Charges Guide to
Entry costs, ongoing charges, occasional fees and how much it costs when you leave the pub
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Contents 1 1.1
INTRODUCTION Introduction to Hawthorn Leisure’s charges
2
2 2.1 2.2 2.3 2.4 2.5 2.6
ENTRY COSTS Introduction to the entry costs you’ll need to pay Agreement costs Security deposit Valuation/Broker’s fees for inventory Additional entry costs for Lease Agreements Payments you’ll need to make in advance
2 2 2 2 3 3
3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8
ONGOING COSTS Introduction to banded charges Maintenance & Service Plan (England only) Hawthorn Leisure’s Insurance charge Amusement machines Licensing charge (England) Licensing charge (Scotland) One-off charges Items you buy from us
3 3 4 4 4 4 4 5
4 4.1 4.2 4.3 4.4
EXIT COSTS Introduction to exit costs Exit costs for Tenancy Agreements Exit costs for Lease Agreements Other costs you may need to pay when you leave
6 6 6 6
Using this document
Throughout these pages we have highlighted the difference between a Tenancy and Lease where relevant. We use the word Partner to refer to both a Tenant and a Lessee. All costs are shown excluding VAT. VAT will be charged at the appropriate rate where applicable. Costs may change before a reprint of this document, we will ensure you are made aware of changes in writing.
TENANCY
Information for Tenancy Agreements hawthornleisure.com
LEASE
Information for Lease Agreements
1
1
INTRODUCTION
2
ENTRY COSTS
1.1: INTRODUCTION TO HAWTHORN LEISURE’S CHARGES We’re committed to ensuring that you are aware of all the costs we charge. To keep things simple, we have divided this document into sections: when you enter your pub, when you are operating your pub and when you leave.
2.1: INTRODUCTION TO THE ENTRY COSTS YOU’LL NEED TO PAY The amount you pay when you move into your pub will depend on the type of Agreement you choose. We have shown the items you will need to budget for. We will provide up-to-date information about your specific pub during the entry process.
2.2: AGREEMENT COSTS Agreement costs vary depending on the type of Agreement.
AGREEMENT TYPE
Tenancy Agreement Conversion to new Tenancy Agreement
COST £750 £450
Lease Agreement Lease Assignment
£895 £895
Conversion to other Tenancy Agreement
£500
Tenancy at Will Conversion to other Tenancy Agreement License to Occupy/Operator’s Agreement (Scotland only)
£250 £600 £250
Deed of Variation
£395
2.3: SECURITY DEPOSIT A deposit is usually 25% of your annual rent and not less than £3,000.
2.4: VALUATION/BROKER’S FEES FOR INVENTORY For Tenancy and Lease Agreements, you will be required to pay Hawthorn Leisure’s costs for valuation and Broker’s fees if you are buying the inventory from us. hawthornleisure.com
2
2
ENTRY COSTS
continued...
2.5: ADDITIONAL ENTRY COSTS FOR LEASE AGREEMENTS
LEASE
We will arrange a full structural survey, along with associated supplemental surveys, should you choose not to arrange your own. You will be required to cover the cost of these surveys, which will be confirmed with you prior to their arrangement. Payment will be required before the surveys can be arranged.
2.6: PAYMENTS YOU’LL NEED TO MAKE IN ADVANCE
TENANCY
Rent – Payable weekly in advance when you enter your pub.
LEASE
Rent – Payable monthly in advance when you enter your pub. Repairs Fund – You will need to pay the first weekly amount in advance before you enter the pub (see above).
3: ONGOING COSTS
3.1: INTRODUCTION TO BANDED CHARGES In addition to your rent, there are ongoing charges that you will need to pay to us. We’re keen to make sure that we are open and straight forward about these. Our charges for your Maintenance and Service Plan and Insurance are calculated on a banded basis, dictated by the size and trading style of your pub.
Your Business Development Manager will confirm your banding details.
This information will also be included in your Heads of Terms Offer Letter.
3.2: MAINTENANCE & SERVICE PLAN (ENGLAND ONLY)
TENANCY
Your Maintenance & Service Plan includes compliance, testing, repairs, servicing, and maintenance of major equipment. To see what’s covered refer to your Guide to Maintenance & Service. This will normally be taken 4-weekly as part of your Direct Debit. (Lease Agreements do not pay this charge). Please note that the Maintenance & Service Plan charges are subject to annual review. Some excesses may apply, please refer to the Guide to Maintenance & Service for details. BAND 1 2 3
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ANNUAL CHARGE £1,600 £1,778 £1,955
3
3: ONGOING COSTS
continued...
3.3: HAWTHORN LEISURE’S INSURANCE CHARGE Hawthorn Leisure’s Insurance Policy covers Property Damage to our buildings and/or our fixtures & fittings, also Loss of Hawthorn Leisure’s Income (Business Interruption) including loss of rent, loss of barrelage income, loss of machine income. For full details of Hawthorn Leisure’s insurance and what is covered, refer to our Guide to Insurance. Please note that insurance charges are subject to annual review.
Your BDM will advise you of the insurance charge for your property.
3.4: AMUSEMENT MACHINES Where a tied agreement for amusement machines is in place and they are operated on rental terms Hawthorn Leisure will charge a Management Fee. The value of this payment, which will vary by machine supplier, is up to £10.50 per week per machine and is only payable on Category C and D machines.
3.5: LICENSING CHARGE (ENGLAND) Licensing costs are paid annually and recharged to you at cost when we receive an invoice from your Local Authority. Dates for this invoice may vary depending upon where your pub is situated and when the Local Authority charges us. Licensing costs are banded based on the Rateable Value of your pub. If you are unsure of your pub’s Rateable Value, you can check this with your Business Development Manager. As legislation changes additional charges may apply. We will advise you of these charges.
RATEABLE VALUE £0 - £4,300 £4,301 - £33,000 £33,001 - £87,000 £87,001 - £125,000 £125,001+
ANNUAL LICENSING CHARGE £70 £180 £295 £320 £350
Please note that we may re-charge the cost of enforcement action eg. reviews, interview under caution and meetings with responsible authorities.
3.6: LICENSING CHARGE (SCOTLAND) We will charge you an Annual Licensing Fee that pays for your Premises Licence renewal fee.We pay the Local Council on your behalf. We also charge for a review of the Premises Licence which results from actions attributable to the Partner. As legislation changes additional charges may apply. We will advise you of these charges. Your BDM will advise you of the fee as these are dependant on the charges set by respective Local Councils.
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3: ONGOING COSTS
continued...
3.7: ONE-OFF CHARGES Occasional charges you may need to pay. Deed of Variation
ITEM
Copy of Agreement
Assisted Purchase administration fee
Licensing
Designated Premises Supervisor (DPS) Licensing
Variations - minor Variations - major
Note that additional charges will apply if application goes to a hearing.
Sewage Charge, if plant is on site (Tenancy Agreements only)
Breaching your Purchasing Obligations Compensation (Liquidated Damages)
ENGLAND
SCOTLAND
£150
£150
£395
£150 £75 + Local Authority charge
Variable - dependant on
fees charged by local councils
Cost varies depending on plant
Cost varies depending on plant
Draught, beer and cider - £200
Draught, beer and cider - £200
£495
Packaged beer, cider
Wine - £11.99 per case
Spirits - £29.99 per case Packaged minerals - £4.20 per case
Boxed minerals - £15.99 Tampering with flow monitoring equipment
£150
£350
and FABs - £7.85 per case
Administration fee
£395
per bag in box
£315 minimum charge All associated costs
to re-instate equipment.
Packaged beer, cider
and FABs - £7.85 per case Wine - £11.99 per case
Spirits - £29.99 per case Packaged minerals - £4.20 per case
Boxed minerals - £15.99 per bag in box
£315 minimum charge All associated costs
to re-instate equipment.
Maintenance call charges where
Maintenance call charges where
£55
£55
access refused.
access refused.
Non-standard deliveries
In any given quarter you are entitled to two additional non-standard deliveries free of charge, excluding couriers. If you exceed this allowance you will be charged for each additional delivery thereafter. If you refuse to accept a delivery at any time a charge will be applied to your Trade Account.
Additional non-standard delivery charge Refused delivery charge
Courier charge
Authorised Guarantee Agreement Release Fee (Lease assignment)
Bounced Direct Debit payment Bounced Cheque
Copy invoice Charge
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£55
£25 + standard courier charge Charges will vary depending on the size and value of the business. £50 £50 £5
£55
£25 + standard courier charge
Charges will vary depending on the size and value of the business. £50 £50 £5
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3: ONGOING COSTS
continued...
3.7: ITEMS YOU BUY FROM US In addition to stock and other items you are obliged to buy from us under the terms of your Agreement, you may choose to buy other items from us. These could include:
Marketing and promotional support (posters, leaflets, glassware etc.) Any repairs we make on your behalf 4: EXIT COSTS
4.1: INTRODUCTION TO EXIT COSTS When you leave your pub, there are costs that you will need to pay. These are different for Tenancy and Lease Agreements.
4.2: EXIT COSTS FOR TENANCY & FOUNDATION AGREEMENTS
ITEM
Dilipidations surveyor costs Early surrender of Agreement Deed of Surrender
4.3: EXIT COSTS FOR LEASE AGREEMENTS
ITEM
Dilipidations surveyor costs Assignment charge Early surrender of Agreement Deed of Surrender
CHARGE
£495 Up to 1 years rent and no less than 6 months rent £150
CHARGE
£495 £895 Up to 1 years rent and no less than 6 months rent £150
4.4: OTHER COSTS YOU MAY NEED TO PAY US WHEN YOU LEAVE When you leave your pub, we will prepare a Schedule of Dilipidations, this details any repairs you need to make before you leave. If these are not completed when you leave your pub, we will deduct the cost for the repairs from your deposit.
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5: NOTES
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Hawthorn Leisure Limited
Westbury Office Angel Mill Edward Street Westbury Wiltshire BA13 3DR
General Enquiries
01373 828 719 enquiries@hawthornleisure.com
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