Enterprise Inns Plc is one of the largest leased and tenanted pub company's in the UK. It formed in 1991 with just 368 pubs and floated in 1995. Their estate of over 6,000 pubs is spread throughout England and Wales.
With some truly great opportunities available on flexible lease and tenancy agreements they really have something for everybody and provide a great way to get into running your own Public House.
Frequently Asked Questions
Q. What is the Minimum Capital Required?
Minimum Capital Required is the minimum level of funds that an applicant needs to take on a particular site. It is made up of a number of elements, which are listed below: -
Inventory Value - our estimate of the likely value of all the fixtures and fittings that are in the pub, which the retailer needs to acquire.· Stock and Glassware - a retailer will need to buy this in order to run the pub. This will be valued and purchased on the day of occupation. Security Deposit equal to one quarter of the annual rent (subject to a minimum of £6,000).· Rent in Advance - one months rent is payable in advance.· Fees and Costs - this includes stocktaker's fees and licensing costs.· SDLT - Stamp Duty Land Tax, in the case of a lease, this is based on the length of the lease and the level of rent.· Working Capital - this is for when an operator goes into the business and is money they would use for everyday costs i.e. buying stock, paying wages, paying bills etc. It will vary but usually 1 to 2 weeks of expected turnover would be reasonable.
Q. What is the Enterprise Inns lease agreement?
A lease is an agreement available in terms of 5, 10, 15 or 20 years. It is a protected business agreement with security of tenure where there are statutory rights to renew at the end of the contractual term. It is normally tied for all beer, cider, FABs, wines, spirits and minerals. Discounts schemes on tied products are available. Consent is required in relation to gaming machines subject to a share arrangement with an approved gaming machines supplier. The Retailer is responsible for all non structural repairs. Rent is subject to annual indexation by reference to RPI and a five yearly open market rent review, which can move the rent upwards or downwards. After an initial 2 year period the agreement is assignable (you can sell it) subject to obtaining the consent of Enterprise Inns.
Q. What is the Enterprise Inns tenancy agreement?
A Tenancy is a shorter form of agreement available for lets of between 1 and 5 years. It is often excluded from any security of tenure and expires on its contractual expiry date. It is normally tied for all beer, cider, FABs, wines spirits and minerals. Discounts schemes on tied products are available. Consent is required in relation to gaming machines subject to a share arrangement with an approved gaming machines supplier. The Retailer is responsible for day to day maintenance. Rent is subject to annual indexation by reference to RPI. The agreement is non assignable.
Q. How can I work out the historic trade level?
You may want to look at the barrelage figures supplied, understand the area that the pub is in and make a judgement as to what you would think the pub is likely to take over time. It would be advisable for a potential tenant to speak with an accountant that has experience in the licensed trade. This is all part of the "homework" that the potential lessee/tenant needs to do. Once their research is underway, this will form part of their business plan.
Q. What is a brewery barrel?
An imperial barrel is the brewers benchmark term used in the licensed industry to quantify beer volume. An imperial/ brewers barrel is 36 gallons (288 pints). Please note it is extremely rare for a pub to use a real brewers barrel, more likely they would use containers of smaller measures i.e. 9 gallons, 18 gallons, 11 gallons or 22 gallons.
Q. What happens after I have submitted my application form?
Upon receipt of application forms you will be contacted initially by a member of Fleurets staff to confirm receipt. We will then process your details and you will then hear from the landlord or Fleurets confirming your interview times as soon as possible.
Q. What is a business plan?
A good business plan will include 4 elements: -
- Strength Weakness Opportunity and Threat analysis.
- Budgeted cash flow forecast.
- Budgeted profit & loss accounts.
Q. Where do I send my application form?
To your local Fleurets office