Pubs Code: 10 things tied tenants need to know
- MRO option will become available no matter what level of rent is proposed e.g. higher or lower or zero / no change;
- Tied Tenants will have a Parallel Rent Assessment (PRA) to enable them to consider a free-of-tie rent offer alongside a tied rent review proposal;
- A ‘significant price increase’ could trigger an MRO option;
- The information requirements on pub-owning businesses enforced by the Code will give protections to tied pub tenants and reduce information asymmetry;
- Clarification that the Pub Companies are permitted to carry out routine checks – but not to negotiate terms – before providing scheduled information to tenants; includes new tenants
- A waiver to the right to have an MRO option in exchange for a significant investment in the tied pub– including triggers on the minimum size of any such an investment and the period of the waiver.
- Tenancy at Will (TAW) the maximum length of short agreement which should be exempted from Pubs Code provisions is set at 12 months;
- There is clear definition of franchises which would be exempt from some parts of the Pubs Code;
- To bring about Code provisions relating to the role and duties of compliance officers and to ensure there is appropriate training of Pub Company business development managers; and that new tenants also undertake awareness training.
- The charges for bringing a case to the Pubs Code Adjudicator is also set at £200
Come to UK's first MRO workshop: with exclusive content from THE experts which is taking place on the 11th May (click here) learn from tied trade experts and major contributors to the Pubs Code Simon Clarke - Chris Wright - David Mountford