The Royal Oak in Earlsdon sought an MRO lease for greater control over its product range, but the landlord imposed an excessive stocking requirement, restricting supplier choice. MDE Pub Consultants took the case to arbitration, challenging the unfair terms and ensuring the tenant’s right to operate independently.
The Royal Oak in Earlsdon, a well-established pub with a loyal customer base, sought to go free-of-tie under the Market Rent Only (MRO) option to gain greater control over its beer selection and supplier agreements. However, the landlord’s MRO lease proposal included an excessive stocking requirement, forcing the tenant to continue purchasing a large proportion of beer products from the landlord’s approved list.
This defeated the purpose of going free-of-tie, severely limiting the pub’s ability to source competitively priced and diverse products. Recognising that these terms were unreasonable, the tenant turned to MDE Pub Consultants for expert support in challenging the lease terms.
Understanding the impact of the restrictive stocking requirement, we:
✅ Referred the MRO lease terms to the Pubs Code Adjudicator, arguing that the conditions were inconsistent with the principles of the MRO process.
✅ Presented a compelling case before an independent arbitrator, demonstrating how the proposed stocking requirement restricted product choice and undermined the spirit of MRO.
✅ Challenged the necessity of the landlord’s terms, proving that a significantly reduced stocking requirement would still meet reasonable commercial interests while ensuring true independence for the tenant.
By leveraging our extensive experience in arbitration and Pubs Code negotiations, we successfully pushed back against the landlord’s unfair proposal.
As a result of our expert representation and strategic arguments, the arbitrator ruled in favour of the tenant, leading to:
✅ A significantly reduced stocking requirement, allowing the pub to source a far greater range of beer products from independent suppliers.
✅ A fairer MRO lease that upholds the principles of free-of-tie operation.
✅ Greater product choice and flexibility, enabling the Royal Oak to curate a diverse and high-quality selection of drinks that better suit their business and customers.
This case highlights how some landlords attempt to impose restrictive conditions within MRO lease agreements that undermine the core principle of free-of-tie trading. Without expert representation, many tenants may unknowingly accept unfair terms, limiting the benefits of moving to MRO.
At MDE Pub Consultants, we challenge unreasonable lease conditions to ensure tenants receive a fair deal that genuinely allows them to operate independently.
📣 A Word from Howard Grundy, Tenant at The Royal Oak, Earlsdon
“Going free-of-tie should mean exactly that—freedom to choose the products that work best for our business. However, the initial MRO lease proposal from our landlord included an unreasonable stocking requirement that would have severely restricted our ability to source the beers our customers want.
Michael and MDE Pub Consultants took the fight to arbitration, expertly arguing our case before the Pubs Code Adjudicator. Thanks to their knowledge and determination, we secured a significantly reduced stocking requirement, allowing us to bring in a wider range of products at competitive prices.
Without their support, we could have ended up with a so-called ‘free-of-tie’ lease that still kept us tied in many ways. Now, we have real flexibility, better supplier options, and a stronger business as a result. I can’t recommend MDE Pub Consultants highly enough to any tenant looking to challenge unfair lease terms.”
💬 Facing unfair MRO lease terms? Get in touch to ensure you get the freedom and flexibility your business deserves.