The term refers to property rights granted within a larger facility or area, typically owned or controlled by another entity. This agreement allows an operator to conduct business activities at a specific location, such as selling goods or services. Consider a coffee shop located within an airport terminal. The coffee shop operator does not own the space; instead, they operate under an agreement with the airport authority, granting them the right to sell coffee and related items within a designated area.
These arrangements provide several advantages. For the property owner, it creates a revenue stream without the direct responsibility of operating the business. For the operator, it provides access to a high-traffic location or specialized market that would otherwise be difficult to obtain. Historically, these agreements have been prevalent in transportation hubs, entertainment venues, and public parks, facilitating convenient access to goods and services for visitors.
