On Thursday 21st July 2016 the Small Business, Enterprise and Employment Act 2015 implemented a statutory Pubs Code and independent adjudicator to regulate the relationship between tied pub tenants and the large pub-owning Companies. The outcome is to ensure that a tied tenant should be no worse off than a free of tie tenant, and that businesses between tied tenants and large pub owning companies are carried out in a fair and lawful manner.
The new pubs code will only apply to pubs located in England and Wales that are owned by Pub Companies that have 500 or more tied pubs. This currently includes Greene King, Punch, Enterprise, Admiral, Marston’s and Star Pubs and Bars.
Market Rent Only Option
The new pubs code has introduced a “Market Rent Only Option”. This is an option which will allow a tied tenant to become free of tie and pay the pub owning company a market set rent only. There are four types of events which entitle a tied tenant to request the Market Rent Only Option:
- A tenancy renewal
- Following receipt of a rent assessment proposal as part of a rent review process
- Where there has been a significant increase in price in a tied product or service
- Where an event has occurred that significantly impacts on trade
To request the option to go free of tie at any of these trigger points, a tied tenant must give notice to their pub owning company in writing, which must be received by the pub owning company within 21 days of the event occurring. The Market Rent Only notice must include:
- The tied tenants name, address, email address (if applicable) and telephone number
- The date on which the notice is being sent
- The name and the address of the tied pub to which the MRO request relates
- The date on which the MRO event occurred
- A description of the MRO event on which the tied tenant is relying.
Follow this link to find out more.
Gaming Machines
Included in the new Pubs Code is the removal of the AWP Tie. The following quote has been taken from part 10 item 47 of the Pubs Code 2016:
Gaming machines
- A pub-owning business:
(a) Must not enter into a new tenancy or licence and
(b) Must not renew a tenancy or a licence
Which requires a tied pub tenant to purchase or rent gaming machines.
Click here to find out more – Part 10, item 47 (page 34) for Gaming Machines
Why Switch?
Whether you are taking on a new Lease or renewing an existing lease, a pub company can no longer tie you into having gaming and amusement machines supplied by one of their chosen nominated operators. If you are currently tied on your gaming machines, at your next rent review you will be able to release yourself of the tie and use an independent regional operator such as TVC Leisure, rather than the large national companies.
TVC Leisure are an independent family run regional operator, supplying gaming and amusement machines to pubs, clubs and licensed premises throughout Berkshire, Hampshire, Surrey, London and the surrounding areas.
TVC Leisure’s customers benefit from having all the latest high performing gaming and amusement machines supplied to their business, backed up by our professional, reliable and expert service 364 days a year. We offer a 2 hour repair service 7 days a week, reliable routine collection services, and regular machine changes and updates.
Our Personal Service Promise
TVC Leisure’s unique service offering also includes our industry leading exclusive service run. Unlike our competition who will only call in to your venue when there is an issue, we make fortnightly visits to every one of our customers to clean, service and maintain our machines and ensure everything is in top working condition. This is central to our personal service promise and a core driver in our ability to build fantastic working relationships with our client base. By calling in on such a regular basis it also allows us to have complete visibility across all accounts to ensure any requests or issues are dealt with immediately.
We are also flexible in our approach and can supply our machines on very competitive terms that are best suited to your business.
Weekly Rentals – Pay a fixed weekly rental and keep 100% of the money generated from your machines
No Risk – No Cost – Revenue Share – Have the latest machines installed completely free of charge and receive an agreed upon percentage of the money collected after the deduction of any taxes due.
Contact TVC Leisure today for information on our products, services and a free no obligation quote.
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