The Operator Agreement
Here are some frequently asked questions which may help you decide whether the Operator Agreement is right for you.
- If I enter into the Operator Agreement are there any ingoing costs?
- There is no premium required for Stock or Fixtures & fittings when taking over an Amber Taverns site under the Operator Agreement. However a small security deposit of £500 is required within 3 months of your commencement date.
- What are the costs of setting up as a Limited Company?
- The cost of setting up a limited company varies between £50 and £250, this depends on how and who sets up the company. Amber Taverns can recommend a national firm of accountants who successfully work for a number of existing Operators. You will need to provide a copy of your Company Registration Certificate, Company Name and Company Number to Amber taverns as these will be used to set up the Operator Agreement.
- Do I need an accountant?
- Yes – because you will need to submit accounts for your limited company to Companies House.
- Will I be an Employee of Amber Taverns?
- No – You will be required to set up a limited company and be employed by that company rather than Amber Taverns
- Who will be responsible for staff and staff rotas?
- You will be directly responsible for the recruitment of staff and implementation staff rotas to satisfy the needs of the business. You will also be responsible for staff training, paying them, keeping records and any legal requirements from the HMRC or other agencies. External training requirements can also be funded by Amber Taverns and booked through your Area Manager.
- Will the staff be Employees of Amber Taverns?
- No – all staff will be employed by you and your limited company. You will pay staff out of your operator fee.
- Who will work out the staff payroll?
- You can register direct with the free HMRC online payroll facility or you can request that your accountant process payroll on your behalf. You will need to supply your PAYE reference to number to Amber Taverns as part of our due diligence compliance.
- How much will I earn with the Operator Agreement?
- You will earn a percentage of the net weekly takings for your outlet as a operator fee. There is no upper earnings limit. Via your limited company you will be responsible for paying the pub staff and maintaining adequate records.
- When do I get the management fee?
- You will deduct your percentage operator fee from the final banking at the end of the week. You will need to provide a weekly invoice to Amber Taverns from your limited company.
- What support do I get from my Area Manager?
- Generally the Area Manager will visit the outlet on a weekly basis and discuss current trade and any issues. A more formal monthly meeting will take place to discuss the P&L for the previous period and review marketing, promotions, pricing and stocks.
- Who is responsible for Stocktaking?
- Amber Taverns have appointed Capcon to undertake regular stock audits at every outlet. You will need to escort the stock taker, discuss the findings of the report and sign when you are satisfied that the report has been finalised.
- Who pays for Entertainment and Security Staff if they are required?
- Entertainment and Security budgets are reviewed regularly in consultation with Amber Taverns.
- Which bills do I have to pay?
- You are responsible for running your own limited company and via that for all staff costs, You are personally responsible for paying the TV license, Council Tax and personal contents insurance for the private accommodation. You may also be asked for a small contribution towards the telephone bill and private utility usage.
- What about maintenance issues?
- Amber Taverns are responsible for the maintenance of the property including the accommodation. We have a dedicated team of contractors who respond quickly to any issues 24/7.
- How long does the agreement last?
- The Operator Agreement is not for a particular fixed period, it is open ended. However the notice period to cancel the Operator Agreement is one month from yourself and a two week notice period from Amber Taverns.