Moving to Harveys and the Tenancy Agreement in outline

The publicans brief guide to Harveys:

Harveys is a very small family firm and everybody knows each other. Our 47 public houses are never regarded as retail units or themed pubs - each is unique and come in all sizes and locations - some are big on food, others concentrate on their range of beers. Harveys relish the variety.

Unlike most pub companies we don’t have a Property Department. Only one member of Harvey‘s personnel, Geoffrey Denne, is solely dedicated to the interests of our pubs with a few staff from Head Office serving our free trade, wine and shop customers.

Harveys seek four fundamental things from our tenants:

Maintain and enhance the quality reputation of Harveys’ products and good name.
Look after and maintain our building and property to the highest order.
Ensure that the regular direct debit payment to Harveys clears on time. (Financial considerations aside, this is a sacrosanct symbol of the essential trust between Harveys and the tenant)
Adhere to the tied terms of the tenancy agreement.

We’re proud of our traditional family business ethos and are always happy to talk more about it. Please put any questions on an enquiry form, email or telephone us.

The selection process:

We have an unrivalled reputation for quality to maintain so our selection process is designed to ensure that we appoint the right tenant for the right house. We want the best freelance ambassadors to run our pubs – friendly, hospitable people who are also ambitious and dynamic so that they maximise the benefits of the Harveys relationship. We are not seeking stereotypes with a stream of qualifications. Some of our best tenants had little previous pub experience but have a natural flair for running a pub. With over a century of experience we are adept at matching the right person to the right pub. a serious and professional approach is in both party’s interests.

It’s not in our best interested to appoint a tenant who is unsuitable for a particular house.

Once an application has been approved we talk frankly to prospective tenants – stressing the negative aspects well as the positive benefits of running a pub. This helps to ensure people are under no illusion that running a pub is a picnic!

It’s your Pub business:

Once appointed, Harveys leaves tenants to operate their own business without interference. This doesn’t mean tenants are left on their own. We do assess the trading capability of each house and offer advice accordingly; - and other support services are on hand if required.

We advise that all prospective tenants read and understand our Tenancy Agreement. Please note its contents are standard across the Harveys Estate and therefore its terms are not negotiable.

The following points describe the main terms of the tenancy agreement :

The term or period of the lease

The term of the tenancy agreement is initially for five years. But Harveys would normally expect to renew it for another five year term at least.. i.e assuming the tenant adheres to the terms of the tenancy, (payments, tie, maintenance etc) Security of tenure is guaranteed to the tenant for five years, unless the tenant wishes to depart.
The agreement is outside the landlord and tenant act, which means that the tenant is not automatically entitled to renewal after five years.
Terms for extending the agreement are under constant discussion from Year Three, so there will be no surprises and the end of the term.
If the tenant wishes to leave at any time, six months notice is required.. (It is not in Harveys’ interests to retain a tenant longer than suits the tenant so in practice this can be a shorter period, if mutually agreed and assuming a successor can be identified ).
A tenancy agreement is not assignable. (it cannot be transferred to another operator, Although a partner/spouse has the opportunity to continue the lease when circumstances dictate)

Finances

Rent is fixed for the five year period (However it is index linked to RPI and will be adjusted by that amount each September). It is payable in advance in weekly instalments by direct debit.
The tenant must also lodge a deposit with Harveys. This normally equates to 25% of the annual rent. This sum will be held on deposit accruing interest for the tenant.
The tenant will pay an ingoing fee to cover fixed legal and administrative transfer costs for the individual house. (This figure will not exceed £1,000)
Other tenant costs relate to Stock, inventory, insurance etc.

Harvey Obligations

A Harvey tenancy is not a ‘full repairing lease’. Harveys remains responsible for maintaining the fabric of the building. This means major structural maintenance (e.g roof repairs) will be addressed by Harveys at no cost to the tenant.
Harveys remains responsible for insurance cover for the fabric of the building.
Harveys keeps the outside of the building and signage in good decorative order.

Tenant Obligations

A Harvey tenancy agreement is not as onerous as a ‘full repairing lease’.
The tenant is responsible for maintaining the services, fixtures and fittings and the internal decorative maintenance of the property.
The tenant is obliged to purchase all drink supplies (with the exception of tea and coffee) from Harveys at list price. This requirement is known as the Tie
The ingoing tenant must purchase the inventory of equipment, furnishings and loose effects from the outgoing tenant at a figure assessed by independent brokers. This invariably accounts for the most significant incoming cost for acquiring the business. The capital required varies substantially from house to house and is generally higher in food led operations.
Insurance cover for the business must be obtained by the tenant, including policy for public liability claims, business interruption, staff injury, etc

If you have any questions please submit an enquiry form and we will be happy to respond.

Your enquiry – contact us if you think Harveys can help you realise your aspiration to run a pub.