A lot of confusion still surrounds the notion of a ‘Market Rent Only (MRO)’ deal and debate still rages between campaign groups and the Pub Owning Business’ (POB’s) as to how this new legislative right is to be exercised.
In simplistic terms, a MRO deal is the mechanism by which a Tied Pub Tenant (TPT) may consider a Free of Tie (FOT) rental offer – which affords the TPT the right to simply pay the POB a commercial rent for the premises (Pub) and purchase all products on the open market. The right to consider this option is afforded to TPT’s by the Pubs Code at certain ‘trigger’ events – most commonly at a rent review or agreement renewal.
More information regarding trigger events can be found on our ‘Trigger events’ page here.
In order to exercise this right, the TPT must comply with the process of the Pubs Code, and formally request a MRO offer in writing within a defined time limit of the ‘trigger event’ occurrence. In the case of a rent review – within 21 days of receipt of the tied rental assessment proposal. Usually this can be served at any point up until 6 months before the date of your cyclical rent review – which is usually defined within your lease agreement.
Unfortunately, although the request may be fairly straightforward, the process by which the MRO offer is negotiated and concluded is far from simple.
For more information we have put together a detailed guide – so please read our ‘MRO Process’ page for further information.