A tenancy at will or short agreement is often used by pub
companies to enable a tenant to begin operating a pub while a
longer-term agreement is finalised. Such an agreement can provide
an opportunity for both parties to understand whether the
business relationship will work, and it can be a good
introduction to the trade for a new operator.
If the business relationship is going to develop well, it is
vital that the operator on a short agreement gets off to the
right start. These transparent minimum standards for dealing
fairly with tenants on short agreements can support them in their
businesses.
Most rights in the Pubs Code do not apply to tenants on short
agreements. However, those entering into such an agreement do
have the right to certain information from their pub company and
must be advised to complete pubs entry training unless they have
certain business experience. A short agreement under the Pubs
Code is a tied agreement which is either a tenancy at will or a
tied tenancy which (when considered together with any other
agreements) entitles the tenant to occupy the pub for under 12
months.
Using the relevant Pubs Code rights of tenants on substantive
agreements as a guide, the pub companies regulated under the Pubs
Code have worked together with the PCA to agree minimum
standards. While largely reflecting existing business practices,
these standards provide clarity to those entering into a short
agreement on what they can expect from their pub company in
addition to what the Pubs Code requires.
Fiona Dickie said:
“Everyone wants tied tenants to do well, and getting off to a
strong start is essential. Those on tenancies at will and other
short agreements are entitled to be treated fairly. It is
particularly important that they should be advised not to invest
their own money in the pub when on agreements which can be
terminated at short notice. I'm pleased that the regulated pub
companies have agreed to a consistent set of minimum standards to
reflect their business practices over and above what the Pubs
Code requires them to do. This should help tied tenants to
understand what they can expect from their relationship with
them”.
The short agreements minimum standards document can be found
here: Short agreements - minimum
standards (March 2025) - GOV.UK
