What is a retail agreement?
- A rent-free, five year agreement
- The retailer takes home between 20% and 25% of total net weekly turnover
- Stock supplied by Marston's, and Marston's covers the cost of utility bills, repairs and F&F
- Extensive support package provided, including tried and tested menus and access to our beer portfolio
- Run a great business at the same time as being part of a local community
The retail agreement is ideal for someone looking to run their own pub business for a small ingoing fee.
Our retailers don’t pay any rent, and we’ll sort the majority of the bills (for example, rates, utilities and property insurance). We’ll provide your stock, fixtures and fittings and till systems, and give you marketing materials to help you promote the business.
The benefit of this is that it takes away a lot of the hassle, leaving you to focus on driving the business and maximising your earning potential. Our retailers’ income is based on a percentage of the pub’s weekly sales, so the more they grow the business, the more they can earn. The percentage varies from 20 to 25%, depending on the pub and the offer.
We have different types of pubs available on our retail agreement. They range from heart of the community wet led pubs to food led destination sites. We even have a number of town centre venues too. If you take on a pub with a Marston’s food offer, you’ll be given a menu to work to and all the equipment you need.
To help you decide whether the retail agreement is right for you, take a look at the table below. This highlights the main differences between the retail agreement and the other agreements we offer.
If you like the low investment and high level of support offered by our retail agreement, but are looking for the freedom you get from taking on a tenancy, then take a look at our foundation agreement too.
|How long is the agreement?||5 years||5 year term (plus 5 years)||From 5 to 30 years||3 or 5 years|
|Do I have to pay a deposit or agreement fee?||Yes - £5,000||Yes - £25,000||Yes – the amount depends on the property||Yes – the amount depends on the property|
|What are the other ingoing costs?||£360 legal fees, independent legal advice, accountant’s advice and surveyor’s advice||£20,000-£25,000 working capital||Working capital, legal fees, training fee, the purchase of stock/glassware/F&F, independent legal advice, accountant’s advice and surveyor’s advice||Working capital, legal fees, training fee, the purchase of stock/glassware/F&F, independent legal advice, accountant’s advice and surveyor’s advice|
|Do I pay rent to Marston’s?||No||No||Yes||Yes|
|Do rent reviews apply?||N/A||N/A||Yes – every 5 years||No|
|Is there a profit or sales split?||The retailer retains 20%-25% of gross sales||The franchisee retains 20% of sales and 20% of quarterly profit||No||No|
|Does the beer tie apply?||Yes||Yes||Yes||Yes|
|Is the food offer decided by Marston’s?||Yes – although we do have a few sites where the retailer can do their own food||Yes||No||No|
|Do I pay a service charge?||No||No||Yes||Yes|
|How is machine income split?||Marston’s retains 100%||Marston’s retains 100%||Split 50/50 between Marston’s and the operator||Split 50/50 between Marston’s and the operator|
|Who is responsible for repairs?||Marston’s||Marston’s||The operator||Marston’s for external repairs, the operator for internal repairs|
|Are any other costs covered by Marston’s?||Utilities, services and rates, property insurance, business rates||Utilities, services and rates, property insurance, business rates||No||No|
|Is the business assignable?||Yes – with Marston’s consent||Yes – with Marston’s consent||Yes – with Marston’s consent||No|
Still not sure which route to take? Give our Recruitment team a call on 01902 329713 and we’ll do our best to help. We’re available Monday to Friday, 9am to 5pm.