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Three year Business Development Lease
The Trust Inns' Business Development Lease (3yr) provides an excellent opportunity for those looking to run a pub with a relatively low investment requirement. It falls within the Landlord & Tenant Act 1954 (excluding Scotland) and offers licensees all the protection afforded by that Act.
The main points of our agreement are laid out below:
Time period: 3 years
Key benefits:
- You can sell on (assign) your business after 12 months to benefit from your hard work.
- A barrelage discount scheme is in place offering competitive discounts per composite barrel on qualifying beers and ciders at the point of purchase from our nominated suppliers.
- There is no obligation to buy Wines, Spirits or Soft Drinks and these may be purchased from the supplier of your choice.
The rent
This is an open market rent which reflects the provisions within the lease agreement. It will increase annually in line with the Retail Price Index (1st October) and is reviewed every three years.
Brands on the bar
The lessee is obliged to purchase (commonly referred to as the tie) all draught and packaged beers, cider, perry and flavoured alcopops from the company or its nominated suppliers.
Responsibility for repairs
The lessee is responsible for interior decoration and all repairs except for structural repairs eg main walls, roof and foundations which the company maintains along with external redecorations.
Insurance
We will insure the building; this insurance cost is recharged on a monthly basis in the form of an Insurance Rent. The lessee must insure moveable fixtures and fittings and stock.
Machines
Income from all AWP/Pool/Multimedia machines is split 50/50 between the lessee and the company.
