Tuesday, July 13, 2010

Welsh committee urges beer tie reform


A franchise is not a 'tie' like the beer tie. A franchise is a fundamental, visceral partnership where the franchisor creates and generates the idea, the concept and the dream, the brand, the product, the distribution, the shop equipment, the interiors the colour scheme, the menu, the uniform and the decor, the marketing, promotions, back office support and, most of all the training necessary to be able to deliver all the above to customers; and the franchisee pays the franchisor for the privilege of delivering the above to an enthusiastic engaged and well informed audience who want to spend their money in the franchisees' outlets.

I know independent minded franchisees who have bought into the whole, who are incredibly hard working, focused and deeply committed to their relationship with their franchisor. They are financially successful and determined to do more work in partnership with their 'partner'. Does that sound like a 'pubco tied lease model' to you Ken? NOT AT ALL.

There is no way the parties in the tied pubco industry are going to sit down together to work out a different way of doing it. Fair Pint invited ALL the main pubcos to discussion at our launch and, predictably, ALL refused outright, or ignored, the request. They are NOT interested because changing it so it works for both tenant and freeholder en masse simply doesn't work for pubcos. They cannot repay their debts if they are more realistic about sharing the available profits left in a declining market their own nefarious activities brought about...

A 'new industry wide lease' is not going to happen, Ken, Full Stop. There is, however, a slyly equivalent Emperor's New Clothes scam going on where pubcos try to convince outsiders that a new era is dawning - this is their meaningless, toothless new 'codes of practice'; RICS valuation guidance notes; BII accreditation stuff; ad nauseam as pimped around by their practically useless lapdog the British Beer and Pub Association.

No comments:

Post a Comment