Type of Pubs Code agreements

The Pubs Code applies to tied pub tenancy agreements and licenses of any duration. This includes long leases. 

In the pub trade, a tenancy will be an agreement, usually for 3-5 years, with shared responsibility for repairs. 

With a licence, the landlord retains greater control over the property and may place restrictions on how the occupier can use it.

A lease is usually for a longer term, places sole responsibility on the leaseholder for repairs and maintenance, and there are rent reviews at least every five years.  

Tied pub operators who have a tenancy (including a lease) or a licence have the benefit of full rights under the Pubs Code. Those negotiating for a tied agreement also have protections. 

A leaseholder can agree to the investment exception from the right to request a Market Rent Only offer for a period of years.  

A short agreement in the Pubs Code is a tied agreement which is either a tenancy at will or a tied tenancy (including when considered together with any other agreements) which entitles the tied tenant to occupy the pub for no more than 12 months. 

While most rights in the Pubs Code do not apply if you are on a short agreement, you do have some Code rights to information before you enter into a short agreement.  

Your pub company has also agreed to meet these minimum standards in dealing with short agreements.

Find out more about your rights in the short agreements factsheet. The PCA has also published minimum standards in relation to short agreements.

If you are a tied pub tenant with a pub franchise agreement you have many Code rights, but you do not have the right to use the Market Rent Only (MRO) process. Some parts of the Code, including those related to rent proposals and rent assessment proposals, do not apply to you. 

A tied pub agreement is a pub franchise agreement if it meets all the requirements set out in the Code. This includes: 

• That you take a fixed percentage of the pub’s turnover 
• Requires the pub company to offer marketing, training and other business support to you 
• You do not pay rent 
• You have the right to use the pub company’s relevant business model. 

The pub franchise agreements factsheet explains what a pub franchise agreement is under the Pubs Code and your rights if you have a pub franchise agreement.  

The PCA has outlined difficulties in applying the Pubs Code legislation to some agreement types and seeks evidence and views. Read more.