Tenancy &
Leased Agreements
Let’s talk Tenancy!
A pub tenancy refers to a legal arrangement between an individual or business (the tenant) and a pub company or brewery (the landlord), allowing the tenant to operate a pub business on premises owned by the landlord.
There are different types of pub tenancy agreements, but they generally involve the tenant leasing the pub premises, often with living accommodations, and running the pub business independently.
The tenant is typically responsible for day-to-day operations, staffing, purchasing, and the general management of the pub. In return, the tenant pays rent to the landlord, and there may be additional financial arrangements, such as purchasing beer and other products from the landlord.
Pub tenancies can vary in terms of the level of support and services provided by the landlord, and the agreements are subject to negotiation between the parties involved. This arrangement allows individuals to enter the pub industry with the support of an established pub company or brewery while maintaining a degree of autonomy in running their business.
Tenancy agreements can differ widely in the level of upfront investment needed, typically an ingoing cost can be anywhere from £5k - £100k.
The Lease Lowdown!
A pub lease is a legal agreement that allows an individual or business (the lessee) to operate a pub on premises owned by another party (the lessor). The pub lease is a contractual arrangement that outlines the terms and conditions under which the lessee can use and manage the pub space for a specified period.
Building Goodwill
Unlike a tenancy, a lease typically involves a more extended commitment and may grant the lessee greater control over the business. Typically, a pub lease allows the lessee to build good will into their business (like equity in a house) this good will can then be released at the point the lease is sold on. Pub Leases usually require significant upfront investment!