Ways to enter the trade

INDUSTRY SPECIFIC VOCABULARY TENANCY
An agreement between you and the Landlord from whom you rent your property
MANAGEMENT
An agreement where you retain an agreed % of all net weekly sales
LEASE
An agreement where you purchase a lease to run the property. These are long-term agreements, usually between 10 and 21 years.
Deposit/Bond
  • Usually about 25% of rent
  • Held against arrears on account
  • Returned within 28 days, subject to account being cleared and dilapidations being rectified
  • Minimal, usually around £5000, returned at end of agreement
  • Legal fees, independent legal advice, accountant’s advice and surveyor’s advice
  • Non-negotiable
  • Approximately £6000 or 1/4’s rent
  • Held against arrears on account
  • Returned within 28 days, subject to account being cleared and dilapidations being rectified
Fixtures & Fittings
  • Costs should be on valuation via an independent valuer
  • Possibility of renting can be negotiated
  • Pub Company retains responsibility for all repairs
  • Costs should be on valuation via an independent valuer
  • Possibility of renting can be negotiated
Maintenance
  • Rule of thumb – Pub Co. responsible for structure of building
  • Tenant responsible for internal repairs
  • Pub Company retains responsibility for all repairs
  • Completely responsible for the entire condition of the property
  • At the end of the lease you will be served with a Schedule of Dilapidations – a list of works that you must carry out or be charged for
Running Costs
  • Responsible for all running costs of the business
  • Covered by the Pub Company including all consumables Sky TV, Business rates, Utilities, Buildings Insurance, licences, cleaning & office supplies, reasonable entertainment charges incurred, gardening bills and marketing materials
  • Responsible for all running costs of the business
Assignable Agreement  
  • No rights to assign the agreement for any goodwill premium
  • Main benefit of a lease agreement is that you can sell the goodwill built up to a third party
  • Saleable price depends on profitability, Landlord usually has the right to approve the sale
Contractual Payments
  • Rent, Service Charge, Building insurance, Insurance for personal effects, stock, F&F Public Liability Insurance, Employers Liability Insurance
  • Pay yourself and your staff, the council tax for your living accommodation, registering for VAT machines gaming duty, any insurance outlined in your contract. Pub Company retains responsibility for all repairs, investment, other bills, including food and drinks purchases
  • Rent, Service Charge, Building Insurance, Insurance for personal effects, stock, F&F Public Liability Insurance, Employers Liability Insurance
Tie Status & Purchase Obligations
  • A Full Tie purchase all draught and packaged soft drinks, wines and spirits or Partial Tie may be available dependent on agreement with individual Pub Companies
  • The Pub Company supplies all food and drink for the site. There may be some occasions where the operator is not tied on food products
  • A Full Tie purchase all draught and packaged soft drinks, wines and spirits or Partial Tie may be available dependent on agreement with individual Pub Companies
Fruit Machines, Quiz machines & Jukeboxes
  • Arrangements are made on a pub by pub basis dependent on agreement
  • Pub Company retains all income
  • Arrangements are made on a pub by pub basis dependent on agreement
Business Assistance from Landlord
  • An area manager (actual titles vary between Pub Co’s) will be assigned to you to support you. Many Pub Co’s have in-house training courses and on-going professional development opportunities to help you grow your business and become more successful
  • The area manager will work with you to make sure the pub is ready to run in line with the shared vision for the site.
  • The Pub Company will supply everything you need to get you up-and-running in advance, so the pub is ready to trade with the appropriate food and drinks menus format already set up for you
  • An area manager (actual titles vary between Pub Co’s) will be assigned to you to support you. Many Pub Co’s have in-house training courses and on-going professional development opportunities to help you grow your business and become more successful