Jargon Buster

Find Out What it Means!

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 below:

• Assignability – The ability to sell on (assign) your business at the end of an agreed time period. This means you can benefit from the good will you have built up in your business.
• AWP – Amusements With Prizes eg games machines
• BBPA – British Beer and Pub Association
• 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.
• F&F – Fixtures and fittings – you will purchase and subsequently own the F&F within your pub such as furniture, fridges, cellar coolers etc. This cost is calculated by an Independent Valuer before you take over the pub. This is an investment cost as you are able to sell on the F&F should you choose to leave the pub.
• FMT – Fair Maintainable Trade
• Food lead – A pub whose sales are predominantly lead by food
• 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.
• Tenancy – The tenant is self employed and takes the full responsibility for the running of the day to day business, but the bricks and mortar continue to be the property of the pub company, in this case Trust Inns.
• Wet lead – 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.