Key benefits of buying a pub franchise over a pub tenancy

Ale Hub is a family run business with 9 pubs currently operating across the Midlands.  They offer a range of craft ales and quality lagers, together with gins, wines and cocktails, in a traditional ale bar environment. 

Due to the success of their pubs, Ale Hub bars are generating in excess of £1.5million (net of VAT) per year, they are now franchising.  

However, one FAQ that comes up for them all the time is, why should I buy an Ale Hub franchise over taking a pub tenancy?  

To address this, Connor McDiarmid, Founder of Ale Hub, has highlighted the key benefits of buying a pub franchise over a pub tenancy:

• Own a business that you can sell for an EBITDA multiplier. In a tenancy you give the pub back to the brewery when you want to end the tenancy, or you can attempt to sell it to somebody else. With a franchise you own the whole business so can get a much better price.  
• Achieve a better work/life balance, work as many hours as you feel comfortable with. Most tenants work 50-60 hour weeks to make ends meet and can’t afford to put a manager in as well. With an Ale Hub Franchise you can put a manager into the pub and still earn a living.
• Keep 100% of your profit. Most tenancy’s are profit share agreements with the brewery being able to adjust the agreement in order to take more profit for themselves or set higher targets for the tenants.
• Build your customer base from the ground up. As a new business you can create a space for your ideal clientele, as opposed to taking on a tenancy with an existing clientele which may not be what you are looking for.
• Brand new pub built from scratch so no historic negative reviews or preconceptions. Existing pubs will have preconceptions from customers from past tenants so it may be tricky to win back old customers if the previous tenant did not do a good job.
• Choose location that suits you (with our approval). We are building a brand new pub so can choose the location, a tenant will have to move into a pub that has a vacancy which may not be in area they want to travel to.

Ale hub is looking for franchisees across the UK.  No experience is required.

Interested and want to know more about Ale Hub?

The Ale Hub profile outlines all aspects of their franchise opportunity and allows you to contact them for further information or to ask a question.

View franchise profile