The government has released the first of a two-part consultation on a new Pubs Code, which sets out how the ‘market rent only' option would work.
The Department for Business Innovation and Skills (BIS) said it implemented the principle that a tenant tied to a business owning 500 or more tied pubs should be no worse off than a free-of-tie tenant.
BIS said it expected up to 13,000 tied tenants in England and Wales to be protected by the Code.
The second stage of the consultation, to be published soon, will cover the remaining elements of the Code.
Business Minister Anna Soubry said: "Pubs are the lifeblood of so many of our towns, villages and high streets, playing a vital role supporting our local economies. It's not right that some tied pub tenants are unfairly overcharged by their landlords and the Pubs Code will help ensure they get a fair deal.
"I'm looking forward to hearing from pub companies and tenants on these important proposals to put the industry on the strongest possible footing."
BIS hopes to hear from pub-owning businesses, tied tenants and their representatives on the proposals.
The Small Business, Enterprise and Employment Act requires the Pubs Code to be in place before the end of May 2016.
Meanwhile, the Pubs Code Adjudicator, who will enforce the Code, is currently being recruited.
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