UNC received a million-dollar signing bonus that went to need-based scholarships and financial aid, said Brad Ives, associate vice chancellor for campus enterprises.
“Just on the signing bonus we’re significantly ahead,” Ives said. “What we expect with the $3 million guarantee that we’ll get over the course of the year will be significantly more money than we’ve ever received in the past operation of the stores.”
Under UNC’s contract with Barnes & Noble College, UNC receives a monthly percentage of income from Student Stores or a guaranteed payment at the end of the year, Ives said.
“So if the aggregate over 12 months is less than the guaranteed, then we receive the guaranteed; if the aggregate exceeds the guarantee, then we receive the actual percentage,” he said.
According to the contract, the guaranteed payment for this agreement year — which runs from July 1, 2016 to June 30, 2017 — and the next year is $3 million each year. After the initial two years, the minimum annual guarantee will be 95 percent of sales commissions.
UNC expects to receive the $3 million guarantee for the first two years, which they will use to pay university expenses before turning the net amount over to need-based scholarships, Ives said. He expects anywhere from 1.75 million to two million dollars going to scholarships yearly in the first years of operation.
Michele Gretch Carter, the director of Student Stores, said the new Student Stores helps the campus by supporting employment, especially student employment, but the biggest benefit the campus enjoys is saving money.
“That’s the biggest focus of why we were brought to campus,” she said. “And so we’re very proud of that, and we are supporting that and we are doing everything we can to make sure that we can sustain that kind of affordability going forward.”