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.
Understanding the Pubs Code
Does the Pubs Code apply to you?
The Code applies if your pub is in England or Wales and you have a tied tenancy or lease with a pub-owning business that owns 500 or more tied pubs. It does not apply if your pub company owns fewer than 500 tied pubs, or if 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.
Rent assessment process
Your POB must follow specific rules when assessing your rent.
Challenging a rent assessment
If you disagree with the proposed rent:
- Negotiate directly with your POB
- If no agreement within 28 days, request an Independent Assessor
- IA determines market rent (costs shared equally)
- You have 21 days to accept or reject the determination
If you do not respond within 21 days, you are treated as having rejected it.
Business Development Manager requirements
Protecting yourself
- Note the dates and content of all meetings with your BDM.
- Check the BDM's written record and dispute any errors within 7 days.
- Remember your POB cannot penalise you on flow meter readings alone.
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.
Legal basis
Primary legislation and key regulations