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Jargon buster
We know that there's a lot to take in when considering whether to take on a pub business and if you're new to the trade then there's probably lots of "jargon" that you're not used to. To help you we have defined the most popular terminology for you below:
Assignability
The ability to sell on (assign) your business at the end of an agreed qualifying period. This means you can benefit from the good will you have built up in your business.
AWP
Amusements With Prizes ie games machines
BDL
Business Development Lease – Trust Inns has a 3 year and 10 year BDL
BDM
Business Development Manager
BII
British Institute of Innkeeping. The professional body for the licensed sector
Bond
This is similar to a bond you would pay when renting a private property. Just like leaving a private property, upon leaving the pub, if everything is in good repair and there is no outstanding debt you will receive your bond back in full and with interest.
F&F
Fixtures & Fittings – you will purchase and subsequently own the F&F within the pub such as furniture, fridges, cellar coolers etc. This cost is calculated by and Independent Valuer before you take over the pub. This is an investment costs as you are able to sell on the F&F should you choose to leave the pub.
FMT
Fair Maintainable Trade - this refers to the expectation of trade the pub is expected to achieve.
Food led
A pub whose sales are predominantly driven by food sales.
Free of tie
Any products that are Free of Tie means that you are able to purchase them from any supplier and to negotiate your own terms.
Initial rent
This is so you don't have to worry about your rent in the first 3 months as you take over the pub. We ask for 3 months payment in advance.
Tenancy
The tenant takes full responsibility for the running of the day to day business of the pub, but the bricks and mortar continue to be the property of the pub company, in this case Trust Inns.
Wet led
A pub whose sales are predominantly driven by sales of products such as lager, beer, wine and spirits.
Working capital
We always advise you to keep a set sum aside to cover the costs you will probably incur in your first few months of trading such as your till float or staff wages.
