Pubs Code: 10 things tied tenants need to know

BIS

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 

 

Chris Wright

Risk managment, specialist debt & credit advisor

Website: twinpier.co.uk
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