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.

  Retail Pub Franchise Lease Tenancy
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.