(1) The Pubs Code must require pub-owning businesses to offer their tied pub tenants falling within section 70(1)(a) a market rent only option in specified circumstances.
(2) A "market rent only option" means the option for the tied pub tenant -
(a) to occupy the tied pub under a tenancy or licence which is MRO-compliant, and
(b) to pay in respect of that occupation -
(i) such rent as may be agreed between the pub-owning business and the tied pub tenant in accordance with the MRO procedure (see section 44), or
(ii) failing such agreement, the market rent.
(3) The Pubs Code may specify -
(a) circumstances in which a market rent only option must or may be an option to occupy under a tenancy;
(b) circumstances in which a market rent only option must or may be an option to occupy under a licence.
(4) A tenancy or licence is MRO-compliant if -
(a) taken together with any other contractual agreement entered into by the tied pub tenant with the pub-owning business in connection with the ten
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