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Saturday 4th July 2009
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- types of agreement
TRUST INNS' TENANCY AGREEMENT
Trust Inns' Tenancy Agreement 3 year (Scotland)
Under review in 2008
We offer a standard form of Tenancy Agreement that runs for a period of three years and unless it is terminated by you or us at the end of the third year, will continue for a further period of three years.
- The tenant is responsible for interior decoration and also all repairs except for structural repairs. In this context “structural” means the main walls, roof and foundations.
- The company is responsible for external decorations and associated repairs.
- The tenant is obliged to purchase all draught and packaged beers, cider, perry, flavoured alcoholic beverages (alcopops) and minerals from the company or its nominated suppliers.
- There is no tie on Wines and Spirits and these may be purchased from the supplier of your choice.
- A barrelage incentive scheme is operated.
- The tenancy is not assignable and no sub-lettings may be created.
- We will insure the building and take out insurance to cover the company for loss of income should the licence be lost. The premiums are recharged to the tenant in the form of an Insurance Rent. The tenant must insure the moveable fixtures and fittings and stock as well as effecting other normal business insurance and show proof that this insurance is in place.
- Tenants are advised to take out insurance covering their own ‘personal contents’.
- Rent will be set at a market rent, which takes into account your obligations under the tenancy and, in particular, the trading tie and it will also reflect that a barrelage discount scheme is in operation.
- Under the standard tenancy, rent will be reviewed in an upward only direction only at the end of each three years of the term. Again, new rent will take into account the trading tie as well as the other provisions of the tenancy agreement. You will be given advance notice of the proposed rent at each review stage.
- There is no break clause in the tenancy, although either party can terminate the agreement at the end of each three-year period.
- You will require the consent of your Business Development Manager before bringing on or retaining on the premises any Amusement With Prize (AWP) machine or pool or snooker table, or multi media machine (including Touch Screen Video and Hi Tech Skill with Prize machines). Income is split 50-50 for all AWP and multi media machines, and 60/40 in your favour for pool and snooker tables, in each case after payment of machine supplier share or rent or hire charges and reimbursement of licence duty.
The Code of Practice for Scotland is currently being updated. For a current copy please contact the Recruitment Department on 01257 238800
