On 22 April 2013, the Government launched its consultation on the statutory regulation of the relationship between Pub Companies and Tenants.
The new regulation of the relationship between Pub Companies and Tenants, when brought into force, are designed to cover pub companies who have more than 500 pubs. It appears that a pub company with an aggregate total of more than 500 pubs (i.e. managed, leased and tenanted) will be expected to apply the statutory code to their leased and tenanted pubs even if that number is fewer than 500. The Government invites a discussion on whether franchise arrangements should be covered or not.
The Government proposes a statutory code of practice which will cover issues such as the following :
- Pre-contractual negotiations for those proposing to take a tenancy/lease
- Rent assessments
- Tie arrangement
- The role of the Business Development Managers
- How assignment of leases are dealt with
- Schedules of condition
- Pub Company voluntary codes of practice
- Compliance with the statutory code
- Dispute resolution
The Government proposes that an adjudicator will be appointed who will have the power to:
- Enforce the code
- Investigate any breaches
- Deal with disputes through any sanctions and fines
The consultation runs from 22 April 2013 until 14 June 2013 and details can be found on the Government website.
Should you require any further information you can contact our Alcohol & Entertainment Licensing team on 01332 340 211.