Opinion ID: 670736
Heading Depth: 2
Heading Rank: 1

Heading: The Wendy's-Authority Agreement

Text: 3 Wendy's and the Tollway Authority created a draft agreement regarding operation of the tollway oases, but the draft differed in an important respect from the final version. The draft of the Wendy's-Authority agreement obligated Wendy's to pay the Authority both a fixed minimum compensation and a percentage compensation for operating the gift and floral shops at the Hinsdale Oasis. The draft set the minimum compensation at $22,400 per six month period. 1 4 Percentage compensation worked according to the following formula. When, in either the first or last six months of the year, the sum of 15% of gift shop sales in excess of $200,000 plus 10% of floral shop sales in excess of $87,500 exceeds $22,400 (minimum compensation), Wendy's must pay the Authority the difference between the sum and $22,400. 2 If, for example, the gift shop had $300,000 in gross sales and the floral shop had $100,000 in gross sales, percentage compensation would be as follows: 5 Total compensation under the draft Wendy's-Authority Agreement using the above example would be $55,000, percentage compensation of $32,600 plus minimum compensation of $22,400. 6 The final Wendy's-Authority Agreement, however, differed in a crucial respect. That agreement contained the same formula except that it did not deduct minimum compensation from percentage compensation owed. 3 Using the same example, percentage compensation would be as follows: 7 Under both the draft and final Wendy's-Authority Agreement, the provisions governing the Lake Forest Oasis operated in much the same manner as detailed regarding the Hinsdale Oasis.