Concession Agreement

A Concession Agreement is a document used when the owner of a public venue, such as a stadium or mall, would like to grant permission to the operator of a concession stand to sell concessions at the venue. The goods or services offered can be foods, beverages, novelties, or other products required by the public at the venue.

Using this document, the owner can make products or services available to their customers without having to be directly involved in the day-to-day management of the concession stand. The concession stand operator, also known as a "concessionaire," benefits from this by having a space to operate their business and an increased customer base due to being able to sell to the property owner's existing customers. The concessionaire typically pays the property owner a fixed fee, such as rent, or a profit-sharing arrangement for the right to operate their concession stand at the venue.

This document is similar to, but not the same as, a general-purpose Commercial Lease Agreement. In a Concession Agreement, there is more focus on the mutually beneficial nature of the agreement, since it both provides a space for the concessionaire to sell their goods while allowing the venue owner to provide the public who frequents their venue with access to those goods without the venue owner having to hire employees and manage the concession business directly. A Concession Agreement is a form of outsourcing of that labor. As opposed to a Commercial Lease Agreement, the venue owner is usually more involved in the operation of the concession stand, particularly the setup and providing a functional space where the stand can operate. Unlike in a Commercial Lease, the venue owner often reviews and approves the products being sold, the price list, dress code for the concessionaire's employees, and other details of the business operation. The concessionaire is then responsible for managing the day-to-day operations of the concession stand.

Using a Concession Agreement is useful for all of the parties involved because it lays out the terms of the business relationship and protects everyone's interests in adhering to the agreement that they come to. Neither party is surprised by the other's expectations and both the concessionaire and the venue owner understand their respective rights and responsibilities. Often, individuals enter into business relationships without having all of the details of the parties' relationship with each other written down. By discussing the specifics of the Agreement ahead of time, both the concessionaire and the venue owner can make sure that their needs and wishes about the performance are known and honored.

How to use this document

This document covers all of the important information necessary for an individual or business who owns a venue to enter into a business relationship with a concessionaire who would like to run a concession stand and sell to the public at venue owner's property, including the following details:

• Pertinent identifying information for all involved parties
• Specifics of what the concession stand will entail, including a description of the goods and services that will be sold, the hours the concession stand will be open for business, and the option to attach a detailed pricing list
• Designation of responsibility for providing the equipment necessary for the concessionaire to run the concession stand, as well as assignment of responsibility for maintaining the equipment and concession stand area itself
• Amount of compensation the venue owner will receive from the concessionaire, such as a one-time flat fee, a reoccurring fee paid like rent, a percentage of gross sales revenue, some combination of those options, or another form of compensation entirely, and when that compensation will be paid
• Whether or not the concessionaire will have the exclusive right to sell their goods or services at the venue without competition from other similar concession stands
• Details about when and how the Agreement will be terminated

The venue owner and the concessionaire can discuss the terms of the Agreement and create and sign the final Agreement prior to the concessionaire open the concession stand. After inputting the required information, this Agreement is printed out and signed by both Parties, and then kept on file by both parties for the duration of the Agreement as well as for a reasonable period of time thereafter.

Applicable law

A Concession Agreement is similar to both a service agreement and a commercial lease agreement. As with all service agreements, Concession Agreements are subject to both federal and state laws that cover general contract principles governing how contracts are created and interpreted by courts. Federal laws may restrict what services can be contracted for (for example, illegal services may not be contracted for) and certain broad categories, like contracting for something that looks more like an employment relationship, but individual state laws may govern the interpretation of the contract in case of a dispute. A Concession Agreement is also governed by state laws that control leases and, since they are commercial in nature, are significantly more permissive than residential leases.

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