Monday, March 15, 2010

Realistic & Acceptable Rent Level for a New Enterprise Lease

Get in touch with several brewers and talk to them about the discount they would give you for selling direct on 200 barrels and increasing according to your vision for improving the business.

Compare your results with what Enterprise offer. Although they will be doing incentives on sales they never would have given a second's thought to until recently. If they are offering attractive discounts - push for them at the level of the free of tie prices get them set in stone never to be taken away.

Assess your comfortable rent and negotiate HARD to get it at 30% less than that. Survey the building in total detail - ANYTHING you're not happy about tell them it's their job to get it sorted to your satisfaction. If they say any such work will be done after you sign simply do not believe them.

Tied pubs tend not to be repaired or maintained as they ought. It's a long story... You must pay close attention to mechanical and electrical services and all things that work hard and are costly to replace. Unless the building has had a very recent complete refurb including all new services installed to code and certificated expect them all to fail within a couple of years. Same goes for roofs and almost everything else.

Oh and for your own peace of mind don't take on a tied lease.

Take your time, work on your business plan to the nth detail and buy a freehold.

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