What is a tenancy agreement?
A Tenancy Agreement is an agreement between a person or persons who rents a Brewery owned public house, whilst carrying on business as a self employed licensee.
How long does the agreement last for?
The agreement is for a term of 3 years.
How often will rent be reviewed?
The rent is reviewed after 3 years.
Are the agreements covered by the Landlord & Tenants Act?
The agreement embraces the act.
What are my obligations under the agreement in relation to repairs etc?
Your responsibility as a tenant is to decorate the interior every 3 years, replace broken window panes, keep gardens, and car parks tidy etc, replace light bulbs and service boilers and generally keep the living accommodation and public areas clean and tidy.
What about alterations and improvements?
If it were agreed by the Brewery that your pub requires altering or improving the Brewery would be responsible for carrying out the work. The only cost to you would be the cost of purchasing and improving fixtures and fittings. The rent is reviewed after any major expenditure.
What are fixtures and fittings?
These are certain items that are an integral part of the pub and necessary to the operation of it, i.e. table, chairs, soft furnishings, bar and catering equipment etc.
Do I have to buy drinks from the Brewery?
Under the terms of Hook Norton Brewery Tenancy Agreements you are required to purchase all drink products from the Brewery, or specified supplier.
How much money do I need to have available to invest in a Tenancy?
This varies from pub to pub. As well as a bond you will also require capital to purchase the fixtures and fittings. You should also have available a certain amount for working capital, to buy stock, glassware etc.
Do I have to deposit a bond with the Brewery?
Yes, like most other Brewers a Security Bond is required usually between £5,000 and £10,000. The Bond is held on behalf of a tenant by the Brewery and attracts interest.
What about credit and payment terms?
All payment to the Brewery regarding rent and payment for goods etc is made by direct debit. Rent is charged monthly in advance and payment for goods is collected on the 10th of the month following delivery.
Will I receive training?
Yes, we run an in house cellar-training course, but we can also advise on suitable courses for:
- Marketing & Merchandising
- Financial Management
- Employment Law & Licensing Law
- Hygiene Health & Legislation
- Security & Drug Awareness
What about food?
The set-up and operation (and profit!) from food sales are entirely the responsibility of the tenant. We fully support all licensees who incorporate a food offering in their pub.
What about fruit machines etc?
The Tenancy Agreement allows the tenant to operate fruit and trivia machines commonly known as SWPs ( skills with prizes) and AWPs (amusement with prizes). For AWPs, after the machine operator has deducted the weekly rent including VAT, the tenant receives 50% of the remaining monies. For SWPs, the tenant receives 40%. Income from pool tables, jukeboxes or vending machines etc is solely the tenant’s. A Hook Norton Brewery nominated supplier must supply all types of machine.
Ok I am interested in becoming a Tenant of a Hook Norton public house, what next?
Fill out an application form that is available from the main menu and return it by post to Hook Norton Brewery. We will then contact you further regarding you application.
DOWNLOAD TENANTS APPLICATION FORM WORD DOCUMENT
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