Jargon Buster
A Guide to Licensed Trade Language:-
- Assignability/Assignment: With certain types of S&NPC lease and after a given period, the lessee has the opportunity to sell on (or assign) the remaining term at a value (known as the lease premium) which reflects the goodwill they have built up in the business.
- Barrel/Barrelage: The standard measurement of beer in the licensed trade is in barrels. A barrel comprises 36 gallons of beer. A keg, typically, comprises 11 gallons. The number of kegs sold within a pub will be added together to produce the total number of barrels, commonly known as the annual barrelage.
- Deposit: The money that is paid to S&NPC at ingoing and held in an interest-bearing deposit account for the duration of the lease. This sum is made up of a proportion of the rent and estimated annual purchases from the Company. The deposit plus interest is normally fully refundable when the lessee leaves, with deductions being made for any dilapidations or outstanding accounts to Scottish & Newcastle.
- Dilapidations (Schedule of): Repairs for which the lessee has responsibility. This is usually carried out at changeover, in order to ensure that all repairs have been completed, prior to a new lessee taking over.
- DoV: Deed of Variation. Literally, a deed which varies certain conditions of the lease. Most typically, a DoV enables off-invoice discounts to be paid to the lessee for all purchases from Heineken UK Ltd.
- DPS/PM: Designated Premises Supervisor. It is a condition of licencing in England & Wales that a pub cannot operate without a DPS. The DPS must also be a Personal Licence Holder. In Scotland, the equivalent is known as the Premises Manager (PM).
- EPoS: Electronic Point of Sale -: essentially, the till(s) or cash register.
- F&F: Fixtures & fittings. The furniture, carpets, curtains etc. associated with the business. These will be valued on the day of transfer and a price agreed between the valuers acting for the incoming and outgoing lessees. This price is then paid to the outgoing lessee.
- FMT: Fair Maintainable Trade. The estimated annual turnover of the pub with an average lessee.
- FRI: Fully repairing and insuring. An FRI lease requires the lessee to put and keep the property in good repair and renew any part of the property if repair becomes impractical.
- GP (Gross Profit)%: The percentage of gross turnover (takings) which remains after the cost of sales (ie. the cost of goods) has been deducted.
- Ingoing capital: The amount of money paid to S&NPC in order to take on a lease. This is normally part of the total Start-Up Capital which is the overall amount of money required to set up a new business and will include funds which are not payable to S&NPC eg. bank loans, working capital, deposits with utility companies, etc. Lease premium: The value of the goodwill which has been built up in a business and which may be payable upon transfer of the lease.
- Landlord & Tenant Act 1954: This is the statutory instrument that gives security of tenure to businesses. This means that even when a lease agreement comes to an end through time, a statutory tenancy continues until it is brought to an end in accordance with the Act. This means either the Landlord can bring an agreement to an end by serving a Section 25 notice or a Tenant can bring an agreement to an end by serving a Section 26 notice. A Landlord can only oppose a new agreement being granted under limited grounds set out in the Act. The Landlord and Tenant Act does not apply in Scotland.
- NCPLH (National Certificate for Personal Licence Holders): The qualification required to enable someone to hold a Personal Licence in England and Wales - see DPS.
- PPL: Premium Packaged Lager ie. Bottled lager, typically 5% ABV.
- PPS: Premium Packaged Spirits, part of the RTD (Ready-to-Drink) alcoholic beverages category. Eg. Bacardi Breezer, Smirnoff Ice.
- PRS & PPL: Performing Rights Society & Phonographic Performance Limited Services. Both a PRS and a PPL licence is required in order to broadcast recorded music on your premises.
- RPI: Retail Price Index. A measure of inflation produced by tracking price changes across a range of commonly-purchased items.
- SCPLH (Scottish Certificate for Personal Licence Holders): The qualification required to enable someone to hold a Personal Licence in Scotland and become a Premises Manager (PM).
- Stamp duty: Land transactions (this includes the granting of leases) are subject to Stamp Duty Land Tax. Full details of the applicable rates are found on the HM Revenue & Customs website.
- Stock & Glassware: Consumable stock, (food, drink) which is still in date, usable glassware, utensils and cleaning material associated with the business.
- Structural survey: A survey of the structure of the building which should be carried out by a suitably qualified third party in order to identify any potential repairs. This is recommended for anyone considering a lease assignment of an FRI lease.
- Tenant/Tenancy: Someone who occupies a pub under the terms and conditions of a rent-bearing agreement. All SNPC pubs are leased and we refer to our clients throughout this site as "lessees".
- TUPE: Transfer of Undertakings (Protection of Employment) Regulations (TUPE). Any staff in the pub you are taking over will be protected by employment law, which means, in essence, that you must employ those staff. You will be responsible for the pay and conditions of employees transferred to you and any employee claims or problems which the current lessee is experiencing as well as day to day issues such as outstanding holiday allowances.
- Wet & Dry sales: Sales of drinks (wet) and food/snacks (dry) in a pub.