Greene King gets rid of cooling-off

Greene King has abandoned cooling-off periods for in-coming licensees in favour of 12-month stand-alone tenancies to give hosts a flavour of running a pub.

Meanwhile, Enterprise has joined Punch in doubling the duration of cooling-off periods to 180 days.

Cooling-off periods, during which time tenants can cancel agreements if they think they've made the wrong choice, were recommended by the 2004 Trade & Industry Select Committee inquiry into pubcos.

The clause is not included in new three or 10-year agreements from Greene King's tenanted arm Pub Partners. But new year-long "foundation agreements" are offered to give a proper taste of running a pub. Pub Partners PR manager Elaine Beckett said it takes at least nine months for hosts to know if they made a right choice, so a six-month cooling-off is "pointless".

She also highlighted Pub Partners' "rigorous" induction process, which includes three interviews and a mandatory day-long Go for Growth course. This costs £150 and sees hosts' business plans scrutinised by an independent consultant. "Licensee coming to Greene King pubs are better prepared to take on the pub," she said.

Punch boss Giles Thorley said its cooling-off periods had risen from 90 to 180 days when he spoke at December's Business & Enterprise Committee inquiry.

This week, MA learnt Enterprise has doubled the duration. Head of recruitment and training Peter Grieve said: "You will definitely know at six months if [taking a pub] is good for you." Grieve said only a "handful" of hosts ever use the clause.

In November, anti-pubco campaigners told the latest Bec probe into pubcos three months was not enough.

Trade consultant Phil Dixon welcomed the moves by Punch and Enterprise. "We have major recruitment issues. This will go some way to alleviating uncertainty [for incoming licensees]."

Other tenanted and leased pubcos operate cooling-off periods. For example, Scottish & Newcastle Pub Enterprises' is set at 90 days.