Industry Codes of Practice - Leased and Tenanted Pubs
The codes of practice for leased and tenanted pubs govern the business relationship between pub companies and publicans operating tied public houses. It is the result of constructive dialogue between those representing pub and brewing companies with tied estates and tenant and lessee represetnatives.
The new codes of practice:
- Provide protection for prospective, new and existing tenants and lessees, consisting of small businesses and individuals
- Encapsulate industry good practice on the letting of tied pubs which pub owning companies have to meet and which are designed to deliver benefits to both parties to the agreement
- Promote transparency by requiring full disclosure of all relevant and appropriate information to ensure both parties are equipped to enter into a commercial negotiation and upon which tied lessees can rely to make a considered business decision
- Provide for an alternative dispute resolution mechanism to resolve disagreements arising at rent reviews (PIRRS) and those relating to the IFC, company codes, company practices and behavior (PICA Service)
The BBPA Position
New codes of practice have been released in July 2016. The two new codes, one for lessees and another for tenants in England and Wales, ensure that there will be a seamless transition for lessees and tenants with a pub company operating fewer than 500 pubs. A specific code for Scotland can also be found below.
Lessees and tenants covered by the code will continue to enjoy the same low-cost arbitration services for rents (PIRRS) and other disputes (PICAS) overseen by the Pub Governing Body (PGB). The British Institute of Innkeeping (BII) will continue to administer the service on behalf of the PGB.
As a requirement of IFBB and BBPA membership, all member companies will be covered by the codes. In order to make the system of self-regulation more streamlined, and as the codes already set minimum standards, companies will no longer need to produce their own company codes for accreditation. However, it is envisaged that the PGB will develop mechanisms to monitor compliance by code signatories, over time.
In total, the code covers over 4,000 pubs in England and Wales.
The new codes are available here:
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This information is provided to help those wishing to take on a tenanted or leased pub business be as well informed as possible about the costs involved in running a pub.
The Pub Governing Body has published its third annual audit of pub companies holding in excess of 100 pub leasehold agreements in England and Wales.
Report of Pub Governing Body board meetings.
The Pub Independent Rent Review Scheme (PIRRS) is a cost-effective rent review scheme to which tenants/lessees can appeal in circumstances where there is an unresolved dispute in a rent review.
The PGB audit report of pub companies with 100 or more leases, under the terms of the IFC version 6.
The Pubs Independent Conciliation and Arbitration Service (PICA-Service) offers an accessible, independent, low cost dispute resolution service, to the licensed industry.
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