If you know how the pub trade works, but want more support and flexibility, then our unique 10 -year Punch Buying Club Lease could be the right choice for you. It allows you to balance your rental costs against the amount you pay for your tied products. You can choose to pay the full rent in return for extra discounts on your tied beer and cider, or keep your rental payments down by paying slightly higher product prices.
The Punch Buying Club Lease is attractive to our entrepreneurial partners as it offers a longer term and more flexible agreement that can be transferred (sold on) before the end of the term, earning back any goodwill built up in the business.
There are two types of Punch Buying Club Lease - Option 1 and Option 2.
Option 1 delivers an average total discount of £100 per barrel across a basket of 20 tied products. These are the products you agree to buy through the Punch Buying Club, based on an agreed, realistic target number of barrels for your particular pub. Option 2 delivers an average discount of £160 per barrel across the same basket of products, in return for a higher monthly rent.
Both options offer a volume growth incentive, which means if you sell more than your target number of barrels, you get an additional discount, up to a maximum of £180 per barrel.
Under the Punch Buying Club Lease, you are free to buy your wines, minerals and spirits, and to rent vending and entertainment machines, from any supplier you like. You can of course source them through Punch if you prefer, with 24-hour online ordering on the Punch Buying Club website and competitive prices.
Quality local ales and international beers are very important in today’s pub trade. With the Punch Buying Club Lease, you may negotiate to include World Beers in your discount basket, and we also offer a ‘buy one, get one free-of-tie’ option on locally-produced Cask Ales so you can keep your real ale fans happy.
Both options offer a 10-year minimum lease term. During this time we will not review your rent, but you may ask for a review. Your rent will go up annually in line with inflation (based on the retail price index).
Partners may also transfer (sell on) a Punch Buying Club lease before the end of the term, earning back any goodwill built up in the business. These pubs are advertised as transfers and normally you are required to pay a transfer premium to take over this existing agreement. The benefit is that you are buying an established business - a good transfer will have a lot of goodwill already within the business, it should be financially viable, have a strong customer base and excellent profitability and prospects for growth.
For a sample Punch Buying Club Lease agreement, click here.