Upon receipt of the TPT’s MRO notice (which once again we can assist with serving correctly) – the POB is obliged to offer a “full response” within 28 days.
Assuming the ‘trigger’ event was valid and the MRO notice compliant, the full response will take the form of a MRO offer.
Depending on the POB the format may differ somewhat, but effectively the POB will propose both a MRO rental, and the terms on which they propose to settle the agreement.
Currently amongst all the POB’s the proposed agreement will take the form of a new commercial lease. There is much debate around whether this is the most appropriate mechanism, as many argue the MRO could be better actioned by a more simple and cost effective Deed of Variation (DOV). Unfortunately, the Pubs Code is not entirely clear on important issue, and very much open to interpretation. Logically it’s advantageous for the POB’s to interpret the legislation in this manner, so until we receive further clarity, or more likely once the legislation is reviewed, this will continue to be the proposed mechanism.
That argument aside, the proposed lease terms need careful consideration and review. Currently the specimen leases proposed by the different POB’s vary quite significantly – and many may contain provisions less favourable that your existing agreement.
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