Are you a Pub Tenant?
On 3 June 2014, the Department for Business, Innovation and Skills (BIS) announced the government's decision to create a statutory code of practice to govern the relationship between pub owning companies and their tied tenants and an independent adjudicator to monitor compliance with that code and adjudicate disputes. A "Core Code" will provide all tied tenants in England and Wales with increased transparency, fair treatment, the right to request an open market rent review if they have not had one for five years, and the right to take disputes to the adjudicator. An "Enhanced Code" will require pub companies with 500 or more tied pubs in England and Wales to offer parallel tied and free-of-tie rent assessments to potential or existing tenants if they request them.
The adjudicator will be similar to the Groceries Code Adjudicator. It will be responsible for enforcing the Core and Enhanced Codes and will have powers to arbitrate disputes, investigate systemic breaches and provide guidance on interpretation. The government also intends to give it the power to impose financial sanctions. The adjudicator and the statutory code will be established by primary legislation in due course.
If you would like further information, please contact Heidi Berry, Head of Commercial Litigation on 01284 755771.