http://www.legislation.gov.uk/ukpga/2015/26/section/43Small Business, Enterprise and Employment Act 2015An Act to make provision about improved access to finance for businesses and individuals; to make provision about regulatory provisions relating to business and certain voluntary and community bodies; to make provision about the exercise of procurement functions by certain public authorities; to make provision for the creation of a Pubs Code and Adjudicator for the regulation of dealings by pub-owning businesses with their tied pub tenants; to make provision about the regulation of the provision of childcare; to make provision about information relating to the evaluation of education; to make provision about the regulation of companies; to make provision about company filing requirements; to make provision about the disqualification from appointments relating to companies; to make provision about insolvency; to make provision about the law relating to employment; and for connected purposes.texttext/xmlenStatute Law Database2026-04-21Expert Participation2026-04-07 PART 4 431The Pubs Code must require pub-owning businesses to offer their tied pub tenants falling within section 70(1)(a) a market rent only option in specified circumstances.2A “market rent only option” means the option for the tied pub tenant—ato occupy the tied pub under a tenancy or licence which is MRO-compliant, andbto pay in respect of that occupation—isuch rent as may be agreed between the pub-owning business and the tied pub tenant in accordance with the MRO procedure (see section 44), oriifailing such agreement, the market rent.3The Pubs Code may specify—acircumstances in which a market rent only option must or may be an option to occupy under a tenancy;bcircumstances in which a market rent only option must or may be an option to occupy under a licence.4A tenancy or licence is MRO-compliant if—ataken together with any other contractual agreement entered into by the tied pub tenant with the pub-owning business in connection with the tenancy or licence it—icontains such terms and conditions as may be required by virtue of subsection (5)(a),iidoes not contain any product or service tie other than one in respect of insurance in connection with the tied pub, andiiidoes not contain any unreasonable terms or conditions, andbit is not a tenancy at will.5The Pubs Code may specify descriptions of terms and conditions—awhich are required to be contained in a tenancy or licence for it to be MRO-compliant;bwhich are to be regarded as reasonable or unreasonable for the purposes of subsection (4).6Provision made under subsection (1) must include provision requiring a pub-owning business to offer a tied pub tenant a market rent only option—ain connection with the renewal of any of the pub arrangements;bin connection with a rent assessment or assessment of money payable by the tenant in lieu of rent (whether or not it results in a proposal that the rent, or amount of money payable, should increase);cin connection with a significant increase in the price at which any product or service which is subject to a product or service tie is supplied to the tied pub tenant where the increase was not reasonably foreseeable—iwhen the tenancy or licence was granted, oriiif there has been an assessment of a kind mentioned in paragraph (b), when the last assessment was concluded;dafter a trigger event has occurred.7The Pubs Code may specify what “renewal” means in relation to a tenancy or a licence for the purposes of subsection (6).8In subsection (6) “pub arrangements”, in relation to a tied pub, means—athe tenancy or licence under which the tied pub is occupied, andbany other contractual agreement which contains an obligation by virtue of which condition D in section 68 is met in relation to the premises.9In this Part a “trigger event”, in relation to a tied pub tenant, means an event which—ais beyond the control of the tied pub tenant,bwas not reasonably foreseeable as mentioned in subsection (6)(c),chas a significant impact on the level of trade that could reasonably be expected to be achieved at the tied pub, anddis of a description specified in the Pubs Code.10In this Part “market rent”, in relation to the occupation of particular premises under a tenancy or licence which is MRO-compliant, means the estimated rent which it would be reasonable to pay in respect of that occupation on the following assumptions—athat the tenancy or licence concerned is entered into—ion the date on which the determination of the estimated rent is made,iiin an arm's length transaction,iiiafter proper marketing, andivbetween parties each of whom has acted knowledgeably, prudently and willingly, andbthat condition B in section 68 continues to be met.Words in s. 43(6)(b) inserted (21.7.2016) by Enterprise Act 2016 (c. 12), ss. 39, 44(5); S.I. 2016/695, art. 4(a)