Hawthorn Leisure Guide to Charges

Guide toCharges

Entry costs, ongoing charges, occasional feesand how much it costs when you leave the pub

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1 INTRODUCTION1.1 Introduction to Hawthorn Leisure’s charges 2

2 ENTRY COSTS2.1 Introduction to the entry costs you’ll need to pay 22.2 Agreement costs 22.3 Security deposit 22.4 Valuation/Broker’s fees for inventory 22.5 Additional entry costs for Lease Agreements 32.6 Payments you’ll need to make in advance 3

3 ONGOING COSTS3.1 Introduction to banded charges 33.2 Maintenance & Service Plan (England only) 33.3 Hawthorn Leisure’s Insurance charge 43.4 Amusement machines 43.5 Licensing charge (England) 43.6 Licensing charge (Scotland) 43.7 One-off charges 43.8 Items you buy from us 5

4 EXIT COSTS4.1 Introduction to exit costs 64.2 Exit costs for Tenancy Agreements 64.3 Exit costs for Lease Agreements 64.4 Other costs you may need to pay when you leave 6

Using this documentThroughout 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.

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Contents

TENANCY

Information forTenancy Agreements

LEASE

Information forLease Agreements

1

1 INTRODUCTION

1.1: INTRODUCTION TO HAWTHORN LEISURE’S CHARGESWe’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 whenyou leave.

2 ENTRY COSTS

2.1: INTRODUCTION TO THE ENTRY COSTS YOU’LL NEED TO PAYThe 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 COSTSAgreement costs vary depending on the type of Agreement.

Tenancy AgreementConversion to new Tenancy Agreement

Lease AgreementLease Assignment

Conversion to other Tenancy Agreement

Tenancy at WillConversion to other Tenancy AgreementLicense to Occupy/Operator’s Agreement (Scotland only)

Deed of Variation

£750£450

£895£895

£500

£250£600£250

£395

2.3: SECURITY DEPOSITA deposit is usually 25% of your annual rent and not less than £3,000.

2.4: VALUATION/BROKER’S FEES FOR INVENTORYFor 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.

AGREEMENT TYPE COST

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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 arrangeyour own. You will be required to cover the cost of these surveys, which will be confirmed with you prior to theirarrangement. 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 CHARGESIn addition to your rent, there are ongoing charges that you will need to pay to us. We’re keen to make surethat we are open and straight forward about these. Our charges for your Maintenance and Service Plan andInsurance 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 Plancharges are subject to annual review. Some excesses may apply, please refer to the Guide to Maintenance & Service for details.

BAND

123

£1,600£1,778£1,955

ANNUAL CHARGE


3.4: AMUSEMENT MACHINESWhere a tied agreement for amusement machines is in place and they are operated on rental termsHawthorn 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 LocalAuthority. 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.

Please note that we may re-charge the cost of enforcement action eg. reviews, interview under cautionand meetings with responsible authorities.

RATEABLE VALUE ANNUAL LICENSING CHARGE£0 - £4,300

£4,301 - £33,000£33,001 - £87,000£87,001 - £125,000

£125,001+

£70£180£295£320£350

3: ONGOING COSTS continued...

3.3: HAWTHORN LEISURE’S INSURANCE CHARGEHawthorn 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 ourGuide to Insurance. Please note that insurance charges are subject to annual review.

Your BDM will advise you of the insurance charge for your property.

3.6: 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 actionsattributable 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.



3.7: ONE-OFF CHARGESOccasional charges you may need to pay.

Deed of VariationCopy of AgreementAssisted Purchase administration fee

LicensingDesignated Premises Supervisor (DPS) LicensingVariations - minorVariations - majorNote that additional charges will apply if application goes to a hearing.

Sewage Charge, if plant is on site (Tenancy Agreements only)

Breaching your Purchasing ObligationsCompensation (Liquidated Damages)

Administration feeTampering with flow monitoring equipment

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 chargeRefused delivery chargeCourier chargeAuthorised Guarantee Agreement Release Fee(Lease assignment)Bounced Direct Debit paymentBounced ChequeCopy invoice Charge

£395£150£150

£75 + Local Authority charge£350£495

Cost varies depending on plant

Draught, beer and cider - £200Packaged beer, cider

and FABs - £7.85 per caseWine - £11.99 per caseSpirits - £29.99 per case

Packaged minerals- £4.20 per case

Boxed minerals - £15.99 per bag in box

£315 minimum chargeAll associated costs

to re-instate equipment. Maintenance call charges where

access refused.

£55£55

£25 + standard courier chargeCharges will vary depending on

the size and value of the business.

£50£50£5

ITEM ENGLAND SCOTLAND

£395£150£150

Variable - dependant onfees charged by local councils

Cost varies depending on plant

Draught, beer and cider - £200Packaged beer, cider

and FABs - £7.85 per caseWine - £11.99 per caseSpirits - £29.99 per case

Packaged minerals- £4.20 per case

Boxed minerals - £15.99 per bag in box

£315 minimum chargeAll associated costs

to re-instate equipment. Maintenance call charges where

access refused.

£55£55

£25 + standard courier chargeCharges will vary depending on

the size and value of the business.

£50£50£5



3.7: ITEMS YOU BUY FROM USIn addition to stock and other items you are obliged to buy from us under the terms of your Agreement, youmay 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 COSTSWhen 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

4.3: EXIT COSTS FOR LEASE AGREEMENTS

4.4: OTHER COSTS YOU MAY NEED TO PAY US WHEN YOU LEAVEWhen you leave your pub, we will prepare a Schedule of Dilipidations, this details any repairs you need tomake before you leave. If these are not completed when you leave your pub, we will deduct the cost for therepairs from your deposit.

ITEM CHARGEDilipidations surveyor costs

Early surrender of AgreementDeed of Surrender

£495Up to 1 years rent and no less than 6 months rent

£150

ITEM CHARGEDilipidations surveyor costs

Assignment chargeEarly surrender of Agreement

Deed of Surrender

£495£895

Up to 1 years rent and no less than 6 months rent£150


5: NOTES


hawthornleisure.com

Hawthorn Leisure Limited

Westbury OfficeAngel Mill

Edward StreetWestburyWiltshire

BA13 3DR

General Enquiries

01373 828 [email protected]

Documents

Hawthorn Leisure Guide to Charges