Exclusive: JD Wetherspoon chairman Tim Martin – we’ve signed a new franchise agreement ‘in a slightly different space’: JD Wetherspoon chairman Sir Tim Martin has told Propel the company has signed a new franchise agreement “in a slightly different space”. The first Wetherspoon franchised pub opened in January 2022 in Hull University’s students’ union, followed by a second at Newcastle University in September 2023. Wetherspoon has been stepping up its franchise operations in the past year, having now opened five pubs in partnership with holiday park operator Haven, and is also targeting hotels for its pubs. Speaking following Wetherspoon’s third-quarter trading update, where it reported like-for-like sales have increased 5.1% in the year to date, Sir Tim revealed the company has a new franchise agreement in place, although at this stage could not divulge details. “All I can say at this moment is that it is the UK, and in a slightly different space to which we currently operate,” he said. “We’ve seen good results with the franchise sites we’ve opened so far. While it’s early days, we’re hearing some of the Haven sites have seen a substantial increase in trade. On the hotel front, there’s nothing to report there yet.” He said the company was continuing to investigate an international launch but those plans were “slow going”. On its website, Wetherspoon states: “To become a Wetherspoon franchisee, you need to meet certain financial and operational requirements and be able to demonstrate leadership, with the ability to work within a structured and defined operating model. Applications are welcomed from existing pub and/or hospitality operators, including single operators, students’ unions and multi-site franchise operators. Wetherspoon is open to granting worldwide franchises, including across the UK and European Union. The franchisee will be required to purchase/lease a suitable property, convert it and fund the set-up and ongoing franchising costs. There are various ways to fund a Wetherspoon franchise, with help from lenders available; however, in order to begin the process, an interested person or entity would need to have a certain level of unencumbered funds to cover a percentage of the costs. Franchise agreements run typically for five or ten years, with the option to renew. Exclusive trading areas form part of any initial franchise discussions. Wetherspoon’s managed pubs operate in a wide range of properties and locations, including towns, cities, airports, rail stations and shopping centres. The company recommends an internal customer area of at least 3,000 square feet. However, smaller pubs can also be successful. The building’s location is crucial – Wetherspoon’s experienced architects can create successful pubs from unusual spaces.” Sir Tim said real ale and cocktail sales are now exceeding pre-covid levels while wine has seen a resurgence. He added: “I always thought wine was old-fashioned but it appears to be back in fashion. Guinness is still going like a train and coffee continues to do well, while fish and chip dishes are proving popular at the moment.” Wetherspoon has seen a £1.2m increase per week in its costs following the changes to employers’ national insurance contributions and rise in the minimum wage, but Sir Tim said the business would continue opening sites and creating jobs, with five planned for the remainder of this financial year and ten in the next. Sir Tim will be among the speakers at the Excellence in Pub & Bar Retailing Conference. The all-day conference, the best attended pub and bar conference in the sector, takes place on Wednesday, 14 May at One Moorgate Place in London and is open for bookings. Sir Tim will discuss how the company plans to double its sales to £4bn in the next ten years after passing the £2bn mark last year and why his business is a true melting pot of consumers. Propel is also launching “parallel sessions” at this year’s conference, which offer the chance to deep-dive into specialist subjects. There will be a chance for teams attending the conference to break away and absorb the parallel sessions. There will be ten parallel sessions in total, which will run alongside the main conference. For the full speaker schedule, click here. Tickets are £295 plus VAT for operators and £345 plus VAT for suppliers. There is a 20% discount for operators and suppliers who are Premium Club subscribers. Email: kai.kirkman@propelinfo.com to book places.