Hall & Woodhouse scraps rent reviews
Hall & Woodhouse is scrapping rent reviews for tenants on its new agreements.
Tenants would also get a 67% share of the machine profit and greater discounts in the new three-year Business Partnership Agreement.
Under the Agreement, rent for tenants - now called "business partners" - would be adjusted annually in line with inflation and could reduce if inflation is negative.
"What's really nice about this new agreement is that there will no longer be a rent review," the Dorset brewer said.
"If the business partner wishes to continue for a further three years, then the rent is linked to inflation only, which then gives them the freedom to plan for the future, safe in the knowledge that they're not going to be penalised for their success.
H&W said a deposit of £7,500 will be required, alongside the fixtures and fittings payment, to secure the tenancy.
A first-year support package is also promised. It includes a pre take-over meeting with the area manager who will "provide detailed information on everything required prior to getting started".
"During months one to three, meetings are conducted on accountancy and stocktaking, which will then move to a quarterly basis for the remainder of the year."
H&W will organise mystery shopper visits to the pubs, and give feedback on the findings, for the first four months of the business.
A "full business review" is promised six months into the start of the Agreement.
An area surveyor will also be on hand to ensure maintenance and repairs are carried out effectively, and an energy consultant will visit on the first day of business.
Adrian and Carol Beer from the H&W's Gatwick in Horley, Surrey, have been with the brewer for three years and will switch to the new Agreement in the next few months.
Carol said: "This Agreement will enable us to make more profit through the pub and the fact there is no rent review is a fantastic opportunity for us and all other business partners to grow the business without incurring a rent increase."
Matt Kearsey, Badger Pubs director, said: "We have launched this new Agreement to support our business partners during these challenging times.
"By offering business partners support aimed at building their profits, I believe we make running a pub a desirable career/life style choice.
"Our Agreement has been compiled with the business partner in mind. We have taken the decision to remove the rent review to make it absolutely clear that we are committed to sustaining not penalising our business partner's success so that they can operate pubs in which we can all take pride."
