Frequently Asked Questions
Who would be responsible for repairs and maintenance of the building?
The Tenant will enter into a lease with our Community Benefit Society which will require them to maintain the property at their own cost. Any alterations to the property for the benefit of the business would also have to be approved by the Management Committee of the CBS under the terms of the lease and paid for by the Tenant. That said, we have made provision in our forecasts for repairs that may reasonably be deemed to be the responsibility of the Landlord. Examples may include mains utilities repairs, roof repairs and the like.
Who decides how The White Swan is run as a business?
The appointed Tenant will have discretion as to how to run the business and the Management Committee and Members have no jurisdiction over the beers, menu or type of coffee! That said, the Management Committee will identify a suitable tenant to appoint and any tenant seeking to create a successful business in a community owned pub would do well to listen to its customers. The Management Committee will set out key requirements and service levels in the Tenancy agreement (e.g. commitment to community activities and initiatives) and the Management Committee will provide a formal method for feedback.
What is the appointment process for The Management Committee and for the Tenant?
The SOS Steering Group have put themselves forward to form the initial Management Committee and will stand for election at the first AGM. Additionally, there will be further positions available on the Management Committee for which elections will be held.
How long will the Tenancy run for?
It is envisaged that a tenancy would run for a minimum of 5 years with an option to extend for 2 further years but with adequate break clauses and notice periods to ensure an unsuccessful or unpopular tenant is not a burden to the business.
How sure can we be that the pub will be run by a competent tenant?
The appointment of the Tenant will be one of the most critical elements of the project. The Management Committee will interview candidates and seek detailed references from past Landlords / Employers. The expectations of community focused initiatives and services will be emphasised. We will seek a detailed proposal from candidates showing anticipated performance of the business and, as part of our commitment to offer a low rent period, a demonstration of some capital investment as part of their business plan. We will schedule regular meetings with the Tenant in the early stages to make sure there is opportunity for feedback on both sides – always remembering that our role is not to micro manage performance but to create an environment whereby a competent tenant can reach success.
What will happen if the pub business fails and the freehold is sold at a profit?
In these circumstances, there is a sequence of priorities regarding the distribution of funds:
1. Debtors to White Swan Community Pub Limited would be paid.
2. Administrative expenditure would be deducted from the sale proceeds.
3. Investors would be repaid, including accrued interest if applicable.
4. Residual profit would be distributed to other Community Projects.
How will I know how the White Swan Business is performing?
Our website will be updated regularly with news and comments to keep the community informed of all things relating to the project – including indicative performance of the White Swan. The CBS will also be holding Annual General Meetings to keep all investors updated.
Will Members have to help out with the running of the pub?
No. The structure of our Community Benefit Society is that of freehold ownership and the appointment of a tenant who is fully responsible for managing their business. Voluntary help may possibly be useful, for example at something like a Beer and Music Festival where volunteer help may be appreciated. Additionally, there may be community activities that are not really commercially viable for a tenant but the Tenant would allow volunteers to help deliver e.g. helping with initiatives designed to ease loneliness and isolation, coffee mornings, learning events etc.
Will investors be asked to contribute more funds at a later date?
We do not expect this. However, it is good practice to constantly seek new Members for the Community Benefit Society. This allows sufficient funds to repay Members who seek to extract their investment and to broaden membership.
How can I find out more about the project?
Each member of the Management Committee will also be happy to answer any questions you may have.
Who are the people behind this project? Do they have a personal interest?
The Management Committee consists of a group of local residents who care passionately about saving the White Swan from residential development and ensuring its position as part of the community hub of Thornton-le-Clay and Foston. They have voluntarily contributed a large amount of time to the project and some personal financial outlay. They will have no personal financial interest in the project above and beyond their own investment in community shares alongside any other investor. Their personal profiles have been outlined in this business case.
What advice has the Management Committee taken on running a community pub?
The Management Committee has taken advice and received support from multiple sources including The Plunkett Foundation, Pub is the Hub, professional advisers from many disciplines, CAMRA and of course the community itself.
What happens if I have paid for my shares but the purchase falls through for whatever reason?
Your money will be returned to you net of any costs properly incurred to facilitate the transaction. It is likely that the CBS may incur some costs which would be netted off the repayment but this would be extremely minimal and spread across the entire paid up subscription.
Do my shares give me voting rights?
Yes. This is a democratic structure based on “One-Member-One-Vote", regardless of the size of your investment.
How do I get my money back once I am a shareholder?
You may request your money back by giving 3 months notice of your intentions to the Management Committee. Please note that you will not be able to withdraw your money during the first two years. You cannot sell or transfer your shares directly to another investor and withdrawals must be funded from surpluses or new capital raised from selling shares. The Management Committee may suspend withdrawals depending on the long-term interests of the Society, the need to maintain adequate reserves, and the commitment to the community.
Can I transfer my shares to someone else?
No - unless you die or become bankrupt.
If I do invest, what is the extent of my liability?
Your liability does not exceed the price of your shares.