A new code to govern the relationship between pub companies and their licensees has been published by three leading industry associations.
The Pub Industry Framework Code of Practice is designed to govern the business relationship between companies and publicans operating tied public houses and results from an agreement reached last October, between the British Beer & Pub Association (BBPA), British Institute of Innkeeping (BII) and the Federation of Licensed Victuallers Associations (FLVA).
It is hoped the code will improve the openness and transparency of tied agreements between pub operators and lessees, and increase the information made available by pub companies to prospective lessees and tenants.
In addition to the code the pub industry has set up a “cost-effective” rent review scheme (PIRRS) to which tenants/lessees can appeal in circumstances where there is an unresolved dispute in a rent review.
BBPA chief executive Brigid Simmonds said she is “delighted” to have reached agreement on the detailed content of a “much improved” code.
“We look forward to seeing the revision of company codes in the coming months, to reflect the challenging and robust set of reforms we have all agreed. With these reforms well underway, this will help the industry to work together to tackle other challenges, and ensure that pubs prosper as a vital part of our way of life and at the centre of Britain’s modern hospitality industry.”
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By GlobalDataCampaign group Fair Pint, however, went public with criticism of the new code in November, publishing an industry agreement designed to lay down new rules on the tie.
It did so without the consent of signature parties, criticising the agreement alongside its main clauses, with the intention of ramping up pressure on the industry to make more reforms to the tie, which it believed would continue to be “unacceptable” even with the new agreement.
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