Punch unveils new lease deal

Punch is to launch a new single agreement for licensees that will replace all of its other existing tenancy and lease agreements.

Under the terms of the new "modular lease", licensees will be able to choose the length of agreement from three to 30 years and could have an option to go free of tie on every product except beer.

The move is the latest in a long line of measures designed to improve Punch's image and its relationship with its licensees.

Deborah Kemp, Punch property and development director, said: "This isn't just about launching a new agreement, it's about a new approach. It is really encapsulating everything we do into one document."

Agreements with newcomers will include a "break clause" after a year, where licensees can walk away. Some licensees will be able to choose who takes responsibility for pub repairs. In some circumstances licensees will be released from the tie on machines.

Rent will reflect the package of benefits licensees choose.The new single Retailer's Agreement comes after months of consultation with Punch licensees.

Ms Kemp said: "The principal thing is flexibility. It is also important the two parties initially focus on the business opportunity rather than just the rent figure." The company said it intended to be very open in discussions, especially on rental figures, and business relationship managers (BRMs) would concentrate on striking the right deal for a particular pub.

Punch is currently training up its BRMs and plans to go live with the new Retailer's Agreement after Easter in both the Punch and Pubmaster estates.

Punch promises 'fairer' rents​

Punch says its new single Retailer Agreement will be the most accurate ever in getting rents right.

Property and development director Deborah Kemp said: "Pub companies have been good at under-assessing pubs at the top end of the market but over-stretching the lower end pubs.

"This agreement will help us to understand pubs more accurately than ever before. It will allow us to be much fairer."

Punch has devised a business assessment model aimed at analysing every possible income stream and dynamic of a pub. BRMs will be charged with understanding this intimately. "The aim is for the process to be completely transparent," said Ms Kemp.