Marston's Pub Franchise
What is a franchise?
A franchise is a business relationship where one party allows another to operate clones of a proven business model in return for initial and on-going fees.
What does that actually mean?
The franchisor (in this case, Marston’s) gives the franchisee a license entitling them to use their methods, trademarks and brand. In return, the franchisee pays an initial license fee and an ongoing business fee.
The franchisor provides the franchisee with a support package and operating manual (covering things like induction, training, business development advice, marketing and so on) which means they can run and develop the business, even if they have no prior experience in this field.
Franchising is a great way to have your own business and work for yourself – but you’ll be safe in the knowledge that support is there when you need it.
The table below highlights the key features of our franchise agreement, and how it differs from the other agreements we offer. This will help you decide which option is best for you.
|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, £360 legal fees, 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||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|
|Are wet and dry stock supplied free of charge?||Yes for wet, and for dry if it’s a Marston’s food offer||Yes||No||No|
|Is product pricing set by Marston’s?||Yes||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, council tax for the trading space||Utilities, services and rates, property insurance, council tax for the trading space||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.