You run the pub as your own business. You pay us rent and buy your draught and packaged beer, lager, cider, stout and flavoured alcoholic beverages from us. The people that work there are your employees.
We operate a number of agreements:
1) Tenancy at Will which is a short term agreement
2) Our 1 year rolling agreement which is automatically renewed every year
3) Our 3 year agreement
To invest in your own business you will need some money, known as ‘ingoings’, which comprise of:
1) A security deposit that varies dependent on the pub from £3000 – £6000.
2) Money to purchase the fixtures & fittings (e.g. tables, chairs, curtains etc.), and stock and glassware.
3) Working capital for running costs after you have moved into your pub.
The fixtures and fittings are independently valued prior to you going into the pub. The Valuer’s fee is usually split between the tenant and Hydes, however you can appoint your own Valuer (subject to our approval) in which case you would pay the full Valuer’s fee
We assess the business potential of a pub based on fair maintainable trade (FMT), which is how profitable that pub is likely to be when run by a reasonably efficient operator.
The company will advertise the rent for the property (or will disclose on application), which comprises an agreed percentage of the potential net profit known as ‘divisible balance’.
Your rent is subject to an RPI increase each year on the anniversary of your tenancy. In the 3rd year you will undergo a full rent review.
No, you must buy draught and packaged beer, lager, cider, stout and flavoured alcoholic beverages from us (known as the ‘brewery tie’) but you are free to purchase wines spirits and minerals from wherever you choose.
As a Hydes tenant you can also boost your buying power by using our suppliers, and take advantage of Hydes Preferential Supplier rates.
Hydes is responsible for in general terms the exterior and structure. The tenant is responsible for the interior plus some other routine maintenance/minor repairs. and you would be responsible for everything else.
We will also insure the building free of charge and you will be responsible for all internal insurance incl fire, theft, employee and public liability.
We have also appointed a nominated insurer who will provide you with the appropriate level of cover at a very competitive price. Should you be able to source similar level of cover more cheaply, we will reimburse the difference.
Yes, and to ensure you get the right support in this area, we require you to use one of our company nominated accountants who are familiar with licensed retail operations.
For the 1st year of your agreement, we will operate what is known as ‘open book accounting’ where by having access to your management accounts, we ensure that we tailor support to your business in ways that will truly make a difference.
This is different for every pub, but from the start we will provide you with a set of accounts that will give you an indication of how much your pub could potentially make for you.
We will provide you with all the training and support necessary to help drive your business but it is up to you to make it work.
Click on Current Vacancies at the top of the page and register your details and we will contact you to discuss your application in more detail.
If you are new to the industry click on the button below to the BII’s Pre Entry Awareness Training course (PEAT) which will give you more information about entering into a tenancy agreement.