The Business Partnership Agreement is a legally binding document that defines the business relationship between you and Hall & Woodhouse. The agreement will be produced following our formal offer of a pub to you and needs to be signed prior to you taking on the pub. Key features include:
The Business Partnerships Agreement is protected by the Landlord and Tenant Act. In return ffor the use of our pub for your business we charge you rent. This is an amount set for the term of the agreement and is agreed before you take on the pub. We will show you exactly how we have calculated the rent for your pub. The rent is not subject to a review and Is only adjustable annually in line with RPI (if RPI is negative then your rent will be lowered in line with RPI)
If you want to renew your agreement for a further three years the rent is linked to RPI only. This gives you the ability to plan for the future with certainty and means you are not penalised for your success.
Taking on a pub with Hall & Woodhouse is a low-cost way to set up your own business but it does need some investment from you. As well as a returnable deposit of £7,500, you will also need to buy stock, glassware, crockery and cutlery. On top of this you will need to have some working capital to help you run your business.
You will also need to purchase the pubs fixtures and fittings from the previous operator. Because we understand how important cash flow is to any new business, we have the ability to provide loans to new Business Partners for the purchase of fixtures and fittings. Please speak with a Business Development Partner during your interview for further information.
If you choose to leave your business, you will be able to sell the fixtures and fittings to the ingoing Business Partner as well as the glassware and stock, and we will return the deposit with interest, minus any outstanding monies owed to Hall & Woodhouse.
As our Business Partner you agree to purchase all beers, ciders, wines, spirits and soft drinks through us. This is sometimes referred to as the ‘tie’. The supply agreement helps us develop and brew our award-winning ales which are only available in cask format in Hall & Woodhouse pubs. It also helps fund the support we are able to offer you. This includes investment in our pubs, support from our Business Development Partners, marketing materials and much more. The supply agreement also makes it easier for you to order your stock; it means one call, one order, one payment and one delivery backed up by our excellent Distribution Team, Beer Quality Ambassadors and Technical Services Team.
As an independent family brewer, the Drinks Tie is fundamental to our business and it allows us to provide the enhanced level of support that Hall & Woodhouse Business Partners receive compared to a free trade pub. The Drinks Tie also allows us to invest in the pub estate and further develop our product range for our mutual benefit. We believe passionately in the quality of our cask ales and uniquely within the industry, we only sell them in our own pub estate. We believe this gives our pubs a point of difference and consequently, we do not allow guest beers to be purchased from third party suppliers.
Business controls are critical during the first 12 months so we require you to use our approved accountancy and stocktaking services. The information they produce is shared with us so we can support you in developing and managing your business.
At the start of your agreement an annual total volume target will be set for all drinks products. At the end of each year if you exceed your target you will receive a £1,000 credit to your trade account.
The responsibility for repairs falls to both Hall & Woodhouse and you. You will be given a detailed breakdown of who is responsible for what before your agreement begins. However, as a rough guide, we are responsible for the structure of the building (eg if a window frame is rotten) and all non-structural repairs will be your responsibility (eg if a window pane breaks). You are also responsible for interior decoration and keeping the gardens and grounds attractive.
Gaming machines include Amusements with Prizes (AWP), Skills with Prizes (SWP) and pool tables. You choose your machines from our list of nominated suppliers. Machine income is shared after rent and duty is paid. 67% of the profit goes to you, while we receive 33%. We manage the machine suppliers on your behalf.
We may occasionally offer some of our public houses on a lease agreement. Please contact us directly for further information.
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