RESTAURANT LEASE AGREEMENT

THIS RESTAURANT LEASE AGREEMENT ("Agreement" or "Lease") is made and entered into as of this [____] day of [__________], 20[____], by and between:

LANDLORD:
Name: [________________________________]
Entity Type: ☐ Individual ☐ Corporation ☐ LLC ☐ Partnership ☐ Trust
Address: [________________________________]
City: [________________] State: [____] ZIP: [________]
Phone: [________________________________]
Email: [________________________________]

TENANT:
Name: [________________________________]
DBA (if applicable): [________________________________]
Entity Type: ☐ Individual ☐ Corporation ☐ LLC ☐ Partnership
Address: [________________________________]
City: [________________] State: [____] ZIP: [________]
Phone: [________________________________]
Email: [________________________________]

ARTICLE 1: PREMISES

1.1 Leased Premises

Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the following described premises ("Premises"):

Property Address: [________________________________]
Suite/Unit Number: [________________________________]
City: [________________] State: [____] ZIP: [________]

Square Footage:
- Interior Space: [________] square feet
- Kitchen Area: [________] square feet
- Dining Area: [________] square feet
- Storage/Back of House: [________] square feet
- Outdoor Patio/Seating (if applicable): [________] square feet

1.2 Permitted Use

The Premises shall be used and occupied only for the operation of:

Restaurant Concept: [________________________________]
Cuisine Type: [________________________________]

☐ Full-Service Restaurant
☐ Quick-Service/Fast Casual Restaurant
☐ Café/Coffee Shop
☐ Bakery with Dine-In
☐ Bar/Lounge with Food Service
☐ Other: [________________________________]

Service Types Permitted:
☐ Dine-In Service
☐ Take-Out/Carry-Out
☐ Delivery Services (including third-party platforms)
☐ Catering (on-premises preparation)
☐ Outdoor Dining/Patio Service
☐ Drive-Through Service
☐ Bar/Alcohol Service
☐ Live Entertainment
☐ Private Events/Banquets

1.3 Exclusive Use Clause

☐ Landlord grants Tenant exclusive use rights within the property/shopping center for:
[________________________________]

Exclusivity Radius: [________] feet from Premises
Competing Concepts Prohibited: [________________________________]

☐ No exclusive use rights granted

ARTICLE 2: LEASE TERM

2.1 Initial Term

Commencement Date: [__/__/____]
Expiration Date: [__/__/____]
Initial Term Length: [____] years

2.2 Rent Commencement

Rent Commencement Date: [__/__/____]

☐ Rent-Free Build-Out Period: [____] days/months from Lease Commencement
☐ Reduced Rent Period: $[________] per month for [____] months

2.3 Renewal Options

Tenant shall have the option to renew this Lease for:

Number of Renewal Terms: [____]
Length of Each Renewal Term: [____] years

Renewal Notice Required: [____] days prior to expiration
Renewal Rent Terms: ☐ Fair Market Value ☐ Fixed Increase of [____]% ☐ CPI Adjustment ☐ Negotiated

ARTICLE 3: RENT AND ADDITIONAL CHARGES

3.1 Base Rent

Annual Rent Escalation: [____]% per year OR CPI adjustment with cap of [____]%

3.2 Lease Structure

This Lease is structured as:

☐ Gross Lease - Landlord pays property taxes, insurance, and maintenance
☐ Modified Gross Lease - Tenant pays: [________________________________]
☐ Triple Net Lease (NNN) - Tenant pays property taxes, insurance, and CAM
☐ Percentage Lease - Base rent plus percentage of gross sales

3.3 Percentage Rent (if applicable)

Breakpoint (Natural): $[________] annual gross sales
Percentage Rate: [____]% of gross sales above breakpoint
Reporting Frequency: ☐ Monthly ☐ Quarterly ☐ Annually

Gross Sales Definition includes:
☐ Dine-in sales
☐ Take-out/delivery sales
☐ Catering sales
☐ Gift card sales (when sold/when redeemed)
☐ Third-party delivery platform sales (gross/net of fees)
☐ Merchandise sales
☐ Private event revenue

Exclusions from Gross Sales:
☐ Sales tax collected
☐ Tips/gratuities
☐ Employee meals
☐ Promotional/complimentary items
☐ Returns/refunds

3.4 Additional Rent - NNN Charges

Common Area Maintenance (CAM):
Monthly CAM Estimate: $[________] ($[________] per sq. ft.)
CAM Cap: [____]% annual increase OR No cap

CAM Includes:
☐ Parking lot maintenance and lighting
☐ Landscaping and snow removal
☐ Common area utilities
☐ Security services
☐ Property management fees (capped at [____]%)
☐ Trash/dumpster service
☐ Grease trap/interceptor maintenance

Property Taxes:
Monthly Tax Estimate: $[________]
Tenant's Pro Rata Share: [____]%

Property Insurance:
Monthly Insurance Estimate: $[________]
Tenant's Pro Rata Share: [____]%

3.5 Utility Expenses

Tenant shall be responsible for:
☐ Electricity (separately metered: ☐ Yes ☐ No)
☐ Gas (separately metered: ☐ Yes ☐ No)
☐ Water/Sewer
☐ Trash removal (if not included in CAM)
☐ Grease trap pumping and maintenance
☐ HVAC maintenance and filters
☐ Internet/telephone

3.6 Security Deposit

Security Deposit Amount: $[________]
Letter of Credit Accepted: ☐ Yes ☐ No

Deposit Reduction Schedule:
☐ Deposit may be reduced to $[________] after [____] years of timely payments
☐ No reduction available

ARTICLE 4: TENANT IMPROVEMENTS AND BUILD-OUT

4.1 Condition of Premises

Landlord shall deliver Premises in the following condition:

☐ Vanilla Shell/Cold Dark Shell:
- Concrete floor
- Demising walls to structure
- Storefront with entry door
- Stubbed utilities
- No HVAC, plumbing fixtures, or interior finishes

☐ Warm Shell:
- HVAC system installed
- Electrical panel with basic service
- Restroom rough-in
- Basic ceiling grid

☐ Second Generation Restaurant Space:
- Existing kitchen infrastructure
- Grease trap/interceptor
- Hood and ansul system
- Walk-in cooler/freezer
- Existing condition "as-is"

4.2 Tenant Improvement Allowance (TIA)

TIA Amount: $[________] ($[________] per square foot)

TIA Payment Method:
☐ Reimbursement upon completion
☐ Direct payment to contractors
☐ Rent credit over [____] months
☐ Amortized into rent at [____]% interest

TIA Covers:
☐ Kitchen equipment and installation
☐ Hood/ventilation system
☐ Grease trap installation
☐ Plumbing and electrical
☐ HVAC modifications
☐ Interior finishes (flooring, walls, ceiling)
☐ Signage
☐ Architectural and permit fees

4.3 Landlord's Work

Landlord agrees to complete the following work at Landlord's expense prior to Tenant's possession:

1. [________________________________]
2. [________________________________]
3. [________________________________]
4. [________________________________]
5. [________________________________]

Landlord Work Completion Deadline: [__/__/____]

4.4 Tenant's Work

Tenant shall be responsible for all other improvements necessary to operate the restaurant, including but not limited to:

Kitchen Equipment and Systems:
☐ Commercial cooking equipment
☐ Refrigeration (reach-in and walk-in)
☐ Exhaust hood and ventilation system
☐ Fire suppression (Ansul) system
☐ Grease trap/interceptor
☐ Three-compartment sink and hand sinks
☐ Dishwashing equipment
☐ Food preparation surfaces and storage

Dining Area:
☐ Furniture, fixtures, and equipment (FF&E)
☐ Point-of-sale system
☐ Sound system and speakers
☐ Decorative elements and artwork
☐ Lighting fixtures

Required Permits and Approvals:
☐ Building permit
☐ Health department approval
☐ Fire marshal inspection
☐ Certificate of Occupancy
☐ Liquor license (if applicable)
☐ Sign permit
☐ Outdoor seating permit

4.5 Construction Requirements

• All work must comply with applicable building codes and ADA requirements
• Tenant shall submit plans to Landlord for approval within [____] days
• Landlord approval shall not be unreasonably withheld or delayed
• Tenant must use licensed and insured contractors
• All work must be completed by: [__/__/____]

ARTICLE 5: RESTAURANT-SPECIFIC PROVISIONS

5.1 Hours of Operation

Permitted Hours: [________] a.m. to [________] a.m./p.m.
Minimum Operating Hours Required: ☐ Yes ☐ No

If yes, minimum hours: [________________________________]

5.2 Odor and Exhaust Control

Tenant shall:
- Install and maintain exhaust/ventilation systems meeting all codes
- Route exhaust to [________________________________]
- Install odor control/filtration as required
- Maintain grease traps per manufacturer and code requirements
- Prevent cooking odors from affecting common areas or other tenants

5.3 Grease Trap/Interceptor

Existing Grease Trap: ☐ Yes ☐ No
Size: [________] gallons
Location: ☐ Interior ☐ Exterior

Maintenance Responsibility: ☐ Tenant ☐ Landlord
Pumping Frequency Required: Every [____] days/weeks/months

5.4 Trash and Waste Removal

Dumpster Location: [________________________________]
Dumpster Size Allocated: [________] cubic yards
Pickup Frequency: [____] times per week

Tenant Responsibilities:
☐ Proper bagging and disposal of all waste
☐ Breaking down cardboard boxes
☐ Keeping dumpster area clean
☐ Proper disposal of cooking oil (recycling required: ☐ Yes ☐ No)
☐ Compliance with recycling requirements

5.5 Pest Control

Responsibility: ☐ Tenant ☐ Landlord ☐ Shared
Frequency: ☐ Weekly ☐ Bi-weekly ☐ Monthly

5.6 Deliveries and Loading

Delivery Hours Permitted: [________] a.m. to [________] p.m.
Loading Dock/Area: ☐ Shared ☐ Exclusive ☐ Street access only
Delivery Restrictions: [________________________________]

5.7 Outdoor Seating (if applicable)

Outdoor Area: [________] square feet
Seating Capacity: [____] seats
Seasonal Use Only: ☐ Yes ([__________] to [__________]) ☐ No (Year-round)

Outdoor Area Rent: ☐ Included in base rent ☐ Additional $[________] per month
Furniture Storage: [________________________________]
Hours of Use: [________] a.m. to [________] p.m.
Alcohol Service Permitted Outdoors: ☐ Yes ☐ No

ARTICLE 6: LIQUOR LICENSE PROVISIONS

6.1 Liquor License Status

☐ Tenant intends to obtain liquor license
☐ Existing license to be transferred (see separate Liquor License Transfer Agreement)
☐ No alcohol service planned

6.2 Contingency

☐ This Lease is contingent upon Tenant obtaining a [________________________________] liquor license
Contingency Deadline: [__/__/____]

If license is not obtained by deadline:
☐ Tenant may terminate with return of deposit
☐ Lease converts to non-alcohol use
☐ Other: [________________________________]

6.3 License Requirements

Landlord represents that, to Landlord's knowledge:
☐ The Premises are not within [____] feet of a school
☐ The Premises are not within [____] feet of a church/place of worship
☐ There are no known impediments to liquor license approval
☐ Previous tenant held liquor license: ☐ Yes ☐ No

6.4 Landlord Cooperation

Landlord agrees to provide reasonable cooperation in Tenant's license application, including:
☐ Signing landlord consent forms
☐ Providing proof of ownership/authorization
☐ Attending hearings if required
☐ Other: [________________________________]

ARTICLE 7: INSURANCE REQUIREMENTS

7.1 Tenant's Insurance

Tenant shall maintain the following insurance coverage:

Commercial General Liability:
- Each Occurrence: $[________] minimum ($1,000,000 recommended)
- General Aggregate: $[________] minimum ($2,000,000 recommended)
- Products/Completed Operations: $[________]
- Liquor Liability (if applicable): $[________]

Property Insurance:
- Tenant's personal property, fixtures, and improvements
- Coverage Amount: $[________] (replacement cost)

Business Interruption Insurance:
- Coverage for [____] months of operating expenses

Workers' Compensation:
- As required by state law
- Employer's Liability: $[________]

Umbrella/Excess Liability:
- Coverage Amount: $[________]

7.2 Additional Insured

Tenant shall name the following as additional insureds on all liability policies:
- Landlord: [________________________________]
- Property Manager: [________________________________]
- Lender: [________________________________]

7.3 Waiver of Subrogation

Both parties waive rights of subrogation against each other for losses covered by their respective property insurance policies.

ARTICLE 8: MAINTENANCE AND REPAIRS

8.1 Landlord's Responsibilities

Landlord shall maintain and repair:
☐ Structural elements (roof, foundation, exterior walls)
☐ Common areas
☐ Parking lot and sidewalks
☐ Building systems (unless separately metered/serving only Tenant)
☐ Exterior of building
☐ [________________________________]

8.2 Tenant's Responsibilities

Tenant shall maintain and repair:
☐ Interior of Premises (walls, floors, ceilings)
☐ All kitchen equipment and systems
☐ HVAC system serving Premises (filter changes, routine maintenance)
☐ Plumbing fixtures and drains
☐ Electrical fixtures and equipment
☐ Grease trap cleaning and maintenance
☐ Hood and exhaust system cleaning
☐ Fire suppression system inspection and maintenance
☐ Pest control within Premises
☐ Storefront glass and entry doors
☐ [________________________________]

8.3 HVAC Maintenance Contract

Tenant shall maintain a service contract for HVAC with a licensed contractor, including:
- Quarterly inspections and filter changes
- Annual maintenance and cleaning
- Copy of contract provided to Landlord

ARTICLE 9: SIGNAGE

9.1 Permitted Signage

Building/Storefront Sign: ☐ Yes ☐ No
Monument Sign: ☐ Yes ☐ No
Pylon Sign: ☐ Yes ☐ No
Window Graphics: ☐ Yes ☐ No (Maximum coverage: [____]%)
A-Frame/Sandwich Board: ☐ Yes ☐ No

9.2 Sign Specifications

All signage must comply with:
- Local sign ordinances and permit requirements
- Shopping center sign criteria (if applicable)
- Landlord's prior written approval (not unreasonably withheld)

Sign Allowance: $[________] (if any)

ARTICLE 10: ASSIGNMENT AND SUBLETTING

10.1 Consent Required

Tenant shall not assign this Lease or sublet all or any portion of the Premises without Landlord's prior written consent, which shall not be unreasonably withheld.

10.2 Conditions for Approval

Landlord may condition approval on:
- Assignee's financial qualifications
- Assignee's restaurant experience
- Assumption of all Lease obligations
- Landlord's reasonable approval of proposed concept
- Payment of Landlord's review costs (not to exceed $[________])

10.3 Recapture Right

☐ Landlord has right to recapture Premises upon notice of proposed assignment
☐ No recapture right

10.4 Profit Sharing

In the event of approved assignment, Landlord shall be entitled to [____]% of any assignment consideration received by Tenant in excess of Tenant's investment in the Premises.

ARTICLE 11: DEFAULT AND REMEDIES

11.1 Events of Default by Tenant

The following shall constitute events of default:
- Failure to pay rent within [____] days of due date
- Failure to maintain required insurance
- Abandonment of Premises
- Loss of required licenses (health permit, liquor license, business license)
- Violation of health codes resulting in closure
- Unauthorized assignment or subletting
- Failure to cure other breaches within [____] days of written notice

11.2 Landlord's Remedies

Upon default, Landlord may:
- Terminate Lease and recover possession
- Accelerate rent for remaining term
- Re-enter and re-let Premises
- Recover damages including lost rent, re-letting costs, and attorneys' fees
- Exercise any other remedies available at law or equity

11.3 Tenant's Remedies for Landlord Default

If Landlord fails to perform obligations:
- Tenant shall provide written notice
- Landlord shall have [____] days to cure (or commence cure if unable to complete within such period)
- Tenant may pursue legal remedies if Landlord fails to cure

ARTICLE 12: END OF TERM

12.1 Surrender of Premises

Upon termination, Tenant shall:
- Remove all personal property and trade fixtures
- Leave Premises in broom-clean condition
- Repair any damage caused by removal of fixtures
- Return all keys and access devices

12.2 Removal of Improvements

☐ Tenant must remove all improvements and restore to original condition
☐ Improvements become Landlord's property
☐ Landlord may designate specific items for removal

12.3 Holdover

If Tenant remains after expiration without Landlord's consent:
- Tenancy becomes month-to-month
- Rent increases to [____]% of last monthly rent
- All other terms remain in effect

ARTICLE 13: MISCELLANEOUS PROVISIONS

13.1 Quiet Enjoyment

Landlord covenants that Tenant, upon paying rent and performing all obligations, shall peacefully and quietly enjoy the Premises.

13.2 Subordination and Attornment

This Lease is subordinate to any mortgage or deed of trust now or hereafter affecting the property, provided lender agrees to recognize this Lease upon foreclosure.

13.3 Estoppel Certificates

Each party agrees to provide estoppel certificates within [____] days of request.

13.4 Force Majeure

Neither party shall be liable for delays caused by circumstances beyond reasonable control, including natural disasters, government actions, or pandemics.

13.5 Notices

All notices shall be in writing and delivered by:
☐ Certified mail, return receipt requested
☐ Overnight courier
☐ Personal delivery
☐ Email with confirmation (for routine matters only)

To Landlord: [________________________________]
To Tenant: [________________________________]

13.6 Governing Law

This Lease shall be governed by the laws of the State of [________________].

13.7 Entire Agreement

This Lease, including all exhibits and addenda, constitutes the entire agreement between the parties.

13.8 Amendments

This Lease may only be amended by written agreement signed by both parties.

13.9 Attorneys' Fees

The prevailing party in any legal proceeding shall be entitled to recover reasonable attorneys' fees.

ARTICLE 14: EXHIBITS AND ADDENDA

The following exhibits are attached and incorporated:

☐ Exhibit A - Floor Plan/Site Plan
☐ Exhibit B - Landlord's Work Letter
☐ Exhibit C - Tenant's Work Requirements
☐ Exhibit D - Sign Criteria
☐ Exhibit E - Rules and Regulations
☐ Exhibit F - Shopping Center Declaration (if applicable)
☐ Exhibit G - Personal Guaranty
☐ Exhibit H - Commencement Date Memorandum
☐ Addendum: [________________________________]

SIGNATURES

IN WITNESS WHEREOF, the parties have executed this Restaurant Lease Agreement as of the date first written above.

LANDLORD:

Signature: ________________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

TENANT:

Signature: ________________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

PERSONAL GUARANTY (if required)

The undersigned personally and unconditionally guarantees the full and faithful performance of all Tenant's obligations under this Lease.

Guarantor 1:
Signature: ________________________________
Printed Name: [________________________________]
Address: [________________________________]
Date: [__/__/____]

Guarantor 2:
Signature: ________________________________
Printed Name: [________________________________]
Address: [________________________________]
Date: [__/__/____]

NOTARY ACKNOWLEDGMENT

State of [________________]
County of [________________]

On this [____] day of [__________], 20[____], before me personally appeared [________________________________], known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

Notary Signature: ________________________________
Notary Name (Printed): [________________________________]
My Commission Expires: [__/__/____]

[NOTARY SEAL]

This template is provided for informational purposes only. Restaurant lease agreements involve significant financial commitments and complex legal provisions. Both landlords and tenants should consult with qualified commercial real estate attorneys and accountants before execution.