What are the duties of pub-owning companies to tenants?

The factsheet explains what POBs are required to do for new tied pub tenants when they are considering entering into a new tied pub agreement.

It revealed that under the code, the regulated pub business must provide certain information and must also advise the tenant to seek their own professional advice and complete pubs entry training.

A POB must provide information ​to the tied tenant on the Pubs Code and any code of practice it may have for dealings with tied pubs. It must also provide full information about the type of tenancy or licence,  a full and clear description of the premises, and information about fixtures and fittings. 

Obligations

The factsheet also said that information about the respective maintenance and repair must be provided as well as obligations in relation to the purchase of tied products and services. 

Information must also be provided on whether the tenancy may be assigned or sold. 

The advice, support and assistance available during the tenancy or licence, circumstances when the POB may be willing to amend its standard terms, and the events which entitle the tenant to seek the market-rent-only (MRO) option must also be provided. 

Insurance

The PCA also highlighted the responsibilities of the POB regarding insurance. Only last month the PCA revealed​ that tenants were not aware of their insurance rights, including the right to price match the POB policy.

The POB must also endure the tenant has prepared a sustainable business plan. The tenant must have produced the business plan after consideration to independent legal advice.