When entering into any new business there are many things to consider and a pub tenancy or lease is no different. At Fuller’s we believe that the investigations you carry out before starting your business venture are paramount to your success. In essence, the greater your knowledge, the more likely your prospects of making your business a success.
We strongly recommend that you obtain good professional advice from experts in the licensing trade such as solicitors, building surveyors, valuers, accountants and your bank manager. If you require help in sourcing a particular expert we will be happy to provide some recommendations.
We will provide you with trading history for the last three years where available, but you will need to determine the profitability of the pub yourself. In the case of pubs transferring from our managed division, we will also supply the last 12 months’ turnover figures. If you are successful in reaching the interview stage, your projected figures can be fully discussed with the management team. At that interview a shadow profit and loss (P & L) account, which will have been prepared in good faith based on reasonable assumptions, will be available to you.
The shadow P & L report we provide is only a guide. As part of your business plan you will be required to produce a P & L account and cash flow forecast. It is vital you should take the advice of an accountant when preparing these and base your rental offer to Fuller's on them.
You will, by law, be obligated to take on the staff of the pub you are entering and it is important that you take advice as to your duties under the transfer of obligations regulations (T.U.P.E.) relating to the current staff of the pub. Your solicitor should be able to help on this matter.
You must also check to see if there are any planning restrictions or statutory notices outstanding. The advice of a solicitor and surveyor will be invaluable in answering these points. Fuller’s holds the premises licence and we will provide you with a full copy, listing any trading restrictions on the premises.
If you are taking on a leased property you will normally be taking on full repairing obligations for the premises and it is, therefore, essential you obtain the advice of a qualified building surveyor who understands the implications of the full repairing terms and what will need doing to the property over its term.
Fuller’s has a policy of bringing each of its leased properties in to good order before letting them on the open market, but you need to remember that your obligations are not waived because you took the building on without knowing its condition.