Charles Wells

"First choice for customers and consumers"

Pub Tenancy & Pub Lease FAQs

Tenancies and Leases are commercial arrangements whereby a Pub Business, including the building and curtilage, is let to a party, whether it be an individual, partnership or limited company.

The terms of the letting are incorporated into an agreement which includes details of trading arrangements, property repair responsibilities and other legal requirements for both parties. These arrangements provide the Tenant/Lessee with freedom to run their own business, but with the additional support of an experienced Pub Operator.

Charles Wells Pub Company has a range of agreements designed to suit all requirements. They have different features to appeal to a wide spectrum of operators wanting to run their own pub, dependant on their personal circumstances.

'Easy Start' Agreement

Suitable for first time entrants into the trade who have restricted acess to capital

• Lower in-going costs that are restricted to deposit, stock, glassware and legal/admin fees
• One month notice period
• Contracted out of the Landlord and Tenant Act so greater flexibility for both parties
• Invariably applies to smaller sites that are less complex to operate

Introductory Agreement

Often utilised as an 'introductory'agreement prior to conversion to a full tenancy or lease

• Six month notice period
• Inventory costs negotiable
• Deposit, stock, glassware and legal/admin fees also applicable
• Contracted out of Landlord & Tenant Act with a 6 month break clause

Classic Tenancy Agreement

Provides the operator with a good combination of flexibility and security

• Inventory, deposit, stock, glassware and legal/admin fees applicable
• Contracted into the Landlord & Tenant Act
• Charles Wells responsible for external and internal trading area redecorations
• Rolling three year agreement with tri annual rent reviews
• Notice 12 months prior to the triennial rent review

New Assignable Lease

Suited to experienced operators looking to benefit from the capital appreciation from goodwill generated within the business

• 10 or 15 years lease duration
• Assignable after three years
• Inventory, deposit, stock, glassware and legal/admin fees applicable
• Excludes major structural repairs liability as agreed with the Retail Development Manager (RDM)

Are your agreements fully tied?

Yes. We provide a one stop shop for all products. Our range includes our own award winning brands plus many other household names so you can offer your customers an impressive choice.

How is the rent calculated?

The rent is calculated by creating a realistic Profit and Loss Account and reflects Open Market rent. This will normally equate to approximately 12% of the net turnover, but each house will have individual calculations, based on turnover and overheads.

This will depend on your experience, but the minimum qualification required for obtaining a Licence is the National Certificate for Personal Licence Holders (NCPLH). We also require Licensees to attend our comprehensive induction programme before running a Charles Wells pub and will agree any further training requirements with you before you take the pub.

Download our guide to getting a personal licence here.

We will issue you with a Schedule of Repair responsibilities for your pub with our Heads of Terms offer letter. In short, Charles Wells retains responsibility for the main structure of the Building. Licensees are responsible for all minor repairs as detailed on the Schedule. For longer leases, repair responsibility shifts towards the lessee.

Repair responsibilities differ by agreement type. The Retail Development Manager will discuss these with you before you make a commitment.

For Tenancies Charles Wells Pub Company is responsible for the decoration of the exterior and internal public areas. These are normally undertaken every five years. For longer leases, Licensees will be responsible for decoration of the premises.

Yes, but only with the consent of the Company.

The income from Amusement with Prizes (AWP's) and Skill with Prizes (SWP's) machines and Pool Tables is shared on a 50/50 basis after rent.

No. We will provide you with an approved list of suppliers, from which you can choose the machines for your pub.

When you take over a tenancy the staff that employed in the business transfer and are entitled to work for you under the same terms and conditions as the previous employer under the Transfer of Undertaking (Protection of Employment) Regulations 2006 (TUPE). The outgoing tenant should provide you with all details, including rates of pay, hours worked etc.

What support can I expect from Charles Wells?

We have put together a wide ranging support package to help ensure that you are successful, particularly in the first twelve months of the business. These include:

• Accountancy package with MSLTA (compulsory)
• Agreed preferential terms with insurers
• Marketing support from the Pub Company marketing team
• Health & Safety information
• Licensing information
• Training
• Comprehensive induction programme
• Technical services - on site training and equipment maintenance
• Human resources - advice on HR issues
• Central customer support unit to answer and resolve day to day issues

You will also receive support from a dedicated Retail Development Manager who will visit you regularly to discuss your business and will be able to draw on additional assistance (for example menu and wine list planning and interior design) from the Charles Wells Business Support package.

This is an estimate of the capital required to enable you to take the tenancy and run your own pub business. It includes:

• Trade Fixtures and Fittings
• Security Bond
• Stock and Glassware
• Administration fee (eg legal agreements and licensing transfer)
• One months rent in advance
• Valuation fee
• Working Capital
• Training as identified

Capital requirements vary from as little as £10,000 to £70,000 dependant on the style of pub operation, existing inventory and the type of agreement.

You will get money back for the fixtures and fittings (as valued on leaving) as well as the security bond and stock and glassware. If there are any debts outstanding with the Company for your Trade Account, for example, this will be deducted from your entitlement.

You will need to employ an Independent Valuer who will do this on your behalf. We can supply names and addresses if you wish.

Charles Wells Pub Company plans Capital Investment well in advance and is keen to invest in businesses that will show good return for both Licensee and the Company. Once you have established yourself in the business, you should discuss any future investment ideas with your RDM. Please remember that the investment process will take considerable time from the conceptual stage to completion. You will almost certainly be required to invest jointly with Charles Wells, normally to improve the standards of the fixtures and fittings.

Your main contact will be your RDM who will call to discuss business issues with you on a regular basis. Day to day contact regarding general issues will be with the Customer Support Unit. Other people visiting will include directors, draymen, technical services and other support departments.

The financial support package we supply should ensure you do not have financial difficulties, but if the situation arises you must discuss the position with your RDM who will endeavour to assist you to address the problem. The earlier you identify potential problems, the more your RDM will be able to do to help you.

Under certain circumstances, and for the right people, we are prepared to consider lending part of the capital required. At the very least you will need enough cash to buy the stock and glassware and pay for the security bond.

Yes. We have 3 schemes, details of which will be provided at second interview.

What sort of income could I expect to generate?

Providing a straightforward answer is very difficult because there are so many influencing factors, not least the performance of the business operator. However, completing a forecast profit and loss is one of the pre-requisites before a candidate can be considered for a Charles Wells pub and this should provide a reasonably accurate figure.

Download your copy of our frequently asked questions here.