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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Rental car brands operating at Fort Lauderdale-Hollywood International Airport must post a security deposit with Broward County sized off their own Minimum Annual Guarantee and rent. A payment and performance bond satisfies it without locking up that cash or tying up a bank line with a letter of credit.
Broward County's Rental Car Concession Lease and Operating Agreement for Fort Lauderdale-Hollywood International Airport requires each concessionaire to post a security deposit equal to one-fourth of its first year Minimum Annual Guarantee plus three months of first year Facility Rent. The deposit may be cash, a letter of credit, or a payment and performance bond, and it must stay in force for the full term plus six months.
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Most people looking for this bond expect a set dollar amount. There is none. Under Section 4.14 of the County's form Rental Car Concession Lease and Operating Agreement, the security deposit equals one-fourth of the concessionaire's Agreement Year 1 Minimum Annual Guarantee plus three months of Agreement Year 1 Facility Rent. Your bond amount therefore depends on the MAG your company bid and the rent on your space in the Joint-Use Facility. The County can also raise the required deposit on 14 days' notice.
Every rental car company that signs a concession agreement with Broward County, acting through its Aviation Department, to operate at FLL. The concessionaire chooses the form of security: cash, a letter of credit, or a payment and performance bond.
The agreement does not accept just any surety. The bond must come from a company with a resident agent in Broward County, at least five years of continuous operation, and an A rating in the latest Best's Insurance Report. The bond must remain in force for the entire term and for six months after the agreement ends. Letting it lapse early is a problem under the agreement.
The concessionaire pays the County the greater of 10 percent of monthly Gross Revenues or the monthly MAG installment, plus Facility Rent and other charges. The bond guarantees those payments and the rest of the agreement's obligations. After each year the MAG resets to the greater of 85 percent of the prior year's Privilege Fees or the prior MAG, so the County may ask for more security as revenue grows.
These terms come from the form agreement the Board considered on November 13, 2018. Confirm the security language in your own executed agreement with the Broward County Aviation Department before the bond is issued.
It equals one-fourth of your first year Minimum Annual Guarantee plus three months of first year Facility Rent. Because the MAG is set in your own agreement, every concessionaire's amount is different.
Yes. The agreement accepts cash, a letter of credit or a payment and performance bond. A bond avoids tying up bank credit capacity.
For the full term of the agreement and six months after it ends. The form agreement runs ten years from the effective date.
Yes. The County may increase the required security deposit on 14 days' notice.
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