Statutory code: Marston's believes its franchise agreement should be exempt

In its response to the consultation on the code, Marston’s said its Agreement does not incorporate the provisions that the Government is seeking to regulate.

"The Marston’s Franchise Agreement has full British Franchise Association accreditation and is a true Franchise. It offers the Franchisee an opportunity to share in the profitability of the business at minimal financial risk.

“It differs from the traditional lease and tenancy agreements as there is no rent payable in respect of the premises. This eliminates the issues that Government Consultation paper is aiming to address, the assessment and level of rent payable on the premises, the level of rent on review and the effect on the level of rent of the beer tie.”

Cost estimates for adjudicator too low​

Marston’s also warned that the cost estimates for setting up a code adjudicator are too low.

“The costs will increase year on year. We suggest a cap of the budget of the adjudicator to minimise the impact on the pub sector.

“The impact of the levy would affect all parties. The industry would be burdened with additional costs in a time of economic austerity. The additional costs would lead to cost cutting measures to provide the additional monies required to cover these costs. The pub owning companies will reduce investment in properties, as the banks are extremely reluctant to lend money to pub tenants there will be less investment in pub estates, which will lead to more companies disposing of their pubs.”

Viability of breweries​

The company added: “Removal of the beer tie and/or the introduction of a guest beer will impact on the viability of breweries supplying goods through the existing distribution network to tied pubs.

“Inevitably there will be job losses and breweries will close. This will lead to less competition in the market place and the larger international brewers will have reduced competition and more of a monopoly. They will be able to demand higher prices. The consumer will have less choice and prices will rise.”