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Want to know how your rent will work if you take on a pub with Everards?

To calculate the rent, Everards estimate what they believe to be the Fair Maintainable Trade (FMT) that can be achieved at the pub. FMT is the sales a pub can be expected to achieve, considering its position in the marketplace (e.g., is it surrounded by a large amount of housing, is it in a rural location etc), competition, demographics, facilities (e.g., does it have a catering kitchen, car park etc) as well as several other variables.

This means, should your pub be highly successful, the rent you pay is only based on FMT and not on the trade you develop over and above that measure. In turn, if a pub is operated poorly and its sales are below what can be reasonably expected, then the rent is still based on the FMT figure.

As part of the application process, Everards will discuss the rental level with you and provide you with the information (in the form of a P&L showing their estimated calculations and assumptions), to help you complete your business plan.

Every pub company works differently, so it’s essential to ask how your rent will be calculated and what support is in place if you are unable to meet your rent payment. You’ll also want to know what happens if your pub is trading exceptionally, and how and when you will see any rent increments.

Make sure to ask these questions and gain as much knowledge and clarity from all pub companies that you are considering working with in order to make sure your business plan stacks up.

Want to chat further with one of the team? Call us on 0116 201 4260.