# The Pubs Code etc. Regulations 2016, 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.

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Source: https://www.legislation.gov.uk/ukdsi/2016/9780111146330/regulation/31 (the official version)
Page: https://openlegislation.uk/draft-pubs-code-etc-regulations-2016-ukdsi-2016-9780111146330/regulation-31
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.