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Market Rent Only (MRO) Rights

Market Rent Only (MRO) Rights – What Tied Pub Tenants Need to Know

This article explains your rights as a Tied Pub Tenant (TPT) under the Pubs Code in relation to the Market Rent Only (MRO) option. It summarises the MRO process, when you can request it, what the pub-owning business (POB) must do, and how disputes are handled.

Terms and Abbreviations

TermMeaning
CodePubs Code etc. Regulations 2016
PCAPubs Code Adjudicator
POBPub-owning Business
TPTTied Pub Tenant

This factsheet helps tenants understand their MRO rights. It is not a substitute for the legal Pubs Code framework. More guidance: www.pubscodeadjudicator.org.uk

At a Glance: What Are MRO Rights?

  • The Pubs Code gives tied tenants certain rights to request the Market Rent Only (MRO) option.
  • MRO allows you to occupy the pub under a free-of-tie agreement that meets MRO-compliant requirements.
  • You will then pay either:
    • an agreed rent, or
    • market rent (determined if no agreement is reached).
  • MRO terms must be reasonable and not uncommon in the free‑of‑tie market.

What Is the MRO Option?

The MRO option is your right to:

  • Choose to occupy the pub under an MRO‑compliant tenancy.
  • Pay either an agreed rent or market rent.

This is also known as going “free of tie”.

When Can I Ask for the MRO Option?

The Code provides four MRO events (gateways) that give you the right to submit an MRO notice:

1. You Receive a Rent Assessment Proposal (RAP)

A RAP proposes your new tied rent. The MRO event occurs when you receive the RAP.

2. Renewal of Your Pub Arrangement

This includes:

  • Your tied tenancy, and
  • Any other agreement requiring purchase of tied products/services.

 

If protected under the 1954 Act, the MRO event is triggered by receiving (or sending) a Section 25 or 26 notice.

3. Significant Increase in Price of a Tied Product or Service

The event occurs when you receive the invoice showing the significant increase.

4. Trigger Event Affecting Trade

You must send the POB a relevant analysis within 56 days showing forecasted trading impact for at least 12 months. The event occurs when you send this analysis.

MRO Procedure

The Code sets out a structured process for requesting and negotiating an MRO option.

How Do I Ask for the MRO Option?

You must send a written MRO notice to the POB. A template is available on the PCA website.

Deadline to Send an MRO Notice

You must submit the notice within 21 days starting the day after the MRO event.

What Must I Include in My MRO Notice?

  • Your name, address, email (if any) and telephone number
  • The date of the notice
  • The pub name and address
  • The date of the MRO event
  • A description explaining why it is an MRO event

What Must the POB Do in Response?

The POB must:

  • Acknowledge your notice in writing
  • Send a full response within 28 days

Full Response Requirements

The POB must either:

If the POB agrees an MRO event occurred:

  • Provide an MRO‑compliant tenancy proposal
  • Provide a proposed MRO rent

If the POB disagrees an MRO event occurred:

  • State its disagreement
  • Explain its reasons

If the POB fails to comply, you can make an arbitration referral within 14 days.

What Is an MRO‑Compliant Tenancy?

The tenancy must:

  • Contain no unreasonable terms
  • Have no product or service ties (except buildings insurance)
  • Match the remaining term length of your existing tenancy (with some renewal exceptions)

Automatically Unreasonable Terms

  • A POB‑only break clause
  • Ties on insurance other than buildings insurance
  • Terms uncommon in free‑of‑tie leases
  • For protected tenancies: exclusion of Sections 24–28 of the 1954 Act

Notes:

  • A tenancy at will is not MRO‑compliant.
  • Brewers may include reasonable stocking requirements limited to beer/cider they produce (not from specific suppliers).

 

What Happens After the Full Response?

Resolution Period

  • Lasts 3 months
  • Starts the day after you receive the full response
  • You may end it early with 7 days’ notice (minimum period 21 days)

Updated Period of Response

For 7 days after the resolution period ends, the POB may send an updated full response.

Disputes: Tenancy Terms and Rent

If You Think Terms Are Not MRO‑Compliant

You may refer the matter to arbitration within 21 days after the updated response period.

Following Arbitration

  • If the POB’s response is compliant → you have 21 days to refer the rent to an Independent Assessor (IA)
  • If not compliant → arbitrator may order a revised response

Disputes About MRO Rent

You may refer the matter to an IA within 21 days (timing depends on whether arbitration has occurred).

Your Tied Tenancy During the MRO Procedure

  • POBs cannot recover any increased tied rent during the MRO process
  • POBs cannot add or remove product/service ties
  • If the MRO process ends without agreement, restrictions no longer apply
  • If your tied tenancy ends, the MRO process ends

Questions or Support

General queries (not case-specific advice):

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