According to the PCA, expert advice can help tied tenants make informed business decisions, understand their pubs code rights and negotiate effectively about areas such as rent with their pub company.
The regulator has published a new factsheet and video, which aims to help explain how an independent professional with sector-specific experience can help tenants in a number of ways.
This includes understanding and exercising their pubs code rights, preparing sustainable business plans, understanding repair and maintenance responsibilities as well as navigate more complex situations such as assignments, renewals and market-rent-only (MRO) requests.
The sheet also highlights the circumstances when tied tenants should seek professional help.
Professional examples
Examples of this include before entering into a new agreement, rent negotiations with pub companies, before agreeing to an assignment and when agreeing to an MRO investment exception.
Furthermore, it outlines different types of business advice and the various areas that can help with that.
For example, accountants and business advisers can assist with planning, financial forecasts and viability assessments, cash flow management alongside understanding implications of taking on or continuing to operate a tied pub.
Meanwhile, solicitors can advise on tenancy and lease agreements, rights and pubs code obligations as well as contractual matters and dispute resolution.
Moreover, the PCA highlighted how chartered surveyors can help with property, repairs and maintenance advice while specialist valuers can assist with valuation advice.
Importance of being informed
While there may be an upfront cost to this advice, the PCA says, being full informed from the start can help prevent misunderstanding, reduce the likelihood of expensive disputes and save money in the long run.
It says every tenant should feel informed when making business decisions, supported by independent professional advice from the outset.
Elsewhere, the PCA launched its Tied Tenant Survey at the start of the year and has completed all interviews with tenants from the six largest regulated pub companies.
The full results will be published in June.
