Regulation 31 Reasonable terms and conditions

(1)

Paragraph (2) applies where—

(a)

a tied pub tenant is subject to a tenancy granted by the pub-owning business; and

(b)

the tenant gives an MRO notice.

(2)

The terms and conditions of the proposed MRO-compliant tenancy sent under regulation 29(3)(b) or 33(2) are to be regarded as unreasonable for the purposes of section 43(4) of SBEEA 2015 (tenancy or licence which is MRO-compliant) if they—

(a)

insert into the tenancy a break clause which is exercisable only by the pub-owning business;

(b)

impose a service tie in respect of insurance other than buildings insurance in connection with the premises to which the tenancy relates; or

(c)

are terms which are not common terms in agreements between landlords and pub tenants who are not subject to product or service ties.

(3)

Where—

(a)

a tied pub tenant is subject to a licence granted by the pub-owning business; and

(b)

an MRO notice is given,

the terms and conditions of the proposed MRO-compliant licence granted by the pub-owning business under regulation 29(3)(c) or 33(2) are to be regarded as unreasonable for the purposes of section 43(4) of SBEEA 2015 if they impose a service tie in respect of insurance other than buildings insurance in connection with the premises to which the licence relates.