M&B sets franchise pubs sale deadline
Mitchells & Butlers (M&B) has given its franchisees until Wednesday 30 June to submit "full and final offers" to buy the freeholds of their pubs.
Franchisees have been receiving phonecalls from their area managers giving them the heads up on the offers deadline.
It is understood that some franchises have been furnished with the freehold value of their pubs.
One franchisee told the Morning Advertiser: "There is no priority for franchisees but I was told that if my bid is ahead of the market value I could well get it.
We are getting the chance to acquire the freehold although M&B is obviously keeping its options open."
The company has just under 90 franchised pubs with an average weekly turnover of around £13,500 per pub per week.
Chief executive Adam Fowle has confirmed that its franchise division is non-core as it seeks to double the size of six key drive brands within five years.
He told the Morning Advertiser earlier this month: "We have no ideological issue about selling pubs in singles. It's obviously easier selling pubs in groups but it's about getting best value where were can."
The franchise division's pubs are the best quality package of tenanted poubs in the sector with turnover between two and three times the tenanted sector average.
It has a number of pubs in the Home Counties where turnover is as high as £40,000 per pub per week.
Existing franchisees include some of the sector's best known multiple retailers: Paul Salisbury and Paul Hales, of Lovely Pubs, Nick Pring and Malcolm Heap, of Realpubs, Chris Gerard of Innventure, Jon and Paula Briscoe, of Esp8, and Chris Bulaitis of Ever So Sensible.
