THE WAY BUTCOMBE WORKS WITH YOU - Butcombe Brewery
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THE WAY BUTCOMBE WORKS WITH YOU
THE WAY
BUTCOMBE WORKS
WITH YOU
In 1978, Butcombe Brewing Co. began.
It was a time of cultural, social and political
change, soundtracked by bands full of spit
and anger riding the crest of the punk wave.
Margaret Thatcher took the Tory leadership,
the IRA waged war, the Yorkshire Ripper cast
a long shadow over the North and the meaning
of life was revealed as the number 42.
We shut out the world and made beer.
STILL ORIGINAL
You see, at that time, no one was risking it all
starting a traditional brewery, making simple,
premium, easy-drinking ale. To do so was an act
of defiance. Or madness. But, 40 years later,
by staying true to our beliefs – and with a lot
of hard graft – it looks like owning a resolutely
traditional brewing company isn’t such a crazy
idea after all. By going against the grain,
to work intimately with it, we made our own
statement with every pint. And what was
true then is just as important today.
We all share a passion of creating warm,
hospitable pubs. Every last one of them is
individually unique and proud to
pull a pint of our famous beer.
We are looking forward to welcoming yo
to our team and can’t wait to see the
great job you do with your tenancy.
THE PUB Adherence to the COP
is a binding term of all
an incumbent Business
Partner we will by means
SECTOR our new tied tenancies
and is therefore legally
of a side letter ensure the
COP transfers as part
enforceable. The COP is of the sale, unless the
The way Butcombe will binding on both Butcombe pub transfers to a pub
work you is aligned to the and its Business Partners operating company where
requirements in the Pub and lessees and may be 500 or more pubs are
Sector England & Wales used in pursuance of a owned; this will result in the
Code of Practices (1-499 claim of non-compliance. pub and Business Partner’s
Tied Pubs) (COP) rights being under statutory
Tenanted and Leased Our existing Business legislation.
which can be found on Partners may also have the
ours and the British Beer benefit of the provisions Alternatively the provisions
Pub Association websites. of the COP by invoking an and benefits of the
open and unlimited offer COP can be relied upon
The COP places a number accepting its terms. Signing if a tenant initiates a
of obligations on us as a an agreement at any complaint through the Pub
company as to how we will time can do this and your Independent Conciliation
work with you. Operations Manager (OM) and Arbitration Service
will be pleased to assist in (PICAS) or commences
We offer other services and this respect. court proceedings with
make additional obligations reliance on the provisions
to the COP which are If Butcombe sell the of the COP.
covered in this document. interest of property with
OUR your agreement until we
have received a signed
resulting in potential quality
issues. This will be discussed
BEFORE YOU least five days before you
have your final interview
range from £10,000 or 25%
headline rate. You will also
AGREEMENT offer letter from you. Our
agreements do not have a
and where appropriate
a similar or appropriate
TAKE AN with us. Further information
on PEAT is provided by
need an amount of working
capital to cover initial
cooling off period. substitute product will be AGREEMENT the British Institute of valuation and training fees.
offered if required. Innkeeping (BII).
All of our agreements
are protected under the The Agreement Tie WITH US We will explain the
valuation process and
Landlord and Tenant Act Maintenance In order to sell alcohol
There is a full tie for beer, provide you with details of
1954. We will advise you of Responsibilities within or authorise the sale
cider, minerals, wines and nominated independent
your Agreement Professional advice of alcohol you need to
the remaining years on the spirits. We do not offer licensed property valuers.
lease if Butcombe does not complete the National
free of tie or partial free of With a Tenancy Agreement, It is strongly recommended Butcombe is not involved
own the premises and the Certificate for Personal in the valuation process
tie agreements. We brew Butcombe is responsible that you seek appropriate
procedure for termination Licence Holders course and is not responsible
our cask-conditioned ales, for the structural repairs, and good business advice
when the lease comes to (APLH). Once you have for the condition or
lager and cider. We can also including the roof and from various professional
completed and passed the replacement of any items
an end. stock a wide selection of walls. Business Partners people such as an
course you will be required purchased. Your valuer will
national and international are responsible for all accountant, surveyor, check the suitability of all
We have a small number of to obtain a criminal record
lagers, keg beers and minor repairs and internal solicitor and bank manager. inventory items and value
full repairing leases that we check (CRB) upon receipt
minerals. We also supply an decorations. Business You will be asked to confirm accordingly. Fees for the
let to small companies. of which you can then
extensive range of wines Partners are required to that you have done this valuation vary and are paid
apply for your Personal
and spirits. All available put and keep in good during your initial interview. by you but are typically 5%
Once terms have been Licence from your Local of the agreed valuation.
products are detailed in our repair all areas within
discussed we will write Licensing department.
Tenanted Trade Price List. their responsibility. A full There are trade
to you with a formal organisations that provide Staff
schedule of responsibilities Start Up Costs
offer of the tenancy and We reserve the right to tools and information for There may be members of
is provided.
include a copy of the restrict supply of any business planning including Ingoing costs vary staff that have protection
Tenancy Agreement. You product if there is a the Association of Licensed depending on the pub for of employment under the
will not be asked to sign concern on the rate of sale and Multiple Retailers which you have applied. Transfer of Undertakings for
(ALMR), British Institute Typically a smaller tenancy Protection of Employment
of Innkeepers (BII) and (TUPE) regulations. The
will require an investment
effect of this is your
the Federation of Licensed of between £15-20k. Larger
legal obligation to take
Vituallers Association houses may require funds on existing staff under
(FLVA). up to £60k. You will need their existing terms and
to purchase the fixtures conditions. The legislation
Training and fittings, stock and allows for redundancy in
glassware at valuation. In specific circumstances but
Before taking a tenancy
addition there is a Security you will need to consult
you must undertake to with an employment
Deposit which is held by
complete the Pre-Entry specialist for advice before
Butcombe during your
Awareness Training (PEAT). the start of your tenancy.
tenancy. The deposit will
This must be completed at
WHAT WE turnover or profits. The
gross profit calculation will
Pub Information
We will provide full details
GIVE YOU be based on our current
tenanted trade price list
of the pub to include the
BEFORE AN including discounts.
extent of areas that form
part of the tenancy trading
AGREEMENT This is not a substitute for a
business plan. We strongly
area together with details
of any material changes to
WITH US advise all prospective the commercial conditions
Business Partners and and planned capital
their advisors to liaise with developments in other
Shadow Rent Assessment the outgoing Business Butcombe properties within
Partners to seek more the locality.
You will be provided at the detailed information. In
start of our negotiations such circumstances we can Premises Licence
with a Shadow Rent only supply you with details Information
Assessment based on of the volume of beer and
our knowledge and A copy of the current full
other products purchased
assumptions of the Premises Licence will be
direct from the company.
trade for the pub. This given to you before the
We will in any event tell you
will be prepared by the start of your tenancy.
why we cannot provide you
Operations Manager (OM) The Premises Licence is
with any information that
and approved by the held by Butcombe and
you request from us.
Managing Director (MD). the Business Partner is
Your OM has received Benchmarking reports normally the Designated
appropriate training either are available from the Premises Supervisor; the
internally or externally Association of Licensed person responsible for the
in the preparation of a Multiple Retailers (ALMR: day to day operation of the
Shadow Rent Assessment. www.almr.org.uk) and business. The annual cost
It is not always possible to the British Beer and Pub of the licence is charged to
obtain the exact figures Association (BBPA: www. your trading account.
on turnover and operating beerandpub.com) ‘costs of
We will bring to your
cost from an outgoing running a pub’, which may
attention any restrictions,
Business Partner and any provide further assistance.
enforcement notices or
information we supply, or formal correspondence
Evaluation of the business
base our calculations on, regarding the licence of
prospects and profitability
is on the understanding which Butcombe are aware.
are a matter for you and
that this cannot represent
your Business Advisor.
any guarantee of trade,
Service Charge - We will write to let you history of the wholesale Price List information you receive to Performing Rights,
Maintenance Service know when new services beers and wines etc into monitor your line cleaning, Phonographic Performance
A full Tenanted Trade
Agreement (MSA are added together with the pub. beer quality, throughput Licence and Sky.
Price List will be supplied
the monthly and and yield by your OM.
There are many legal and We will provide you with the together with all products Open Book Accounting
annual cost. You will be responsible
insurers’ requirements details to access this and available. All our prices are
for the electricity to run
that you must undertake other information. available on our extranet You are required to sign-up
Dilapidations this system.
as part of your Tenancy to Open Book Accounting
We will provide you with Some of the products Payments for the first year of your
Agreement. We organise Machines
a report on the internal listed will receive discount, tenancy. This requires a
this for you through our
written details of which Payment for goods is
Property Maintenance decorations in the private You are not tied to new Business Partner to
will be provided at your by Direct Debit: goods
Department. At the start of quarters. The report will Butcombe for machines appoint a nominated
interview. delivered between 26th and
your tenancy we will provide include where possible but you must have written Accountant who will have
10th are payable on 25th
you with a service schedule photographs of all areas. Butcombe consent for any details, knowledge and
Deliveries of the month and goods
and agree a monthly We will try to ensure that machine on your premises experience of the licensed
delivered between 11th and
service charge. The service the accommodation Deliveries to our pubs are including pool tables, juke trade and its practices. We
25th are payable on 10th
charge includes, but is not is in good decorative normally made weekly. boxes and other ancillary will explain fully how Open
of the following month
restricted to, gas safety order at the start of your Delivery times will vary equipment such as pin Book Accounting operates.
allowing a maximum of one
checks, boiler servicing, fire tenancy. However, in some within an agreed time tables, bar billiard and Experience has shown
month or a minimum of 2
alarms, fire risk assessment, circumstances we will need window. Any delivery similar equipment. The that the first 12 months
weeks credit.
sewage treatment plant to agree with you a suitable issues or problems should income from machines will are crucial to the financial
and extraction canopies programme for this to be be reported immediately Rent is charged on 25th of be reflected in the shadow stability of the business.
cleaning. The service charge achieved and who will be to Butcombe and we will each month and becomes Profit and Loss account. Open Book Accounting
is reviewed annually. Full responsible for meeting advise of an appropriate payable by direct debit simply allows us to share
A Consent Fee is payable
details of items included in this cost course of action to resolve on 10th of the following and exchange information
which is currently £500 p.a.
the MSA are contained the problem. In exceptional month. The rent is charged over this period to try
Trading Information for each Amusement with
in our Maintenance & circumstances and where monthly in advance: for and ensure that you are
Prize Machine and £250
Service guide. Business Partners are example rent charged on operating the business in a
With the exception of p.a. for each Skill with Prize
consistently requesting 25th July would cover the financially viable manner. If
The services covered in the newly acquired houses, Machine. The fee is charged
second deliveries we rent the period from 26th there are concerns with the
MSA will be updated during Butcombe provides full monthly in arrears on your
reserve the right to July to 25th August. business we can identify
the course of your tenancy. and authenticated supply Trading Account. There are
charge for these. the problems and work with
no other charges for any
I-Draught you and your accountant to
other equipment such
resolve them.
You will have beer flow and as administration or
beer quality monitoring royalty fees. Property Insurance
equipment in your pub
Business Partners are Butcombe will insure the
called I-Draught. You will
responsible for all permits building at our cost, this is
be trained on how to use
and licences associated not recharged to you.
this equipment and the
with music including
During the first 3 months of Proof of Identity both positive and negative.
your tenancy the Financial
Your passport, driving Insurance Information
Advisor will visit as often
licence with photograph
as is required to ensure
and/or National Insurance You are responsible for
that you are fully confident
number will be required. insuring fixtures and
and conversant with the
fittings, stock, cash
financial aspects and
Business Plan on premises (including
controls of your business.
machines), loss of business
We will require you to
We strongly recommend and business interruption
complete a Business
that you have regular together with your own
Plan for your business,
extended stock takes every personal contents. Your
which should include
four to six weeks. insurance should also
estimations of income and
include employee and
related costs. It is strongly
WHAT WE recommended that you
public liability cover.
REQUIRE BEFORE take professional advice, The cost of insurance
both legal and business, will vary depending on
AN AGREEMENT when preparing this. the type of business. It is
The Royal Institution of important that sufficient
Proof of Funding
Chartered Surveyors (RICS) cover is taken for the full
Proof of finance is required provides advice on matters replacement value of the
at your initial interview to that should be considered inventory and not the
comply with current money when preparing a Business current value or the value
laundering regulations. Plan and we would strongly paid on the day of change.
You will also need to recommend that Business We can provide you with
confirm if the funds you Partners and their advisors details of insurers who
have available to fund refer to the guidance. specialise in the licensed
the tenancy are secured You should consult your trade sector. We will require
against an asset or subject Financial and Business a copy of your insurance
to a loan agreement. Advisor on the effects of policy and cover.
changes to the business,
DURING three year agreement we
will write and advise that
the company’s internal
procedure we voluntarily
YOUR your rent is due for review.
An appointment with your
agree that you can elect
for a referral through the
AGREEMENT OM will be arranged to PIRRS Scheme. PIRRS offer
visit your pub within the an accessible, independent,
following two months. As low cost rent review
part of their normal duties resolution service.
RENTS
they will have visited three
Upon jointly agreeing to
The rent for your tenancy months before any rent
resolve a rent negotiation
or lease agreement assessment is undertaken.
via PIRRS both parties will
is negotiated on an We will ask you for your
be required to renounce
individual basis taking into last set of Profit and Loss
any right to arbitration
consideration the location, accounts together with
or referral to original final
tie, current market trends details of current overheads
offers by signing a deed of
and fair maintainable trade and expenses in operating
variation.
based on the trade you the business. You should
would expect a reasonably advise us of any factors Business Partners and
efficient Business Partner that have affected your landlords are then required
to achieve. business. You may want to to contact the PIRRS
involve your Accountant administration team
Rent Reviews at Renewal with the discussion. We will to request the PIRRS
Rents are agreed at the provide you with a shadow information pack and
beginning of each three Profit & Loss Account/ application form.
year agreement or at Rent Assessment similar
Business Partners will be
rent review if you have to that at the start of your
asked to begin proceedings
a lease. We try to agree agreement. We would
by completing their PIRRS
a fair rent and disregard aim to complete our rent
application form and
personal goodwill, we negotiations one month
selecting their preferred
follow the Royal Institution before the rent review date.
independent valuer from
of Chartered Surveyors Butcombe supports the those nominated by
(RICS) guidelines when Pub Independent Rent the PIRRS Board.
negotiating rents. The RICS Review Scheme (PIRRS) www.pirrscheme.com.
guidelines are kept under www.pirrscheme.com
review and where changes We may share rent
through our membership
arise will be applied to all information, on request,
with the British Beer and
future reviews. which may be used by a
Pub Association (BBPA). In
third party in determining a
Approximately six months the event that any dispute
rent subject to appropriate
before the end of your cannot be resolved through
confidentiality.PROPERTY if we agree, make the PRODUCTS
application on your behalf.
Capital Improvement and We reserve the right to Guest Ales
Investment charge you the Local Guest ales are supplied
Business Partners Licensing Authority fee for through us. Business
Improvements: Alterations applying for the variation Partners are able to join
and improvements to the The fees are charged by our Guest Ale Programme
premises must be agreed the Local Authority and subject to achieving
in writing with Butcombe will vary depending on the sufficient sales of
as a “Licence to Alter” and public house. Butcombe own cask beer.
under no circumstances Some Licensing Authorities This is to ensure consistency
should be undertaken may charge a Late Night and quality of both
without full agreement and Levy for those public houses Butcombe beers and that
discussion with us. who have a licence to trade of other brewers.
Butcombe improvements: between Midnight and
Breach of the Tie
Where Butcombe undertake 6.00am (variable). There is
to carry out improvements a scale of charges and the The full tie is a fundamental
to the building and amount depends on the part of our agreements and
such improvements will Local Authority involved. any Business Partner who
have the potential to The charge is paid by purchases outside of the tie
increase and improve Butcombe and recharged risks a charge being levied
the trade, we reserve the to your trading account. for all out of tie purchases.
right to renegotiate the The charge will include an
rent to reflect the level Maintenance Surveyor administration fee together
of investment and the We have a Maintenance with a rate per barrel /
potential trade increase Surveyor and use external package for each purchase
that the improvements consultants/surveyors to made. Business Partners
will provide. We will agree look after our properties. also risk the forfeiture of
in writing with you any In addition we have their agreement. In the
changes in the rent before a dedicated Property unlikely event we are unable
the work commences. Helpdesk to take details to deliver over a prolonged
and deal with planned period, and a short
Premises Licence maintenance and term solution cannot be
Variations emergency work. provided, Business Partners
must obtain written
If you require to change or
consent from Butcombe to
vary the licence we may,
purchase elsewhere.Ullage Policy industry recognised training with whom you will have Website Financial Assistance your complaint within
within their first year. regular contact. thirty-five days unless
We have an ullage policy Websites are an important We recognise that through
an extension has been
for the return of Butcombe/ Your OM will visit regularly Sales and Promotions tool to communicate with no fault of their own
mutually agreed in writing.
Libration own beers. Credit depending on the needs of existing and potential some Business Partners
is not given on returns the business but normally You will have access to a customers. We have web may experience financial Pub Independent
that are out of date and this will be once a quarter. number of seasonal beer domain addresses for all difficulties. Our policy Conciliation and
contain less than 1/3rd of Their role is to assist and promotions which your OM our pubs. The address is to offer support and Arbitration Service
the original contents of the help you grow the business will discuss. They will also is available for your use assistance where possible. (PICAS)
container. Return of other and maximise the trading agree support activity to during the term of your The support may be specific
brewers’ beer is subject to potential and profit from promote your sales. tenancy subject to our or may involve support in In the event that you
their individual ullage return the business. jurisdiction. At the start of a number of areas. The have not been able to
All tenants have access to
policy details of which are your tenancy we will provide assistance will depend reach resolution of a
Normally the initial contact an online pub marketing
available on request. you with a website home on the problem being problem or dispute with
with your OM will be when toolkit to design and order
page containing basic experienced and the best us, after going through
you apply for your tenancy posters, banners, menus
Sediment Duty Allowance information on your pub. solution to deal with it. We our dispute procedure,
and discuss your business etc. The handling house will
This will be agreed at your will require copies of your or we have failed to
Our sediment duty plan. This plan will form charge you a fee depending
induction meeting. accounts, VAT and stock respond in accordance
allowance is 2.5% of the the basis for your future on the size and quantity
taking reports to enable us with the timeframe of
cask contents. This equates discussions when you take of material ordered. The You can build on the
to assess assistance. We our procedures, you may
to 1.8 pints per firkin. up your tenancy: your OM site also includes useful website to include
will respond within 35 days refer the problem to PICAS
Note other brewers will will formally review your tips on how to run and additional pages and
unless a further timescale is (www.picaservice.com).
have a different sediment business with you every organise promotions. information on your
mutually agreed.
allowance, but this should 12 months. Glassware is supplied by business through the Full details of the
be on the cask label. each brand owner, subject website provider. application process and
Your OM will be your link to availability, and can be COMPLAINTS the procedures to follow
with Butcombe and will We retain the services of
BUSINESS keep you advised and
ordered with your weekly
the website provider on Disputes Procedure
when referring a complaint
delivery or through to PICAS are available
& RETAIL informed of Butcombe your OM. your behalf and an amount from their website
We will acknowledge a
DEVELOPMENTS activity affecting your per month is charged. We
complaint providing the www.picaservice.com.
business and the have a Digital Marketing
complaint is made in
Operations trade generally. Manager who is available to
writing and addressed to
offer advice and training on
We will ensure all new OM During your induction we the Operations Director. We
website and social media
are appropriately trained will provide you with a will endeavour to conclude
activity for your pub.
and if required organise contact list of key personnelENDING premises and our licensee
is a sub Business Partner
Dilapidations
At the end of your
YOUR the term of the agreement
will not extend beyond the
tenancy a schedule of
AGREEMENT expiry date of the lease.
dilapidations for the private
accommodation will be
WITH US Surrendering Your provided within 4 weeks
of your notice. You will be
Agreement
required to attend to any
We do not have a cooling items on the schedule
Expiry of the Agreement
off period, however it is not before you leave and to
Butcombe is entitled to in our interest to insist a put the private quarters
serve a notice at least six Business Partner stays at into good decorative order
months before the end a pub any longer than is of no less a standard
of the tenancy stating absolutely necessary once a than that detailed in the
whether we require to take Business Partner has made schedule at the start
possession of the property up their mind to leave. of your agreement. A
as a managed house, for schedule of conditions is
Our tenancy agreements
redevelopment or if we not prepared for the trade
provide for notice to be
are prepared to negotiate areas but on termination
served by the Business
with the Business Partners we would expect the
Partners not less than six
a further term. If we wish trading areas to be in a
months and not more
to renew at this stage, we reasonable condition and
than twelve months from
will enter into the same in no worse a condition
the anniversary of their
negotiations as described in than at the start of the
agreement. If you wish
the section titled rents. tenancy. A dilapidation
to leave earlier we will
charge will be made for
An agreement outside of advertise the pub and once
any outstanding works not
the Landlord and Tenants a suitable new Business
completed on the day you
Act will normally allow six Partners is appointed,
vacate. A charge will also
months’ notice on either we will agree a change
be made to clear or remove
side throughout the term. If date releasing you from
any rubbish or abandoned
it is our intention to end the your obligation. You will of
items not removed on the
agreement at the expiry course be required to settle
day of change. In the event
date you will be notified at any outstanding accounts
that there is a dispute over
least six months in advance with us and carry out any
the schedule of conditions
of the termination date. repairs you are responsible
the tenant can refer to the
Where we hold leases for for.
Managing Director.YOUR LEASE We would aim to agree
the rent within three
reports be consulted. Assignment whether they are suitable. the Business and Financial
Plans for the premises.
The rent assessment, Leases are individual Butcombe will instruct
AGREEMENT months after the due
date. If the rent is not
incorporating a shadow and you should take a solicitor (at a cost of An Authorised Guarantee
Profit and Loss account, professional advice on the the lessee) to prepare Agreement must be
agreed after three months
will provide detail for you condition and fabric of the the necessary legal entered into in advance
Butcombe operate a and an extension to the
to take professional advice premises as well as financial documentation to enable of assignment, unless
limited number of tied negotiation period has not
and carry out bench and legal advice before the assignment to proceed. a release fee of £3,000
and partially tied leases. been reached the lessee
marking comparisons. entering into an agreement excluding VAT or 5% of the
Generally, these are can refer the rent review to The lessee is required to
of assignment of the lease. premium plus VAT is paid,
houses acquired from PIRRS. disclose trading information
Renewal whichever is the greater.
other operators, with lease We will respond within and all information
If the lease contains a
agreements in place. These Where the principle of 20 days to a request to necessary to enable the
provision for the rent to Surrender
leases are of varied origin renewal is agreed between assign the lease and carry prospective assignee to
increase in line with the
and differing terms. parties, rental negotiation, out a dilapidations survey make an informed decision Surrender of your lease can
retail price index (RPI) the
timetable and procedures (at your expense) within on taking the pub. only take place with the
When Butcombe purchases increase or decrease will
will be as for the rent four weeks of a request to agreement of Butcombe.
public houses held on apply on the anniversary of It is the responsibility to
review. assign. In cases of surrender a
leasehold terms, the the agreement. ensure the prospective dilapidation charge will be
existing tenure and terms Property Repairs and We will meet with the assignee has completed made and an early release
The rent proposed will be
are maintained. If we are Maintenance proposed assignee on appropriate pre-entry fee of not more than
prepared in good faith
unable to supply existing receipt of an application training, holds a Personal twelve months’ rent will be
in accordance with the Leases are held on a full
brands or products stocked, from the proposed assignee Licence and has taken charged.
current RICS guidelines, repairing and insuring
we will endeavour to supply within a reasonable appropriate professional
based on FMT and market terms, with the lessee
similar or substitute brands. timeframe and determine advice in connection with
rent. As part of the process responsible for repair,
your premises will have maintenance, decoration
Rent Review
been visited during the and insuring of the
We will write to you not less preceding three months. premises as a whole.
than nine months before
We recommend that on Individual leases describe
the due date and provide
receipt of the rent proposal, whether the repair liability
a rent proposal to include
appropriate professional is put or keep the premises
a rent assessment no less
advice be sought and that in repair.
than six months before the
industry-benchmarking
due date.You can also read
