There are several clauses within our agreement which both parties must adhere to. The main ones are listed below:
For prospective tenants, a copy of our current trade price list will be supplied and will include details of all available products. Discounts available to tenants will be highlighted on that list. Price Lists are always available on request.
Hydes’ is happy to provide 2 week’s credit as our standard terms, payable by direct debit. For example:
Monday 1st February
Wednesday 3rd February
Products are delivered to you
Wednesday 17th February
You pay for goods by direct debit from your account
Dependant on your level of Ingoings (see below) and your financial status, these terms may vary.
An example of alternative terms would be “Cash with Order” . In that case our telesales team will confirm the value of your order, rent and any other monies due when you place your order. To receive your order you would need to pay the full value, in cash, by 2 p.m. on the day before your delivery. Cash payments are acceptable either at the Brewery, to an officer of the Company (up to £2500) or made directly into Hydes Bank account.
The estimated ingoings (the money you need to have available before signing an agreement with us) for a Hydes tenancy would be as follows:
£4000 to £6000 to be paid prior to the day of you taking on the pub. (See section 2.4) Deposits are held by the Company and are refundable to you on expiry of the tenancy, less any monies owing to Hydes.
This may range from £2,000 to £8,000 dependant on the site but full details of the expected cost will be made available to you prior to your signing our tenancy agreement.
When advertising a vacancy Hydes will provide all applicants with an estimate of the value of fixtures and fittings. You should anticipate having the full value available to pay towards fixtures and fittings on the day of change. If this is not the case, you will be expected to pay for the remaining balance over the first 12 months of the tenancy and you will be required to sign a binding loan agreement, prior to taking on the pub.
The fixtures and fittings would remain the property of Hydes Brewery until they are paid for in full. You would be responsible for the insurance, maintenance and any depreciation (until you own them outright).
Hydes has a contract with external suppliers to maintain cellar cooling equipment at a cost of approximately £140 p.a. and fans at a cost of approximately £90 p.a. In addition for those houses with kitchen extraction equipment we will undertake an annual clean at a cost of approximately £450 p.a. unless you have evidence of having undertaken this through your own contractor.
Tenants are invoiced bi-annually for the above. However any repairs to either the cellar cooling or fans will be carried out by the Company.
Hydes employs the services of a consultant to provide additional support to maximise the income of all gaming facilities within the business. We receive a small royalty from the equipment providers and therefore give the consultancy service to our tenants FREE OF CHARGE. We select nominated suppliers based on the quality of machine supply, standard of service, security of money and presentation of equipment. Hydes Operations Managers review machine performance each month. The number and siting of the machines will be noted on the Premises Licence for the pub.
The tenant receives 50% of the balance after rent, license duty and VAT have been deducted. License duty is deducted at a fixed rate per machine per week. The Income from gaming equipment is not included within any rent assessment.
Machines should be changed only to maximise the tenant’s income. Machines will not normally remain on site for more than 13 weeks. The supplier will monitor performance and should change the machine when the take starts to fall. A tenant should, however, also monitor the income and contact the supplier if it is felt a change is required.
Sadly, break-ins and thefts may be machine related. For this reason security should be a high priority in areas where gaming machines are located. Tenants may wish to insure the float held within the machines.
Fraudulent use of machines is also something that tenants should be aware of. For example, the most common approach is for a customer to claim that a machine has failed to pay out. A gaming engineer from the suppliers will be able to determine how much a player has really won.
The takings from all machines are collected on agreed dates. Machines are fully metered and verified for cash security.
Flowmeters are standard in Hydes tenancies. They monitor the flow of beer and other products - enabling a comparison to be made between what has been sold over the bar and what has been purchased from the brewery. This information can be used by both Hydes and the tenant and is always made available on request. For example tenants can analyse beer throughput with greater ease and accuracy using the reports available.
We also employ the service of a cellar auditor who visits our tenants at least twice a year to inspect the cellar and ensure that the tie is being adhered to.
Hydes reserves the right to install flowmeters at any site. There is no charge to the tenant for this. Where flowmeters are installed, Hydes will require access to maintain and service the equipment and the tenant must ensure that it is cleaned as required. The tenant is always invited to be present during any calibration of the equipment.
These may indicate that a tenant is in breach of the tie. In this case our first step is to conduct a full investigation into the report to ensure that it is correct. The investigation would include a full recalibration of the equipment, a cellar inspection and also verification of orders. If this confirms a breach of the tie, Hydes will discuss a sanction with the tenant which could include any or all of the following:
Hydes’ insurance covers the building and this is provided free of charge to our tenants. The tenant is responsible for all internal insurance including regarding fire, theft, employee and public liability.
To clarify, tenants are required to insure some parts of the business as detailed below:
You would be required to use our nominated insurer who will provide the appropriate level of cover at a very competitive price. If you are able to source the same level of cover from another reputable provider, we will refund you the difference – on receipt of a written quote from them.
Hydes is responsible for maintenance, testing , certification and repair of equipment legally deemed to be the responsibility of the landlord (e.g. electrics, emergency lighting installations, fire alarms, heating systems, gas appliances and wall fans). The tenant is responsible for all other areas (e.g. fire extinguishers, intruder alarms, CCTV, pest control, emergency lighting bulbs and kitchen extract maintenance).
Tenants are not permitted to undertake ANY gas or electrical installations or alterations at site. Any requirements must be raised with Hydes and if agreed one of our nominated contractors will carry out the work.
You are also required to employ and pay for the services of a Company nominated Accountant for at least the first year of your tenancy. This accountant will share your financial information with Hydes so that we can assist you in building and maintaining a successful pub.
When you become a tenant, you must arrange to register with the HMRC for VAT and PAYE purposes (if you are not already registered).
You may also be required by law to register the business with the local Environmental Health Authority.
If you intend to broadcast copyright music, either live or recorded you must obtain a PRS and PPL license by calling Performing Rights Society on 020 7580 5544 and Phonographic Performance Ltd on 0207 7534 1020. Tenants can also access the relevant websites to progress this.
One TV licence is required for each pub (which covers up to 15 units) plus you need a separate licence for any domestic televisions in the tenant’s accommodation.
You must ensure that you have the appropriate contracts and documentation from SKY before utilizing their services.