New Pub franchise

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I posted this on Arena before I found this forum. I am not sure where it should be so I am posting it here too ! - thanksHi all I am putting a...

I posted this on Arena before I found this forum. I am not sure where it should be so I am posting it here too ! - thanks

Hi all I am putting a business plan together for a pub 'franchise' (new full repairing lease of existing wet-only managed house + tie on ALL drinks + 5% of turnover + £10000 bond + 50/50 split on machine profits) and being new to the pub game wondered if you could give me a few pointers.

They are asking for rent in the range 12.9% - 15.5% of current turnover. This is similar to my existing café/restaurant business (14%) so doesn't sound too bad - is this reasonable for a pub rent?

The tie on all drinks is bad, but the prices seem to be about 20-40% cheaper than the ones quoted in the 'Wholesale pricing for products' thread. Is this what should be expected for a 'franchise' deal ? This apparent discount does cancel out the 5% turnover charge, but what you gain on the swings you lose on the full-repairing roundabouts (!)

The selling agent said that TUPE will apply to all current employees. I haven't seen the contract yet but as the business is not being transferred as a going concern ( I am buying F&F ) surely this is not the case - or wouldn't be in other businesses. Is there precedent for this situation in the pub business ?

If you can offer any useful advice then I would be extremely grateful .

Thanks in advance Jez

Jeremy Dennett

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