Licensee puts out sign begging for customers MA 7.2.09


Author: L K

Comment Date: 06/02/2009 12:23:43

I have a lease with one of the big PUBCO'S, bought in June 2007 and i have to say the PUBCO have been very helpful through the downturn. Ive been straight with them and they have been straight with me and this has resulted in a lower price for beer, some free barrels to offset witherspoons and others in the area and in the last 6 months a reduced rent by a quarter. This review is ongoing. Everyone has hit hard times and i think the PUBCO's are first to admit they have been slow to react, but for me as soon as something has happened in managed house nearby that makes it difficult to compete, i have been on the phone and had the desired response. It may be difficult for some people as it may have gone to far but my advice, be honest and open, in this climate im sure they dont want you to be handing the keys back its not ultimately what they want.

Hi LK

Glad to hear that you've been getting support from your pubco. This is the kind of story people don't hear enough about. A couple of questions for you though.:

Does the support you've been given have any strings attached?
What level of disclosure of your accounts did the pubco expect you to provide when discussing the support?
Were you asked to extend the number of products you buy though the tie?
Is the rent reduction for a fixed period or ongoing?
Without the support would you be still in business?

Were you before the support and are you now making a living from your business, after repaying your initial investment, putting aside for repairs and renewals and contingencies?

Best wishes

Mark

J Mark Dodds