Own your own pub business with an investment of £8,000
Batemans introduced this agreement option because, as a brewery, we appreciate that people have concerns about the future in these uncertain times. To get great people into our pubs, we have considered how we can support businesses and reduce the risk and uncertainty.
The Batemans’ Reduced Risk Business Purchase Agreement has been designed to offer peace of mind and quality of work-life balance as you embark on running a pub business. We are proud to say that we have created a level of support that we believe is unparalleled within the brewery industry.
We appreciate that with recent economic uncertainty, people may be hesitant about changing careers or investing in businesses. We understand the challenges and concerns of running a business in the hospitality sector and have developed an attractive agreement which addresses these concerns.
Agreement benefits:
- Buy a business at a very low cost
- Receive up to £2,000 towards the cost of your energy bills
- Receive up to £1,000 towards your family holidays
- Receive £800 of FREE training
- A business plan which supports two days off per week.
- Great private living accommodation for you and your family
- Reduced rent, with no rent reviews
- Security of tenure
- ‘Rewarding Success’ standards initiative
- Business and marketing support from Batemans
Agreement features:
- Own your pub business and take all the retail profit
- Build up a business with the option to sell it on at a profit in the future and reap the rewards of your endeavours
- If you want to sell, but can’t find a purchaser, Batemans will buy the business back
- Have no obligation for structural repairs
- Discounted drinks supply through Batemans
- Purchasing agreement for all drinks except spirits
- You retain 100% of the profits from fruit/gaming machines
- You have security of tenure but can give six months’ notice at any time (after the initial 12 months)
REDUCED RISK, FAVOURABLE TERMS
Own a Batemans pub business without the burden of purchasing the building and with none of the risk attached to traditional leases or freeholds. With our agreements, instead of buying the fixtures and fittings (the inventory), which is common throughout the industry’s outdated tenancy terms, you make an investment to us, which is proportional to the potential profit of the pub.
NO RENT REVIEWS
You pay a subsidised rate to buy the business without the burden of owning the building. The rent you pay to Batemans helps contribute towards the building repairs and maintenance which the brewery is responsible for and your private living accommodation. Crucially, there are NO RENT REVIEWS. Any rent adjustments align with the annual inflation rate (Retail Price Index), ensuring any increase is capped.
TALK TO THE TEAMMORE INFORMATION
This agreement offers security for up to 20 years with the flexibility of giving six months’ notice after the initial 12 months. After three years, you can sell the business to a third party. Additionally, you benefit from security of tenure and have no full repair liabilities.
The agreement is subject to the Landlord and Tenant Act (1954). It adheres to Batemans’ Eyes Wide Open policy manual, outlining the Business Owner and brewery agreements and terms. Our agreements comply with the industry’s Tenanted Code of Practice (1-500 pubs).
As a Batemans pub owner, you’ll benefit from access to discounted drinks from Batemans. Your purchasing agreement covers all beverages except spirits, ensuring you benefit from favourable rates and a range of quality drinks for your pub.
As a Batemans Pub Business Owner, you’ll receive comprehensive support for business development, including a single point of contact for cellar services and regular calls from our Profit Partnership Team, offering practical guidance.
We offer a support package designed to help you thrive and succeed, including:
- ‘Rewarding Success’ standards initiative
- Access to rating advice and appeal service
- Free regulations and employment law advice
- Bespoke marketing fund tailored to each pub
- Digital marketing support
- Menu and poster printing service
As a Batemans pub owner, you’ll receive £800 worth of FREE training, including:
- Cellar management
- Customer service
- Licensing
- Finance
- Drugs control
- Stock control
- Employment law
- Control of energy costs
FREQUENTLY ASKED QUESTIONS
The Batemans Reduced Risk Business Purchase Agreement offers an opportunity to purchase a pub business tailored to individuals who seek:
- Stability and support when venturing into a new career or investing in a business during uncertain times
- A supportive relationship with their brewery
- The option to sell the pub business down the line
While prior experience in retail, business, or pubs is beneficial, Batemans provides training to equip individuals without the expertise for success. What matters most is your passion for the business venture!
You are purchasing the business, or the ‘goodwill’, which you can sell to someone else for a profit. You do this without the burden of buying the building in this agreement – the bricks and mortar belong to Batemans Brewery, and we are responsible for all structural repairs. In essence, the Reduced Risk Business Purchase Agreement takes all the good things about a lease and removes the bad stuff, such as full repairing liabilities and not being able to leave should you wish to – that’s what makes it unique!
Batemans Brewery is responsible for all repairs to the structure of the property. We are also responsible for external decorations.
The Business Owner is responsible for the upkeep and repair of the fixtures and fittings, which you have not had to purchase but need to make up any depreciation cost when you sell the business. The subsequent Business Owners will have the same obligations. You are also responsible for the general day-to-day maintenance of the property.
We are open to conversations about capital investment to help the pub and business and how we can both improve our income.
You are free to buy spirits from wherever you wish to. Batemans supplies the remainder of your drinks, allowing us to subsidise the business’s purchase prices and rent. We stock over 1,500 products, supply drinks at discounted prices and cap price increases.
Guest ales
In addition to Batemans cask ales, we can supply a range of guest and craft keg beers.
Retrospective discount arrangement
We may agree with each Business Owner a realistic volume of drinks that could be sold each year, and we will pay a bonus of an additional £50 per composite barrel over and above the target. The composite barrelage calculation is made up of;
- Draught beer, lager, stout, cider, 36 gallons, 165.56 litres
- Wines, 14.5 gallons, 66 litres
- Spirits, 5.25 gallons, 23.8 litres
- Soft Drinks, 24 gallons, 108 litres
The business can only be sold after the original owner has been in the pub for a minimum of three years. Subsequent Business Owners can sell on at any time.
To sell the business, you must adhere to all the Reduced Risk Business Purchase Agreement obligations and any legal requirements detailed in the Eyes Wide Open Manual.
With a typical lease, you would need to find a purchaser. If this proves difficult, you retain all the obligations of continuing your lease. But with the Batemans Reduced Risk Business Purchase Agreement, in these circumstances, we would buy the business back for a minimum of the same price as the original purchase cost or the price at which it last changed hands, whichever is the least (net of any outstanding balances).