Brains

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, limited company or partnership. 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 the freedom to run their own business, but retaining the additional support of an experienced pub operator and brewer.

SA Brain & Company has a range of agreements designed to suit all requirements.

They have different features to appeal to a wide spectrum of operators, dependant on their personal circumstances:-

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

• SA Brain responsible for external redecorations

• Rolling three year agreement with tri annual rent reviews and index linked rent

• Notice 12 months prior to the triennial rent review

• Assignable after 3 years

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

• 20 year lease duration

• Assignable after two years

• Inventory, deposit, stock, glassware and legal / admin fees applicable

• Full repairing and insuring

• Rent review at 5 years

• Indexed linked rent

Yes, we provide a one stop shop for all products.

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. We will share these calculations with you.

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 all or part of the training courses which constitute our Brain-Power Training Programme and will agree any additional training requirements with you before you take the pub.

For tenancies, SA Brain is responsible for the decoration of the exterior. For longer leases, Licensees will be responsible for full decoration of the premises.

Your lease includes a ‘Schedule of Repair Responsibilities’ for your pub. In short, S.A. Brain retains responsibility for the main structure of the building. Licensees are responsible for all minor repairs as detailed in the Schedule. For longer leases, repair responsibility shifts towards the lessee. Repair responsibilities differ by agreement type. The BDM will discuss these with you before you make a commitment.

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 are 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 relevant details, including rates of pay, hours worked etc.

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

These include:

• Accountancy package with Milestone Ltd

• Marketing support from our marketing team

• Health & Safety information and full compliance package

• Licensing information

• Training – a comprehensive programme is available

• Technical Services – on site training and equipment maintenance

• Human Resources – advice on HR issues

• Business Support – answer and resolve day to day issues

You will also receive support from a dedicated Business Development Manager who will visit you regularly to discuss your business and will be able to draw additional assistance, eg menu & wine list planning, stock taking service, and interior design, from the Brains Business Builder.

This is an estimate of the capital required to enable you to take the tenancy and run your business.

It includes:

• Trade Fixtures and Fittings

• Security Bond

• Stock and Glassware

• Administration fee (eg legal agreements & 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 stockand glassware. If there are any debts outstanding with the Company, for your Trade Account, for example, this will be deducted from your entitlement. Ourlessees will also benefit from the ‘goodwill’ generated during their time in the pub.

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

S A Brain 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 BDM. 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 S A Brain, normally to improve the standards of the fixtures and fittings.

Your main contacts will be your BDM who will call to discuss business issues with you on a regular basis. Day to day contact with regard to general issues will be the Business Support Team. 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 BDM who will endeavour to assist you to address the problem. The earlier you identify potential problems, the more your BDM will be able to do to help.

Under certain circumstances, and the for right people, we are prepared to consider lending part of the capital required through Barclays plc, our business partner. At the very least you will need enough cash to buy the stock and glassware and pay for the security bond, you will also need an amount of working capital.

The Licensing system has undergone some radical alterations and you must obtain your NCPLH qualification before you can run a pub. More specific details are available on our website, SA Brain are a registered BII trainer and run regular courses at the Cardiff Brewery.

Yes. Details of which will be provided at second interview.

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 & loss is one of the pre-requisites before a candidate can be considered for an S.A. Brain pub, and this should provide a reasonably accurate figure.