Agreements

Our Agreements

We offer a number of flexible agreements that best meet the needs of our tenants and are constructed in clear and plain English:

The Brains 3-year Tenancy Agreement

The key elements are:

• The agreement is granted for a term of 3 years and is protected by the Landlord and Tenant Act. This legislation is designed to protect tenants and conveys a right to renew your agreement when it expires, or to be compensated for termination, as long as the tenant has complied with the terms of the agreement. There is no cooling-off period once the agreement is signed.

• There is a contractual trading tie for all drinks, including a full range from Brains’ award-winning beer portfolio. The tie extends to all beers, lagers, ciders, wines, spirits and soft drinks, in large pack containers, bottles and cans.

• There is a shared repairing obligation. In essence, Brains retains responsibility for the structure of the building, whilst the tenant is responsible for maintenance, decoration and repair of non-structural items, as well of course, for the way that the business is presented.

• The 3-year tenancy agreement is assignable (saleable) after the first renewal. Brains retain the right to ensure that any ingoing tenant meets the same selection criteria described within this Code of Practice.

• The agreement cannot be sublet.

• The rent agreed at the outset will be adjusted annually in line with the movement of the Retail Price Index.

• As part of the business arrangement Brains will insure the pub. The premium relating to the pub will be recharged to the tenant.

• All other business insurances will be the responsibility of the tenant. We provide our minimum cover requirements and the details of our preferred supplier for this service.

• Whilst the tenant will be tied to a machines supplier, the value derived from this arrangement will not form part of the shared profit (‘divisible balance’) equation applied to the rental calculation.

• The ingoing cost for this type of agreement will vary, but will include stock and glassware, fixtures,
fittings and bond.

• Our usual terms of trading are two weeks’ credit.

DOWNLOAD A COPY OF THE 3+3 TENANCY AGREEMENT HERE

Leasehold Agreement

The main terms of the lease that differ from the 3-year tenancy agreement are;

• The lease agreement can be granted for 10, 15 or 20 years and is protected by the Landlord and Tenant Act 1954 – subject to the exclusions within the Act.

• The lessee will be responsible for the maintenance and repair of the building. This arrangement, known as a ‘Fully Repairing and Insuring’ (FRI) lease, means that as part of our negotiations the lessee will be required to carry out a structural survey in order that they can accurately appraise their future liability.

• The lease agreement is assignable after a 2 year period. We do not require the provision of an Authorised Guarantee Agreement. This means that upon a successful assignment of your lease your liabilities will end.

DOWNLOAD A COPY OF THE 20 YEAR LEASE HERE

Tenancy at Will

A ’Tenancy at Will’ is a short-term arrangement generally used to allow occupation whilst terms for a tenancy or lease are being agreed. Terms may vary dependent on circumstances. This agreement is not protected by the Landlord and Tenant Act. The Code of Practice does not apply to this type of agreement.