Scotland is known for its rich pub culture, and Dundee, with its vibrant mix of historic locals and modern pubs, is no exception. However, behind the bar, many pub tenants have long faced challenges under tied pub agreements: restricted supplier options, rising costs, and limited negotiating power. In 2025, that’s changing. A new set of rules, the Scottish Pubs Code 2025, is being introduced to create a fairer and more transparent relationship between pub tenants and landlords (known as pub-owning businesses). If you’re a tenant or thinking of taking on a lease in Dundee, here’s what you need to know and how to prepare.
Understanding the Scottish Pubs Code 2025
The Scottish Pubs Code officially came into force on 31 March 2025, marking a significant shift in how tied pub tenants in Scotland are treated. Overseen by the Scottish Pubs Code Adjudicator (SPAC 2025), the Code introduces a framework aimed at ensuring fairness, transparency, and balance between pub-owning businesses and their tied tenants.
From 30 June 2025, tenants will gain the right to request a Market Rent Only (MRO) lease at certain points, such as the halfway mark of your lease term, or even up to six months before. This means the option to go free-of-tie, paying an independently assessed market rent instead of remaining tied to purchasing products or services from the landlord.

What’s Changing in 2025 and Guidance for Tied Pub Tenants
Starting from 30 June 2025, tied pub tenants not only in Dundee but also in Scotland will have new rights under the Code. Here are the key changes:
1. Right to Request a Market Rent Only (MRO) Lease
This is one of the biggest changes. At certain key points in your lease, you can ask to switch from a tied lease to a Market Rent Only (MRO) lease. That means:
- You no longer have to buy products from the pub company
- You pay a fair market rent, assessed independently
- You gain more control over what you sell and where you buy it
Under the Scottish Pubs Code, tied tenants are now granted a universal right to request a Market Rent Only (MRO) option, a provision previously unavailable in Scotland. This entitlement becomes exercisable at a specific point in the lease term — namely, upon reaching the halfway point of the agreement (e.g., in the fifth year of a ten-year lease). Tenants may formally initiate this request by submitting a written notice, which is permissible up to six months prior to the aforementioned halfway date.
2. Greater Transparency
The Scottish Pubs Code introduces Greater Transparency, requiring pub-owning businesses to:
- Share clear and timely information about rent and other obligations.
- Provide a Rent Assessment Proposal (RAP) when a rent review or assessment is required, detailing how the proposed rent was calculated.
- Act fairly and reasonably during all negotiations.
These provisions ensure tenants have full understanding and a more balanced position in their dealings with landlords.
3. Dispute Resolution via Scottish Pubs Code Adjudication
In situations where a tied pub tenant and a pub-owning business are unable to agree on other terms of the Market Rent Only (MRO) lease, excluding the commencement date which is fixed, either party may apply for adjudication. This process will be facilitated by the Scottish Pubs Code Adjudicator (SPAC), who is mandated to resolve the contentious issue through a fair and structured process in accordance with the provisions of the Scottish Pubs Code.

Why This Matters for Dundee Pub Tenants
For pub tenants in Dundee, this Code could be a new era. It allows more freedom to choose what’s best for your business, rather than being locked into expensive supply deals. If you’ve ever felt:
- Stuck with high wholesale prices
- Unable to offer the brands your customers ask for
- Pressured during lease renewals or rent negotiations
How MDE Pub Consultants Can Support You
Navigating the Scottish Pubs Code, especially requesting an MRO lease, can be complex. That’s where MDE Pub Consultants comes in. We specialise in supporting tied tenants in Scotland, especially in cities like Dundee. Our services include:
✅ Tied Pub Lease Reviews – We’ll review your current lease to identify your rights
✅ MRO Lease Advice – Help you prepare, serve, and follow through with MRO requests
✅ Rent Assessment Guidance – Make sure your proposed rent is fair and justified
✅ Adjudication Support – Guide you through the SPAC process if a dispute arises
✅ Strategic Business Advice – Support your long-term goals, from negotiation to independence
Whether you’re renewing a lease, looking to break free of a tie, or just want to know your rights, we’re here to help.
Have questions about your MRO rights or the Scottish Pubs Code? MDE Pub Consultants has the answers. Get in touch!
Email: info@mdepc.co.uk
Phone: 0330 088 3133