Breaking Beer Ties and Covid
Beer Ties can be broken by using the pub’s code,
Tied pubs can have a market rent only agreement (MRO) and go free of tie, but tenants need to know their trigger opportunities to get an MRO offer.
Most triggers to going free of tie are unforced, that is to say, they occur contractually or with the passing of time e.g. at rent review, lease renewal, 5 years after concluding the last rent.
Other ways to trigger your right to a market rent are “forced”, that is to say, if you can find fault in previous rent offers you can have the offer remade or if the pub’s trading situation changes.
In a recent award published on the Pubs Code Adjudicator website, PAS represented an EI Group tenant whose previous rent assessment was riddled with faults and non-compliant. With our expert help, they got a new offer which re-triggered their MRO – see points 152 and 163 of the award. Download a copy here Quarter_3_2019_9_Statutory_Arbitration_Award_1_CLATWORTHY
Aside from finding faults in tied rent offers you may be able to use the downturn in trade to “force” trigger MRO too, see our service here
If you would like us to force an MRO trigger for your pub contact us here
A recent article by an award-winning journalist outlines the opportunity to force an MRO, as we said in the article there has never been a more “fertile” chance to break the tie, this moment is more about the long-term survival for many in the U.K. pub industry.
Read the full article from Jonny Garrett in Good Beer Hunting here
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