Day-to-day management

The Pubs Code gives tied tenants important legal rights to ensure fairness and improve negotiating strength. This includes:  

Fair dealing from your pub company

The Business Development Manager relationship 

A fair day-to-day relationship with your pub company is vital to the success of your pub. Your Business Development Manager (BDM) will be the person who provides you with ongoing support during your agreement to help you build and sustain your business. The pub company must make sure that your BDM deals with you in a fair and lawful way, gives you appropriate notes of your discussions with them, and is properly trained on your Pubs Code rights. 

A BDM is someone who your pub company employs as such, as well as anyone else who represents your pub company in negotiations with you in connection with your rent, repairs at the pub, and your current and future business plans. 

For more information about the Business Development Managers, read our factsheet.

Option to price match your premises insurance  

Where your pub company intends to charge you for an insurance policy for the pub premises, it must give you certain information about that policy at least 21 days before the policy is entered into. 

You have the right to look for suitable and comparable insurance quotes. If you find one that is cheaper, your pub company must either buy your alternative policy or agree that you will not have to pay the difference between its own policy and the cost of the policy you found. 

To find out more, read our Insurance factsheet.

Receive a blank profit and loss template on request 

To help you in your business planning, your pub company must provide you on request with a blank template for completing a profit and loss account. This is usually on their website or in the pre-tenancy information. 

No upward only rent reviews 

Your agreement cannot state that at rent review the rent can only increase, or that the rent review can only be initiated by the pub company.  

No obligation to have a gaming machine  

Your pub company is not allowed to enter into, or renew, a tenancy which says you must purchase or rent gaming machines. 

Flow monitoring devices cannot be used in isolation to monitor sales and stock 

A flow monitoring device is one which the pub company uses to measure alcohol sold at the pub for the purposes of verifying that you are not selling outside of the tie. The pub company cannot subject you to any detriment or liability by relying only on the reading of a flow monitoring device, without additional evidence in connection with the purchase and stock of alcohol at the tied pub. 

The pub company cannot subject you to detriment for exercising a Code right 

The Code prohibits a pub company from subjecting you to any detriment because you exercise or attempt to exercise any right under the Code.  A suspected breach of this requirement may be the subject of an arbitration or of regulatory action by the PCA. 

You have Code rights if you are considering renewing a pub agreement under either of the following:  

• The Landlord and Tenant Act 1954 (LTA)  
• Any contractual terms in the existing agreement (not a protected LTA tenancy)  

Please note, the duties of the pub company and your rights to information are different depending on which of the above situations apply. 

The obligations on your pub company include providing you with certain information and advice. To find out more about the duties that apply, as well as your rights to request a MRO option and (for LTA renewals) a rent proposal read our factsheet. 

If you are negotiating with your pub company to take on a new tied agreement that is not a renewal of an existing agreement, please visit the Thinking of taking on a tied pub page.  

Investment in your premises can be an important aspect of building a successful business. However, qualifying agreements for investment by the pub company in a project to make changes to the pub and increase its trade and profit can limit your right to request the MRO option.  

The investment exception 

Where you agree for the pub company to make an investment in your tied pub premises, and this is a qualifying investment under the Code, this may restrict your right to request an MRO option at either of the following points: 

• Renewal of your tied agreement 
• Receipt of a rent assessment proposal 

This restriction lasts for an amount of time agreed between you and the pub company, but this time must be reasonable and can be no longer than 7 years. 

For an investment agreement to restrict your right to request the MRO option it must be in writing, and it must fulfil certain criteria, including: 

• The pub company’s investment must be significant (equal to at least twice the rent) and relate to a project to make changes to the pub and increase its trade and profit. The pub company must demonstrate to you how this increase will be achieved 
• It sets out specified details of the investment and project, as well as how your tenancy may be affected 
• It specifies for how long after you sign the investment agreement your right to request the MRO option will be limited.

You can find out further information about the investment exception in our factsheet.

 Find out more about the MRO process.

Keeping a pub in a good state of repair will be important for you, your customers and your business. 

The Pubs Code supports effective handling of repairs to your pub, and a clear understanding of liabilities and procedures, by placing duties on the pub company to provide you with information. 

Your pub company must provide you with all required information about the management of repairs to the premises before you enter into your agreement. This includes details about who is responsible for repairs and redecorations, and how to report a problem, as well as a Schedule of Condition which records the state of repair of the property at the start of your agreement. 

The pub company must also point out any specific problems in the premises, and advise you to carry out a thorough inspection and take advice from a surveyor with experience relating to tied pubs. 

You can refer back to the information your pub company provided to you, and your agreement terms, to understand who is responsible for repairs and when they should be carried out.  

Dilapidations are works which are needed to bring your property into the standard of repair required by your agreement. They are usually your responsibility to carry out at the end of your agreement or on assignment. 

Find out more by reading our repairs and dilapidations factsheet and see the British Beer and Pub Association best practice guide on the management of repairs and dilapidations.