Code of Practice

The Pubs Code Regulations 2016 (the Pubs Code)

With effect from 21st July 2016, Admiral Taverns are regulated by the Pubs Code, which was introduced following the passing of the Small Business, Enterprise and Employment Act 2015.

The Pubs Code places statutory obligations on us as a pub company and helps ensure that you can have confidence in your dealings with Admiral. The Pubs Code is binding on both Admiral and its tied licensees in England and Wales and may be used in pursuance of a claim of non-compliance. The protection of the Pubs Code will also be available to any leaseholder who acquires a lease through an assignment.

For further transparency our Compliance Officer will prepare an Annual Compliance Report which will provide a detailed and accurate account of Admiral’s compliance with the Pubs Code. The Compliance Report will highlight any identified breaches and explain what we have done to remedy the breach. A copy of our Compliance Report will be published on the Admiral website.

Click here to obtain the Pubs Code 2016.

A Pubs Code Adjudicator (PCA) has been appointed to oversee compliance with the regulations set out in the Pubs Code. The PCA can be contacted by calling 0800 528 8080, by visiting their website and completing the online enquiry form, or by writing to:

Pubs Code Adjudicator (enquiries)
Lower Ground
Victoria Square House
Victoria Square
Birmingham
B2 4AJ

To visit the Pubs Code Adjudicator’s website, click here

 

The Admiral Code of Practice

The Admiral Code of Practice (Version 5) is a key element of our information provision to our tied licensees under the Pubs Code. It gives details of the essential elements of the relationship between Admiral and its tied licensees and is underpinned by the overriding principle of ‘Fair and Lawful dealing’ and that tied licensees should be no worse off than free of tie licensees. In addition we have incorporated further provisions within our Code of Practice which are supplementary to the provisions of the Pubs Code. These additional provisions outline further standards of good service and best practice which we aim to achieve in working with all of our tied licensees but are not statutory requirements and can be amended from time to time.

The Admiral Code of Practice is based upon the Pubs Code and our own internal processes which we consider to be best practice. It has been issued for the information of existing and prospective tenants and confirms the best practice of Admiral.

Click here to download a copy of the Admiral Code of Practice (Version 5)

Copies of the benchmarking reports referred to in the Admiral Code of Practice are available from the following websites:

Click here to obtain the BBPA ‘Running a Pub: A Cost guide for lessees/tenants’ report

Click here to obtain the RICS Pub Benchmarking Survey

Click here to obtain the ALMR Benchmarking Report

 

Your agreement

Our Code of Practice covers the types of substantive agreement that we offer. Our standard substantive agreement is a fixed three or five year term and is usually excluded from the security of tenure provisions of the Landlord and Tenant Act 1954, which means there is no automatic right to renew your agreement when it expires. Your legal adviser will be able to advise you on this during the letting process. There is no cooling off period within our substantive agreements. Repairing obligations and commitment increase depending on the length of the agreement you enter. The following is a summary of the agreement types currently offered by Admiral:

 

  • 1. ADMIRAL TENANCY AGREEMENTS

    For new licensees, this is a fixed three or five year tenancy agreement. It may not be assigned and is excluded from the security of tenure provisions of the LTA 1954, which means there is no automatic right to renewal.

    The rent may be increased or decreased annually on each anniversary date based on indexation, which we measure using the Retail Price Index. There is no open market rent review within the Admiral Tenancy agreements. Given the shorter term of the Admiral Tenancy agreements (both three and five year) your repairing obligations are less onerous than the Admiral Lease and you are not responsible for structural defects although you are responsible for internal repair and decoration. A summary of your repairing obligations are set out in more detail in Appendix D of the Admiral Code of Practice.

    For new tenancy agreements, a Schedule of Condition will be provided to highlight the condition of the property in advance of you preparing your business plan.

    The Admiral Tenancy agreement is also available with a break option for both parties (normally three or six months) and your Business Development Manager will be able to discuss this with you. Again, such agreements will be excluded from the security of tenure provisions of the LTA 1954 and although there is no automatic right to renewal, we will write to you at least six months before the expiry of your agreement to advise that the agreement will expire and that your Business Development Manager will be in contact to discuss the available options.

  • 2. ADMIRAL BUSINESS SUPPORT AGREEMENT (BSA)

    The BSA is a short term agreement (8 months) excluded from the security of tenure provisions of the LTA 1954, and is designed as an introduction and forerunner into a more substantive agreement.

    During the course of the BSA your Business Development Manager and the Admiral team will work with you to discuss how to take the business and relationship with Admiral forward via methods of support as follows:

    • Guidance on business planning and profit and loss management
    • Business accountancy and stock taking services
    • A bespoke training package
    • BII membership
    • Commercial support

    Subject to compliance with the terms of your agreement, Admiral will pay for half of the accountancy and stock taking services for the duration of the BSA to give your business the best opportunity of being successful.

    This agreement is fully tied, non-assignable and is for a fixed term only and may be ended by either party by giving 28 days written notice.

    Due to the short term nature of the BSA you are not responsible for structural defects but you are required to keep the interior of the property in good repair and condition.

  • 3. ADMIRAL TENANCY AT WILL (TAW)

    The Admiral Tenancy at Will (TAW) is a short term agreement.

    The TAW does not have a fixed term, is non-assignable and may be ended by either party at any time without notice.

    Due to the short term nature of the TAW you are not responsible for structural defects but you are required to keep the interior of the property in good repair and condition.

    The TAW is automatically excluded from the security of tenure provisions of the LTA 1954.

  • 4. ADMIRAL LEASE

    The Admiral Lease is designed to encourage greater lessee investment by offering more security and flexibility, therefore allowing our lessees to develop their businesses over a longer period of time and to create capital value. Lessees are able to set the term to suit their business plans in blocks of five years from 10 to 30 years. The Admiral Lease is not usually excluded from the security of tenure provisions of Part 2 of the Landlord and Tenant Act 1954 (the LTA 1954).

    Rents may increase or decrease annually on the anniversary date in line with inflation, which we measure by reference to the Retail Price Index. In addition, rents are also separately reviewed every fifth year of the term to an open market rental. The standard Admiral Lease does not have an upward-only rent review clause within it. However, some of the agreements that were entered into before Admiral bought your pub do contain such clauses, but on future rent reviews (referred to as Rent Assessments in the Pubs Code) we ignore their effect. (Please see the Rent Assessment section of the Admiral Code of Practice for more details). This means that rent levels are reviewed up and down depending on the realistic needs and potential of the business.

    Under the terms of the standard Admiral Lease you are required to put and keep the whole of the property in good repair and condition. It is therefore important that you are fully aware of the condition of the property at outset. To assist with this, for all new leases we will provide you with a current Schedule of Condition which highlights the condition of the property at that time. Please note, a Schedule of Condition is not a formal survey but an assessment of the condition of the property and we strongly recommend you obtain a full survey from a qualified professional with industry experience before entering into any lease.

    Once your business is established, you may wish to sell your business and your lease to another party. Our standard lease allows for such a sale after two years although, depending on the circumstances, we may be flexible. On receipt of your written request to assign your lease, we will as soon as reasonably practicable provide you with details of our lease assignment process and information relating to the relevant fees and associated costs. (Please see Appendix B of the Admiral Code of Practice for more details).

Scottish Beer and Pub Association (SPBA) Voluntary Code of Practice

 

With effect from 21st July 2016, Admiral Taverns adheres to the provisions of the SBPA Voluntary Code of Practice in relation to its tied pubs on substantive agreements in Scotland.

The SBPA Voluntary Code of Practice places obligations on Admiral and sets out the way we should interact with our tied licensees. It is binding on both Admiral and our tied licensees in Scotland.

To download a copy of the SBPA Voluntary Code of Practice, please click here

 

The Admiral Code of Practice (Scotland)

Much like the Code of Practice for England and Wales, our Scottish Code of Practice is a fundamental aspect of our information provision to our tied licensees in Scotland and meets the criteria set out in the SBPA Voluntary Code of Practice. As well as meeting the requirements of the SBPA Voluntary Code of Practice, our Scottish Code of Practice sets out essential elements of best practice so that we act with integrity and honesty at all times. These additional elements of best practice ensure that our tied licensees in Scotland can rely on us to conduct business in a professional, fair and legal manner and has been issued for the information of existing and prospective licensees.

Click here to download a copy of the Admiral Code of Practice (Scotland)

Click here to visit the website for PICA-Service

Click here to visit the website for PIRRS