The Pubs Code Regulations 2016 were introduced to protect tied pub tenants, ensuring they have greater choice and fairer lease terms. If you lease a pub from a regulated landlord (owning 500+ tied pubs), you have legal rights under the Pubs Code, including the ability to request a Market Rent Only (MRO) lease at key trigger points.
Switching to an MRO lease allows you to break free from product and service ties, giving you greater flexibility, better supplier options, and potentially lower costs—empowering you to run a more profitable and independent business.
At MDE Pub Consultants, we specialise in guiding tied tenants through the MRO process, from notice submission to arbitration, ensuring you secure the best possible outcome. With extensive experience in rent negotiations, dispute resolution, and Pubs Code compliance, we provide expert, tenant-focused advice every step of the way.
The Pubs Code ensures that tied tenants are not disadvantaged when compared to those running free-of-tie pubs. It codifies clear guidelines on rental terms, product ties, and dispute resolution, thus promoting transparency in an industry where deals have historically varied significantly.
Tenants gain the legal right to consider an MRO lease during key events such as rent reviews or lease renewals. This option gives you greater flexibility to assess which arrangement best supports your business, whether staying tied or converting to an MRO.
The Pubs Code Adjudicator (PCA) plays a central role in resolving disputes. If you and your landlord cannot agree on an MRO proposal or any aspect of the tied arrangement, you have the right to refer the matter for arbitration, helping ensure a fair outcome.
1. Fairness for Tied Tenants
You should be no worse off than if you were leasing a free-of-tie pub. This principle underpins rent assessments, product pricing, and other contractual terms.
2. MRO Lease Option
At the time of a rent review or lease renewal, you can request an MRO proposal from your landlord. This option removes the tied requirement, enabling you to source products independently and potentially negotiate more competitive supply deals.
3. Robust Arbitration Process
Should disagreements arise over MRO lease terms, the PCA provides a structured arbitration process designed to resolve disputes swiftly and justly.
4. Transparency & Information Sharing
Pub-owning businesses are legally obligated to share pertinent information—including rent assessments, underlying business assumptions, and comparable pub data—so that you can make informed decisions.
1. Trigger Point Occurs
Typically, this is at rent review or lease renewal. Your pub company may propose new terms, giving you the legal right to explore an MRO alternative.
2. Formal Request & Proposal
You issue a MRO notice to your landlord. The landlord then provides an MRO proposal that must comply with the Code—detailing proposed rents, durations, and other crucial terms.
3. Evaluating Tied vs. MRO
You compare the proposed tied terms with an MRO lease. An MRO arrangement can allow greater operational control, but it may come with a different rent level. Careful financial analysis is crucial.
4. Negotiation & Possible Arbitration
Should you and your landlord fail to agree on the MRO proposal, you may refer the matter to the Pubs Code Adjudicator. Arbitration involves both parties presenting evidence, ensuring a legally binding resolution.
5. Implementation or Exit
If the arbitration or negotiation concludes successfully, you move forward under the agreed terms. If at any point you decide the proposed terms do not serve your business goals, you retain the option to remain tied or potentially assign your lease to another party.
1. Deep Sector Knowledge
We specialise exclusively in pub tenancies, MRO processes, and the Pubs Code, offering unparalleled expertise in this niche.
2. Proactive Approach
Beyond compliance, we focus on opportunity identification—helping you seize commercial advantages, reduce costs, and future-proof your pub business.
3. Client-Centric Service
Whether you’re a single-site tenant seeking a fair rent or a pub company managing a portfolio, our solutions are tailoured to your unique goals and challenges.
4. Proven Success in Arbitration
Our in-depth experience in building robust arbitration cases ensures that your position is strongly supported—maximising the likelihood of a favourable outcome.
5. Long-Term Partnership
We don’t just advise on one-off issues. We build lasting relationships, offering continuous guidance as regulations evolve and market conditions shift.
Navigating the Pubs Code can be complex and time-sensitive, particularly if you’re approaching a rent review or lease renewal. Whether you’re a tenant looking to elect MRO or a landlord keen to ensure full compliance, MDE Pub Consultants provides the strategic guidance and hands-on support you need.
Call: 0330 088 3133
Email: info@mdepc.co.uk
Website: www.mdepc.co.uk
Secure a fair deal and protect your business interests—contact MDE Pub Consultants today.