Punch consults tenants on code of practice

All Punch tenants will be able to have their say on the pubco's new code of practice before it is finalised.

The 63-page code of practice has been accredited in principle by the BII's Benchmarking Accreditation Service but Punch is giving its tenants the chance to comment and provide feedback on the code to ensure it is as transparent as possible.

It has sent copies out with Business Development Managers and emailed the code to tenants.

It will be asking for any feedback in two weeks to help flush out any key themes it has not picked up on.

Punch said it would consider all relevant feedback before finalising the code, which will apply to all new and existing licensees.

The code sets out Punch's policy on assessing rent, beer flow monitoring, machine income, the tie and tenant improvements.

Punch said that beer flow monitoring data will only be used as "supporting evidence" in cases where tenants are suspected of buying out of tie.

On rent reviews, Punch said it would aim to reach an agreement after two structured meetings. It also promised to disregard any existing upward only rent clauses.

All tenants will be able to take rent review disputes to the BII-led Pub Industry Rent Review Scheme and also report any code breaches to the BII.

Serious business​

"We have produced this new Punch Partnerships Code of Practice to make clear the service and standards our partners should expect in deciding whether to take on a pub with us, and, should they proceed, doing business with us thereafter," said Punch tenanted boss Roger Whiteside.

He added: "We recognise that the decision to take on a pub is often an exciting and emotional experience but it is also a serious business undertaking involving financial risk and legal commitments.

"We want our partners to fully understand the agreement they are considering signing and exactly how the partnership between us will work.

"This code is designed to achieve this clarity but in addition, we also strongly recommend that our potential partners take independent professional advice before deciding to sign their Punch Agreement."

• Click here​ to see details on Punch's website​.