) miles of the Airport, then the parties agree to use comparisons from other off-Airport businesses. 3. Upon receiving TCO (Temporary Certificate of Occupancy) and on April 1st of each year thereafter, Concessionaire shall provide an updated merchandise list with current prices and shall provide the Concessions Department names and addresses of local area businesses that Concessionaire believes to be comparable, together with the specific products and services that Concessionaire believes to be comparable. However, the Concessions Department shall have the discretion to reject said suggestions from Concessionaire and to select other businesses and other products and services. Prices from non- traditional venues, such as amusement parks, other entertainment venues, stadiums, other airports, hotels, hospitals, and zoos shall not be acceptable for use in establishing street-level pricing-regardless of whether the Concessionaire owns or operates such businesses. 4. The Concessions Department may at its discretion require Concessionaire to submit documentation verifying compliance with the street-level pricing requirements herein. The Board may require Concessionaire to submit their price comparison using an automated process method. If Concessionaire fails to submit said documentation of compliance within the time specified by Board, or if documentation submitted is erroneous, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. 5. The Concessions Department may at any time compel Concessionaire to lower prices within two (2) business days on specific items to bring them into compliance with street-level pricing, but nothing herein shall negate the general default and remedies provisions of this Lease. 6. The Concessions Department may grant any exemption(s) from street-level pricing but any such exception or determination must be in writing and signed by the Vice President of Concessions, and under no circumstances shall Concessionaire be entitled to any such exemption. 7. If Concessionaire is required by this Lease to participate in product exclusivity contracts made by Board, said exclusivity contracts may include minimum or maximum prices that shall be binding on Concessionaire notwithstanding any higher price allowed or lower price required by the street-level pricing provisions herein. E. At any time during the Term hereof the Board may make or cause to be made a survey of prices being charged for products or services offered by Concessionaire from the Premises hereunder. If the survey concludes that any prices being charged by Concessionaire on the Premises are not in accordance with the terms of this Lease, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. F. Failure to comply with the provisions of this section shall constitute a material default. If Concessionaire, after receiving notice to reduce prices and/or application of any penalty is later found to have again violated the street level pricing policy within the Fiscal Year, the Board shall have the right to collect a Non- Compliance Fee per the Schedule of Charges and/or terminate this Lease for cause by giving thirty (30) days written notice. Failure of the Board to exercise its right to terminate this Lease shall not constitute a waiver of the Board's right to terminate at a later date for the same, similar or continued violation of the street level pricing policy.three

Appears in 1 contract

Sources: Concessions Lease

Standards of Operation. Section 6.01 Products and Pricing A. Concessionaire has caused to be attached hereto as Exhibit "B" a complete listing of all goods, menu items and/or services Concessionaire is allowed to sell from the Premises as well as the prices to be charged to the public. The execution of this Lease constitutes acceptance by the Board of the merchandise, services and pricing as reflected on the referenced exhibit. B. Concessionaire shall not add, delete or sell merchandise categories, menu items and/or services not reflected on the aforesaid exhibit without first receiving written approval from the Airport Concessions Department, which shall not be unreasonably withheld or delayed. It is agreed that in the event of any conflict between Concessionaire and another lessee as to specific items sold, the Board or its designee shall have the sole authority to resolve the conflict as it deems appropriate. Concessionaire shall provide for the sale of any additional merchandise or the furnishing of any additional service as directed by the Airport Concessions Department. Prices must be visibly displayed to customers for all products. C. If Concessionaire offers merchandise promoting the City of Dallas or Fort Worth, or promoting tourist attractions in either city, then Concessionaire shall offer merchandise promoting both such cities and their respective tourist attractions, as instructed by the Airport Concessions Department in its reasonable discretion. D. Concessionaire further understands the Board's objective to limit the prices charged for products and services sold to the public at the Airport to no more than ten (10) percent above "street level pricing" (the off- Airport prices charged for comparable products and services). Accordingly, Concessionaire warrants and represents that Concessionaire, its employees, successors and assigns, if any, will adhere to the following: 1. Prices charged at the Premises for each item of products and services shall be no more than ten percent (10%) higher than comparable products or services sold outside the Airport. The Concessions Department shall have the discretion to define what constitutes an individual item sold, including without limitation combinations or bundling of items. 2. In determining which products and services off-Airport are to be used for street-level pricing comparisons, the parties agree that if Concessionaire owns or operates a similar business selling like products or services to the public within twenty (20) miles of the Airport, then prices at said business (other than non-traditional venues) shall be deemed comparable. If Concessionaire owns or operates more than one (1) similar business selling like products or services to the public within twenty (20) miles of the Airport, then the average of a minimum of three (3) locations’ prices for each such product or service shall be deemed comparable. The Concessions Department shall have the discretion to determine whether Concessionaire's off-Airport businesses are similar and whether particular products or services are alike. If Concessionaire does not own or operate a similar business selling like products or services to the public within twenty (20) miles of the Airport, then the parties agree to use comparisons from other off-Airport businesses. 3. Upon receiving TCO (Temporary Certificate of Occupancy) and on April 1st of each year thereafter, Concessionaire shall provide an updated merchandise list with current prices and shall provide the Concessions Department names and addresses of local area businesses that Concessionaire believes to be comparable, together with the specific products and services that Concessionaire believes to be comparable. However, the Concessions Department shall have the discretion to reject said suggestions from Concessionaire and to select other businesses and other products and services. Prices from non- traditional venues, such as amusement parks, other entertainment venues, stadiums, other airports, hotels, hospitals, and zoos shall not be acceptable for use in establishing street-level pricing-regardless of whether the Concessionaire owns or operates such businesses. 4. The Concessions Department may at its discretion require Concessionaire to submit documentation verifying compliance with the street-level pricing requirements herein. The Board may require Concessionaire to submit their price comparison using an automated process method. If Concessionaire fails to submit said documentation of compliance within the time specified by Board, or if documentation submitted is erroneous, Concessionaire may be charged Non Non-Compliance Fees per the Schedule of Charges. 5. The Concessions Department may at any time compel Concessionaire to lower prices within two (2) business days on specific items to bring them into compliance with street-level pricing, but nothing herein shall negate the general default and remedies provisions of this Lease. 6. The Concessions Department may grant any exemption(s) from street-level pricing pricing, but any such exception or determination must be in writing and signed by the Vice President of Concessions, and under no circumstances shall Concessionaire be entitled to any such exemption. 7. If Concessionaire is required by this Lease to participate in product exclusivity contracts made by Board, said exclusivity contracts may include minimum or maximum prices that shall be binding on Concessionaire notwithstanding any higher price allowed or lower price required by the street-level pricing provisions herein. E. At any time during the Term hereof the Board may make or cause to be made a survey of prices being charged for products or services offered by Concessionaire from the Premises hereunder. If the survey concludes that any prices being charged by Concessionaire on the Premises are not in accordance with the terms of this Lease, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. F. Failure to comply with the provisions of this section shall constitute a material default. If Concessionaire, after receiving notice to reduce prices and/or application of any penalty is later found to have again violated the street level pricing policy within the Fiscal Year, the Board shall have the right to collect a Non- Compliance Fee per the Schedule of Charges and/or terminate this Lease for cause by giving thirty (30) days written notice. Failure of the Board to exercise its right to terminate this Lease shall not constitute a waiver of the Board's right to terminate at a later date for the same, similar or continued violation of the street level pricing policy.

Appears in 1 contract

Sources: Concessions Lease

Standards of Operation. Section 6.01 Products and Pricing A. Concessionaire has caused to be attached hereto as Exhibit "B" a complete listing of all goods, menu items and/or services Concessionaire is allowed to sell from at the Premises Airport as well as the prices to be charged to the public. The execution of this Lease Agreement constitutes acceptance by the Board of the merchandise, services and pricing as reflected on the referenced exhibit. B. Concessionaire shall not add, delete or sell merchandise categories, menu items and/or services not reflected on the aforesaid exhibit without first receiving written approval from the Airport Concessions Department, which shall not be unreasonably withheld or delayed. It is agreed that in the event of any conflict between Concessionaire and another lessee as to specific items sold, the Board or its designee shall have the sole authority to resolve the conflict as it deems appropriate. Concessionaire shall provide for the sale of any additional merchandise merchandise, or the furnishing of any additional service as directed by the Airport Concessions Department. Prices must be visibly displayed to customers for all products. C. If Concessionaire offers merchandise promoting the City of Dallas or Fort Worth, or promoting tourist attractions in either city, then Concessionaire shall offer merchandise promoting both such cities and their respective tourist attractions, as instructed by the Airport Concessions Department in its reasonable discretionDepartment. D. Concessionaire further understands the Board's objective to limit the prices charged for products and services sold to the public at the Airport to no more than ten (10) percent above "street level pricing" (the off- off-Airport prices charged for comparable products and services). Accordingly, Concessionaire warrants and represents that Concessionairerepresents, its employees, successors and assigns, if any, will adhere to the following: 1. Prices Vending prices charged at the Premises Airport for each item of products and services shall be no more than ten percent (10%) higher than comparable products or services sold outside the Airport. The Concessions Department shall have the discretion to define what constitutes an individual item sold, including without limitation combinations or bundling of items. 2. In determining which products and services off-Airport are to be used for street-level pricing comparisons, the parties agree that if Concessionaire owns or operates a similar business pricing will be based on businesses selling like products or services to the public within twenty (20) miles of the Airport, then prices at said business (other than non-traditional venues) shall be deemed comparable. If Concessionaire owns or operates more than one (1) similar business selling like products or services to the public within twenty (20) miles of the Airport, then the The average of a minimum of three (3) locations' prices for each such product or service shall be deemed comparable. The Concessions Department shall have the discretion to determine whether Concessionaire's identified off-Airport businesses are similar and whether particular products or services are alike. If Concessionaire does not own or operate a similar business selling like products or services to the public within twenty (20) miles of the Airport, then the parties agree to use comparisons from other off-Airport businesses. 3. Upon receiving TCO (Temporary Certificate of Occupancy) and on April 1st of each year thereafter, Concessionaire shall provide an updated merchandise list with current prices and shall provide the Concessions Department names and addresses of local area businesses that Concessionaire believes to be comparable, together with the specific products and services that Concessionaire believes to be comparable. However, the Concessions Department shall have the discretion to reject said suggestions from Concessionaire and to select other businesses and other products and services. Prices from non- non-traditional venues, such as amusement parks, other entertainment venues, stadiums, other airports, hotels, hospitals, and zoos shall not be acceptable for use in establishing street-level pricing-regardless of whether the Concessionaire owns or operates such businesses. 4. The Concessions Department may at its discretion require Concessionaire to submit documentation verifying compliance with the street-level pricing requirements herein. The Board may require Concessionaire to submit their price comparison using an automated process method. If Concessionaire fails to submit said documentation of compliance within the time specified by the Board, or if documentation submitted is erroneous, Concessionaire may be charged Non Non-Compliance Fees per the Schedule of Charges. 5. The Concessions Department may at any time compel Concessionaire to lower vending prices within two (2) business days on specific items to bring them into compliance with street-level pricing, but nothing herein shall negate the general default and remedies provisions of this LeaseAgreement. 6. The Concessions Department may grant any exemption(s) from street-level pricing pricing, but any such exception or determination must be in writing and signed by the Vice President of Concessions, and under no circumstances shall Concessionaire be entitled to any such exemption. 7. If Concessionaire is required by this Lease to participate in product exclusivity contracts made by Board, said exclusivity contracts may include minimum or maximum prices that shall be binding on Concessionaire notwithstanding any higher price allowed or lower price required by the street-level pricing provisions herein. E. At any time during the Term hereof the Board may make or cause to be made a survey of prices being charged for products or services offered by Concessionaire from the Premises hereunder. If the survey concludes that any prices being charged by Concessionaire on the Premises are not in accordance with the terms of this LeaseAgreement, Concessionaire may be charged Non Non-Compliance Fees per the Schedule of Charges. F. Failure to comply with the provisions of this section shall constitute a material default. If Concessionaire, after receiving notice to reduce prices and/or application of any penalty is later found to have again violated the street level pricing policy within the Fiscal Year, the Board shall have the right to collect a Non- Non-Compliance Fee per the Schedule of Charges and/or terminate this Lease Agreement for cause by giving thirty (30) days written notice. Failure of the Board to exercise its right to terminate this Lease Agreement shall not constitute a waiver of the Board's right to terminate at a later date for the same, similar or continued violation of the street level pricing policy.

Appears in 1 contract

Sources: Retail Vending Agreement

Standards of Operation. Section 6.01 Products and Pricing A. Concessionaire has caused to be attached hereto as Exhibit "B" a complete listing of all goods, menu items and/or services Concessionaire is allowed to sell from the Premises as well as the prices to be charged to the public. The execution of this Lease constitutes acceptance by the Board of the merchandise, services services, and pricing as reflected on the referenced exhibit.. All locations serving food shall offer an employee menu consisting of entrée and beverage or minimum discount of 15%, all other locations, including retail and services, shall offer a minimum of 10% employee discount. During the Term of this Agreement the Airport reserves the right to implement additional initiatives and Concessionaire will use commercially reasonable efforts to accommodate these initiatives as set forth in the Concessionaire Handbook B. Concessionaire shall not add, delete or sell merchandise categories, menu items and/or services not reflected on the aforesaid exhibit without first receiving written approval from the Airport Concessions Department, which shall not be unreasonably withheld or delayed. It is agreed that in the event of any conflict between Concessionaire and another lessee as to specific items sold, the Board or its designee shall have the sole authority to resolve the conflict as it deems appropriate. Concessionaire shall provide for the sale of any additional merchandise or the furnishing of any additional service as directed by the Airport Concessions Department. Prices must be visibly displayed to customers for all products. C. If Concessionaire offers merchandise promoting the City of Dallas or Fort Worth, Worth or promoting tourist attractions in either city, then Concessionaire shall offer merchandise promoting both such cities and their respective tourist attractions, as instructed by the Airport Concessions Department in its reasonable discretion. D. Concessionaire further understands shall comply with one or more of the Board's objective pricing models listed below. The pricing model(s) applicable to limit this Lease shall be selected by the prices charged for Board and communicated to Concessionaire. The DFW bottled beverage price ceiling shall always apply, regardless of the pricing model selected. 1. Airport Brands (concessions located exclusively at airports). Concessionaire shall price its products and services sold to at or below the public average price charged at other U.S. airports for the same product or service. To determine the average price charged for a product or service, Concessionaire shall use pricing from same- brand concessions at the Airport to no more than ten (10) percent above "street level pricing" (the off- Airport prices charged for comparable products and services). Accordingly, Concessionaire warrants and represents that Concessionaire, its employees, successors and assigns, if any, will adhere to the following: 1. Prices charged at the Premises for each item of products and services shall be no more than ten percent (10%) higher than comparable products or services sold outside the Airport. The Concessions Department shall have the discretion to define what constitutes an individual item sold, including without limitation combinations or bundling of items. 2. In determining which products and services off-Airport are to be used for street-level pricing comparisons, the parties agree that if Concessionaire owns or operates a similar business selling like products or services to the public within twenty (20) miles of the Airport, then prices at said business three U.S. airports (other than non-traditional venuesDFW) shall be deemed comparable. If Concessionaire owns or operates more than one (1) most similar business selling like products or services in passenger volume to the public within twenty (20) miles of the Airport, then the average of a minimum of three (3) locations’ prices for each such product or service shall be deemed comparable. The Concessions Department shall have the discretion to determine whether Concessionaire's off-Airport businesses are similar and whether particular products or services are alike. If Concessionaire does not own or operate a similar business selling like products or services to the public within twenty (20) miles of the Airport, then the parties agree to use comparisons from other off-Airport businessesDFW. 3. Upon receiving TCO (Temporary Certificate of Occupancy) and on April 1st of each year thereafter, Concessionaire shall provide an updated merchandise list with current prices and shall provide the Concessions Department names and addresses of local area businesses that Concessionaire believes to be comparable, together with the specific products and services that Concessionaire believes to be comparable. However, the Concessions Department shall have the discretion to reject said suggestions from Concessionaire and to select other businesses and other products and services. Prices from non- traditional venues, such as amusement parks, other entertainment venues, stadiums, other airports, hotels, hospitals, and zoos shall not be acceptable for use in establishing street-level pricing-regardless of whether the Concessionaire owns or operates such businesses. 4. The Concessions Department may at its discretion require Concessionaire to submit documentation verifying compliance with the street-level pricing requirements herein. The Board may require Concessionaire to submit their price comparison using an automated process method. If Concessionaire fails to submit said documentation of compliance within the time specified by Board, or if documentation submitted is erroneous, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. 5. The Concessions Department may at any time compel Concessionaire to lower prices within two (2) business days on specific items to bring them into compliance with street-level pricing, but nothing herein shall negate the general default and remedies provisions of this Lease. 6. The Concessions Department may grant any exemption(s) from street-level pricing but any such exception or determination must be in writing and signed by the Vice President of Concessions, and under no circumstances shall Concessionaire be entitled to any such exemption. 7. If Concessionaire is required by this Lease to participate in product exclusivity contracts made by Board, said exclusivity contracts may include minimum or maximum prices that shall be binding on Concessionaire notwithstanding any higher price allowed or lower price required by the street-level pricing provisions herein. E. At any time during the Term hereof the Board may make or cause to be made a survey of prices being charged for products or services offered by Concessionaire from the Premises hereunder. If the survey concludes that any prices being charged by Concessionaire on the Premises are not in accordance with the terms of this Lease, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. F. Failure to comply with the provisions of this section shall constitute a material default. If Concessionaire, after receiving notice to reduce prices and/or application of any penalty is later found to have again violated the street level pricing policy within the Fiscal Year, the Board shall have the right to collect a Non- Compliance Fee per the Schedule of Charges and/or terminate this Lease for cause by giving thirty (30) days written notice. Failure of the Board to exercise its right to terminate this Lease shall not constitute a waiver of the Board's right to terminate at a later date for the same, similar or continued violation of the street level pricing policy.

Appears in 1 contract

Sources: Concession Lease Agreement

Standards of Operation. Section 6.01 Products and Pricing A. Concessionaire has caused to be attached hereto as Exhibit "B" a complete listing of all goods, menu items and/or services Concessionaire is allowed to sell from the Premises as well as the prices to be charged to the public. The execution of this Lease constitutes acceptance by the Board of the merchandise, services and pricing as reflected on the referenced exhibit. B. Concessionaire shall not add, delete or sell merchandise categories, menu items and/or services not reflected on the aforesaid exhibit without first receiving written approval from the Airport Concessions Department, which shall not be unreasonably withheld or delayed. It is agreed that in the event of any conflict between Concessionaire and another lessee as to specific items sold, the Board or its designee shall have the sole authority to resolve the conflict as it deems appropriate. Concessionaire shall provide for the sale of any additional merchandise or the furnishing of any additional service as directed by the Airport Concessions Department. Prices must be visibly displayed to customers for all products. C. If Concessionaire offers merchandise promoting the City of Dallas or Fort Worth, or promoting tourist attractions in either city, then Concessionaire shall offer merchandise promoting both such cities and their respective tourist attractions, as instructed by the Airport Concessions Department in its reasonable discretion. D. Concessionaire further understands the Board's objective to limit the prices charged for products and services sold to the public at the Airport to no more than ten (10) percent above "street level pricing" (the off- off-Airport prices charged for comparable products and services). Accordingly, Concessionaire warrants and represents that Concessionaire, its employees, successors and assigns, if any, will adhere to the following: 1. Prices charged at the Premises for each item of products and services shall be no more than ten percent (10%) higher than comparable products or services sold outside the Airport. The Concessions Department shall have the discretion to define what constitutes an individual item sold, including without limitation combinations or bundling of items. 2. In determining which products and services off-Airport are to be used for street-level pricing comparisons, the parties agree that if Concessionaire owns or operates a similar business selling like products or services to the public within twenty (20) miles of the Airport, then prices at said business (other than non-traditional venues) shall be deemed comparable. If Concessionaire owns or operates more than one (1) similar business selling like products or services to the public within twenty (20) miles of the Airport, then the average of a minimum of three (3) locations’ prices for each such product or service shall be deemed comparable. The Concessions Department shall have the discretion to determine whether Concessionaire's off-Airport businesses are similar and whether particular products or services are alike. If Concessionaire does not own or operate a similar business selling like products or services to the public within twenty (20) miles of the Airport, then the parties agree to use comparisons from other off-Airport businesses. 3. Upon receiving TCO (Temporary Certificate of Occupancy) and on April 1st of each year thereafter, Concessionaire shall provide an updated merchandise list with current prices and shall provide the Concessions Department names and addresses of local area businesses that Concessionaire believes to be comparable, together with the specific products and services that Concessionaire believes to be comparable. However, the Concessions Department shall have the discretion to reject said suggestions from Concessionaire and to select other businesses and other products and services. Prices from non- traditional venues, such as amusement parks, other entertainment venues, stadiums, other airports, hotels, hospitals, and zoos shall not be acceptable for use in establishing street-level pricing-regardless of whether the Concessionaire owns or operates such businesses. 4. The Concessions Department may at its discretion require Concessionaire to submit documentation verifying compliance with the street-level pricing requirements herein. The Board may require Concessionaire to submit their price comparison using an automated process method. If Concessionaire fails to submit said documentation of compliance within the time specified by Board, or if documentation submitted is erroneous, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. 5. The Concessions Department may at any time compel Concessionaire to lower prices within two (2) business days on specific items to bring them into compliance with street-level pricing, but nothing herein shall negate the general default and remedies provisions of this Lease. 6. The Concessions Department may grant any exemption(s) from street-level pricing but any such exception or determination must be in writing and signed by the Vice President of Concessions, and under no circumstances shall Concessionaire be entitled to any such exemption. 7. If Concessionaire is required by this Lease to participate in product exclusivity contracts made by Board, said exclusivity contracts may include minimum or maximum prices that shall be binding on Concessionaire notwithstanding any higher price allowed or lower price required by the street-level pricing provisions herein. E. At any time during the Term hereof the Board may make or cause to be made a survey of prices being charged for products or services offered by Concessionaire from the Premises hereunder. If the survey concludes that any prices being charged by Concessionaire on the Premises are not in accordance with the terms of this Lease, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. F. Failure to comply with the provisions of this section shall constitute a material default. If Concessionaire, after receiving notice to reduce prices and/or application of any penalty is later found to have again violated the street level pricing policy within the Fiscal Year, the Board shall have the right to collect a Non- Compliance Fee per the Schedule of Charges and/or terminate this Lease for cause by giving thirty (30) days written notice. Failure of the Board to exercise its right to terminate this Lease shall not constitute a waiver of the Board's right to terminate at a later date for the same, similar or continued violation of the street level pricing policy.two

Appears in 1 contract

Sources: Concession Lease Agreement

Standards of Operation. Section 6.01 Products and Pricing A. Concessionaire has caused to be attached hereto as Exhibit "B" a complete listing of all goods, menu items and/or services Concessionaire is allowed to sell from the Premises as well as the prices to be charged to the public. The execution of this Lease constitutes acceptance by the Board of the merchandise, services and pricing as reflected on the referenced exhibit. B. Concessionaire shall not add, delete or sell merchandise categories, menu items and/or services not reflected on the aforesaid exhibit without first receiving written approval from the Airport Concessions Department, which shall not be unreasonably withheld or delayed. It is agreed that in the event of any conflict between Concessionaire and another lessee as to specific items sold, the Board or its designee shall have the sole authority to resolve the conflict as it deems appropriate. Concessionaire shall provide for the sale of any additional merchandise or the furnishing of any additional service as directed by the Airport Concessions Department. Prices must be visibly displayed to customers for all products. C. If Concessionaire offers merchandise promoting the City of Dallas or Fort Worth, or promoting tourist attractions in either city, then Concessionaire shall offer merchandise promoting both such cities and their respective tourist attractions, as instructed by the Airport Concessions Department in its reasonable discretion. D. Concessionaire further understands the Board's objective to limit the prices charged for products and services sold to the public at the Airport to no more than ten (10) percent above "street level pricing" (the off- Airport prices charged for comparable products and services). Accordingly, Concessionaire warrants and represents that Concessionaire, its employees, successors and assigns, if any, will adhere to the following: 1. Prices charged at the Premises for each item of products and services shall be no more than ten percent (10%) higher than comparable products or services sold outside the Airport. The Concessions Department shall have the discretion to define what constitutes an individual item sold, including without limitation combinations or bundling of items. 2. In determining which products and services off-Airport are to be used for street-level pricing comparisons, the parties agree that if Concessionaire owns or operates a similar business selling like products or services to the public within twenty (20) miles of the Airport, then prices at said business (other than non-traditional venues) shall be deemed comparable. If Concessionaire owns or operates more than one (1) similar business selling like products or services to the public within twenty (20) miles of the Airport, then the average of a minimum of three (3) locationsprices for each such product or service shall be deemed comparable. The Concessions Department shall have the discretion to determine whether Concessionaire's off-Airport businesses are similar and whether particular products or services are alike. If Concessionaire does not own or operate a similar business selling like products or services to the public within twenty (20) miles of the Airport, then the parties agree to use comparisons from other off-Airport businesses. 3. Upon receiving TCO (Temporary Certificate of Occupancy) and on April 1st of each year thereafter, Concessionaire shall provide an updated merchandise list with current prices and shall provide the Concessions Department names and addresses of local area businesses that Concessionaire believes to be comparable, together with the specific products and services that Concessionaire believes to be comparable. However, the Concessions Department shall have the discretion to reject said suggestions from Concessionaire and to select other businesses and other products and services. Prices from non- traditional venues, such as amusement parks, other entertainment venues, stadiums, other airports, hotels, hospitals, and zoos shall not be acceptable for use in establishing street-level pricing-regardless of whether the Concessionaire owns or operates such businesses. 4. The Concessions Department may at its discretion require Concessionaire to submit documentation verifying compliance with the street-level pricing requirements herein. The Board may require Concessionaire to submit their price comparison using an automated process method. If Concessionaire fails to submit said documentation of compliance within the time specified by Board, or if documentation submitted is erroneous, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. 5. The Concessions Department may at any time compel Concessionaire to lower prices within two (2) business days on specific items to bring them into compliance with street-level pricing, but nothing herein shall negate the general default and remedies provisions of this Lease. 6. The Concessions Department may grant any exemption(s) from street-level pricing but any such exception or determination must be in writing and signed by the Vice President of Concessions, and under no circumstances shall Concessionaire be entitled to any such exemption. 7. If Concessionaire is required by this Lease to participate in product exclusivity contracts made by Board, said exclusivity contracts may include minimum or maximum prices that shall be binding on Concessionaire notwithstanding any higher price allowed or lower price required by the street-level pricing provisions herein. E. At any time during the Term hereof the Board may make or cause to be made a survey of prices being charged for products or services offered by Concessionaire from the Premises hereunder. If the survey concludes that any prices being charged by Concessionaire on the Premises are not in accordance with the terms of this Lease, Concessionaire may be charged Non Compliance Fees per the Schedule of Charges. F. Failure to comply with the provisions of this section shall constitute a material default. If Concessionaire, after receiving notice to reduce prices and/or application of any penalty is later found to have again violated the street level pricing policy within the Fiscal Year, the Board shall have the right to collect a Non- Compliance Fee per the Schedule of Charges and/or terminate this Lease for cause by giving thirty (30) days written notice. Failure of the Board to exercise its right to terminate this Lease shall not constitute a waiver of the Board's right to terminate at a later date for the same, similar or continued violation of the street level pricing policy.

Appears in 1 contract

Sources: Concessions Lease