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Everards has been working with business owners using tenancy agreements for over 170 years and is confident tenancies work well for them and their business owners.

Taking on a tenancy means you will not own the pub, you will rent it from the pub owner (e.g., Everards), and you will be the business owner. You will manage every aspect of the business from staff, menus, events, drinks range and everything in between - with as little or as much support from the Everards team as you need.

At Everards, we offer a three-year tenancy agreement which is protected by the Landlord & Tenant Act. This means that if you have kept to the conditions of your tenancy, you can keep re-signing every three years, so the ball is in your court if you wish to stay or not unless you break the terms of the contract.

On the rare occasion we should not grant you renewal then you will be entitled to compensation unless you have breached the terms of your tenancy. There is a six-month notice period at any point should your situation change, and you need to exit the business.

Tenancies are quite often ‘full tie’, which means that you have to buy all of your stock from the pub company directly. Everards, won’t make you commit to this, with us you would have a partial tie, which is the standard Everards tenancy agreement and includes an agreement for you to purchase certain products only from Everards, we call this the “supply agreement.”

The supply agreement is typically, all draft and bottled beers and ciders and cellar gasses. Everards supply award-winning ales as well as most leading beer brands in the country. You then have the freedom to purchase products like wines and spirits from them too, or from a supplier of your choice.

As part of the agreement, Everards also share repair responsibilities for the property. Generally, Everards will be responsible for repairs and decoration to the outside of the pub while you would be responsible for repairs and decoration to the inside of the pub.

Some breweries – like Everards – will support with refurbishments as part of your tenancy agreement and have ongoing schemes to refresh buildings internally and externally every 5 years.

We recognise, that keeping the pub looking its best, supports our business owners in offering the best trading experience for their customers. In addition, we will protect our freehold asset by ensuring it is repaired and maintained, so if your roof leaks, for example, the Everards property team would support the repair. This is funded by Everards and not recharged to you.

To calculate rent, Everards estimate what they believe to be the Fair Maintainable Trade (FMT) that can be achieved at the pub by a Reasonably Efficient Operator (REO). 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, We 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.

There are many pub operators and types of agreements in the marketplace including freeholds, managed houses, leaseholds, managed partnerships and tenancies. We recommend you do some research into the advantages and disadvantages of each, to help you decide which one is right for you.

Everards love all things hospitality and if you want the freedom of working for yourself, with the opportunity to make a great living, then this may be just what you are looking for and a tenancy with Everards is a great option.

Want to find out more? Call the team on 0116 4260 for a chat.