Food, Drink & Hospitality

Pubs Code for tied tenants

Your rights as a tied pub tenant under the Pubs Code. Covers Market Rent Only (MRO) option, rent assessment process, regulated pub companies, and how to raise disputes with the Pubs Code Adjudicator.

UK-wide
Guide summary

If you rent your pub from one of the six big pub companies, you can ask to pay market rent instead of being tied to their products. You must request this within 21 days of certain events like rent reviews or lease renewals. Keep records of all meetings with your pub company.

  • Request Market Rent Only (MRO) within 21 days of trigger events
  • MRO lets you choose any products and pay market rent
  • Check if your pub company is one of the six regulated ones
  • Keep records of all Business Development Manager meetings
  • Dispute inaccuracies in meeting records within 7 days
  • Rent assessments must follow RICS guidance
  • Challenge rent proposals within 21 days if you disagree
  • Raise disputes with the Pubs Code Adjudicator when needed
  • Scotland has different rules starting March 2025
  • Maximum fine for pub companies is £2,000,000
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UK-wide

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If you're a tied pub tenant with one of the six regulated pub-owning businesses (POBs), you have rights under the Pubs Code. The Code ensures you're treated fairly and can choose to go 'free of tie' through the Market Rent Only (MRO) option.

This guide explains your rights and how to exercise them.

Understanding the Pubs Code

Does the Pubs Code apply to you?

Yes, if:

  • You have a tied tenancy or lease with a regulated POB
  • Your pub is in England or Wales
  • Your POB owns 500+ tied pubs

No, if:

  • Your pub company owns fewer than 500 tied pubs
  • You're in Scotland (separate Scottish Pubs Code, in effect since 31 March 2025)
  • You're in Northern Ireland (no Pubs Code)
  • You have a free-of-tie lease

Regulated pub companies

Market Rent Only (MRO) option

MRO lets you go free of tie and pay market rent instead.

When to request MRO

Watch for these MRO trigger events:

  1. Rent assessment proposal: When your POB sends a RAP
  2. Lease renewal: When your agreement comes up for renewal
  3. Price increase: When tied product prices rise significantly
  4. Trigger event: Unexpected event affecting your trade (not your fault)

You have 21 days from the event to request MRO in writing.

Rent assessment process

Your POB must follow specific rules when assessing your rent.

Challenging a rent assessment

If you disagree with the proposed rent:

  1. Negotiate directly with your POB
  2. If no agreement within 28 days, request an Independent Assessor
  3. IA determines market rent (costs shared equally)
  4. You have 21 days to accept or reject the determination

Remember: No response within 21 days counts as rejection.

Business Development Manager requirements

Protecting yourself

  • Keep records: Note dates and content of all BDM meetings
  • Check BDM records: Review written records within 7 days
  • Dispute inaccuracies: Challenge any errors promptly
  • Flow monitoring: POB cannot penalise you based solely on flow meter readings

Raising disputes with the PCA

When to contact the PCA

  • Your POB denies an MRO event occurred
  • You believe your POB has breached the Code
  • You cannot agree MRO terms with your POB
  • Your POB's rent assessment doesn't comply with requirements

Arbitration is managed by the Chartered Institute of Arbitrators on the PCA's behalf.

Scottish Pubs Code

Scotland has its own Pubs Code, in effect since 31 March 2025.