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Becoming a Shepherd Neame Tenant means entering a true partnership, one with shared responsibilities and rewards.
We have tried to make the process as clear and as straightforward as possible, so potential Tenants understand exactly what is required of them and how they will be continually supported. The resulting procedure is one that involves a relatively low level of risk.
You will need to take independent legal and financial advice and construct a financial and business plan. Generally, applicants should have a minimum of £10,000 to invest in the business.
Shepherd Neame's standard Tenancy Agreement is a three-year renewable term. It is not excluded from the Landlord & Tenant Act and at the end of the initial and any subsequent three-year term, the Licensee has the right to a further three-year term.
Rent is agreed before the tenancy starts or is renewed and is not increased annually in line with the RPI, but is discounted from the full market rent in Years One and Two of the term, to allow Tenants to invest and grow their business.
As a Tenant, you will be required to buy all 'wet' goods – beer, cider, wine, spirits and minerals – from Shepherd Neame. However, beers brewed by Shepherd Neame are sold to Tenants at a discounted rate. Goods supplied must be paid for within the Brewery's terms of credit by means of direct debit, unless specified otherwise. Rent and all other ancillary charges must be paid weekly in arrears.
At the start of a tenancy you will buy the Trade Inventory for your pub at a valuation agreed between licensed brokers.
While Tenants are responsible for the internal decoration of parts of the premises, Shepherd Neame will look after its external décor. A matched investment will also be considered when appropriate, which has previously resulted in the brewery and licensee investing in improving the business on a pound for pound basis, up to a maximum of £25,000. The Brewery investment will not result in any increase in your rent while the enhancement to your pub could result in increased trade.