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Thursday 11st March 2010
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TRUST INNS' BUSINESS DEVELOPMENT
Trust Inns' Tenancy Agreement (3 years) England & Wales
The Trust Inns' Business Development Lease (3yrs) provides an excellent opportunity for those looking to run a pub. The lease agreement falls within the Landlord and Tenant Act 1954 and all tenants have the protection afforded by that Act. The key points of the agreement are shown below (for more detailed information please read our Code of Practice):
- The tenant is responsible for interior decoration and also all repairs except structural repairs (In this context "structural" means the main walls, roof and foundations). Keeping the property in safe and good repair is essential for you, your staff and your customers.
- The company is responsible for external decorations and signage.
- The tenant is obliged to purchase (commonly referred to as the tie) all draught packaged beers, cider, perry, flavoured alcoholic beverages (alcopops) and minerals from the company or its nominated suppliers.
- There is no tie on Wines, Spirits and Soft Drinks and these may be purchased from the supplier of your choice.
- A barrelage discount scheme is in place offering discounts of £60 per composite barrel at the point of purchase via our nominated suppliers.
- The lease is assignable, that is you can sell it after the first year, and once in the hand of the new purchaser after their first year.
- We will insure the building; this insurance cost is recharged on a monthly basis to the tenant in the form of an Insurance Rent. You will be notified of this amount prior to signing the agreement.
- The lessee must insure the moveable fixtures and fittings and stock as well as effecting all other normal business insurance and be able to show proof that this insurance is in place.
- The initial rent set for the outlet will take into account the condition of the property, your obligations under the tenancy and, in particular, the trading tie. It will also reflect that a barrelage incentive scheme is in operation. The rent is based on estimated profit which the business could produce and on the assumption it will be run in an efficient and competent manner.
- Rent is Retail Price Indexed linked (1st October every year).
- All initial rents and rent reviews are assessed by the preparation of an estimated profit and loss account.
For full details of the agreement please see our Code of Practice.
Trust Inns' Business Development Lease (10 years)
The Business Development Lease (BDL) is ideal for lessees looking for a longer period of tenure and who may wish to invest their own capital into the development and refurbishment of the pub, to redecorate externally on their own advanced cycle and who wish to enhance the business. The lease falls within the Landlord and Tenant Act 1954 which offers protection for the lessee.
The principal points of our 10 year lease are as follows:
- It is fully assignable after the first 12 months of operation - giving an opportunity to realise investment gains early in the pub's development life cycle if so desired.
- It is a full repairing and insuring lease, meaning the tenant takes on responsibility for the property as a whole - internal and external decorations and all structural repairs including main walls, roof and foundations.
- A full tie exists on Beers, Ciders, Perrys and Flavoured Alcoholic Beverages / Alcopops.
- Freedom of tie exists for Wines, Spirits and Soft Drinks, that is you may buy these products from the supplier of your choice.
- A barrelage discount is offered with discounts of £60 per barrel off qualifying Beers and Ciders included in the company's Price List.
- Machine share of 50/50 applies - tenant and company, on all Amusement with Prize Machines, Multimedia Machines and Pool Tables.
- Rent is Retail Price Indexed linked (1st October each year)
- Rent reviews are set at 5 yearly intervals (and are based on the same assessment criteria as the 3 year agreement)
- Fund raising; the lease may be charged that is, to raise funds via a Bank or Building Society for reinvestment into the structure of the property as part of a business development project.
- Landlord & Tenant Act 1954 protection applies
For full details of the agreement please see our Code of Practice.
