Alabama restaurant lease agreement template

Alabama Restaurant Lease Agreement

This Alabama Restaurant Lease Agreement (the "Lease") is made and entered into as of [Date] by and between [Landlord Name], residing at [Landlord Address] ("Landlord"), and [Tenant Name], residing at [Tenant Address] ("Tenant").

Premises:

Option A: Landlord leases to Tenant, and Tenant leases from Landlord, the premises located at [Street Address], [City, State, Zip Code], legally described as [Legal Property Description] (the "Premises").

Option B: The Premises consists of approximately [Square Footage] square feet, including a dining area, kitchen, bar area, storage space, and restrooms as depicted on Exhibit A attached hereto. It includes [Number] parking spaces.

Use of Premises:

Option A: The Premises shall be used solely for the purpose of operating a restaurant, including dine-in, takeout, delivery, and catering services.

Option B: Tenant may serve alcoholic beverages on the premises, provided all required licenses and permits are obtained and maintained according to Alabama law and regulations of the Alabama ABC Board.

Change of Use: Tenant shall not change the use of the Premises or sublease any portion thereof without Landlord’s prior written consent.

Compliance: Tenant shall comply with all applicable Alabama state, county, and municipal laws, including food service permits, business licenses, health department certifications, state building codes, ADA accessibility, and fire and safety codes.

Grease Trap: Tenant shall install and maintain a grease trap in accordance with local Alabama regulations.

Lease Term:

Option A: The term of this Lease shall commence on [Start Date] and expire on [End Date], unless sooner terminated as provided herein.

Option B: Renewal Option: Tenant shall have the option to renew this Lease for [Number] additional [Years] term(s), provided Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the expiration date of the then-current term.

Rent Abatement: Tenant shall be granted a rent abatement period of [Number] months commencing on [Start Date] for initial buildout and fixturization.

Rent:

Option A: Base Rent: Tenant shall pay Landlord a base rent of [Dollar Amount] per month, payable in advance on the first day of each month.

Option B: Percentage Rent: In addition to the base rent, Tenant shall pay Landlord [Percentage]% of its gross sales exceeding [Dollar Amount] per [Month/Quarter/Year]. Gross sales shall be defined as all revenue generated from the Premises, less sales tax.

Additional Charges: Tenant shall be responsible for the following additional charges:

CAM (Common Area Maintenance): [Dollar Amount/Percentage] per month.

Utilities: Tenant shall be directly responsible for all utilities, including water, gas, and electricity, separately metered.

Waste Disposal: Tenant shall be responsible for all waste disposal costs.

Escalation Clause: The base rent shall increase by [Percentage]% annually on the anniversary of the commencement date.

Late Fees: A late fee of [Dollar Amount] shall be charged for any rent payment received more than [Number] days after the due date.

Security Deposit:

Tenant shall deposit with Landlord a security deposit of [Dollar Amount], which shall be held by Landlord as security for the performance of Tenant’s obligations under this Lease. The security deposit will be returned to Tenant within the timeframe and conditions as specified under Alabama law after the lease ends, less any deductions for damages or unpaid rent.

Repairs and Maintenance:

Landlord Responsibilities: Landlord shall be responsible for maintaining the roof, structure, and exterior of the Premises.

Tenant Responsibilities: Tenant shall be responsible for maintaining the interior of the Premises, including all kitchen equipment, plumbing fixtures, and electrical systems.

HVAC Maintenance: Responsibility for HVAC maintenance is as follows: [Landlord/Tenant].

Grease Trap: Tenant shall be solely responsible for the maintenance and cleaning of the grease trap.

Exhaust Hoods: Tenant is responsible for regular maintenance of exhaust hoods in compliance with Alabama fire codes.

Tenant Improvements:

All tenant improvements, construction, or remodeling must be approved in writing by Landlord prior to commencement. Tenant shall obtain all necessary permits and ensure compliance with Alabama building codes.

Restoration: Upon termination of this Lease, Tenant shall [Restore/Not Restore] the Premises to its original condition, unless otherwise agreed in writing by Landlord.

Insurance:

Tenant shall maintain the following insurance coverage:

Commercial General Liability: [Dollar Amount] per occurrence, with Landlord named as an additional insured.

Property Insurance: Covering the Premises and Tenant's personal property.

Workers’ Compensation: As required by Alabama law.

Liquor Liability: If applicable, [Dollar Amount] per occurrence.

Proof of Insurance: Tenant shall provide Landlord with proof of insurance coverage upon execution of this Lease and annually thereafter.

Regulatory Compliance:

Tenant shall be responsible for maintaining all required licenses and permits, including food service permits, business licenses, and health department certifications.

Tenant shall promptly notify Landlord of any violations or citations received.

Casualty Loss:

In the event of a casualty loss, such as fire or natural disaster, the Lease shall terminate if the Premises are rendered unusable and cannot be restored within [Number] days.

Assignment and Sublease:

Tenant shall not assign this Lease or sublease the Premises without Landlord’s prior written consent, which consent shall not be unreasonably withheld. Landlord maintains the right of first refusal.

Move-In and Move-Out:

Upon termination of this Lease, Tenant shall remove all of its personal property and equipment and leave the Premises in a clean and orderly condition. Tenant is responsible for cleaning the grease trap at their expense. The security deposit, less any deductions, shall be returned within 60 days.

Signage:

Tenant shall have the right to install signage on the exterior of the Premises, subject to Landlord’s approval and compliance with local sign ordinances.

Outdoor Dining:

[Option A: Tenant shall have the exclusive right to use the outdoor dining area depicted on Exhibit B attached hereto. / Option B: Tenant shall have the non-exclusive right to use the outdoor dining area subject to Landlord’s rules and regulations.]

Utilities and Waste Management:

Tenant is responsible for compliance with all local Alabama sanitary and environmental regulations related to wastewater and grease management.

Dispute Resolution:

Any disputes arising under this Lease shall be resolved through [Negotiation/Mediation/Arbitration] in [Alabama County] County, Alabama. This Lease shall be governed by the laws of the State of Alabama.

Default and Remedies:

In the event of a default by Tenant, Landlord shall have the right to terminate this Lease and pursue all available remedies under Alabama law, including eviction and recovery of damages.

Go Dark Provisions:

Tenant shall continuously operate the restaurant during normal business hours. Failure to do so may result in penalties as determined by the Landlord.

Operating Hours:

Tenant's operating hours must comply with all applicable local ordinances.

Taxes and Fees:

Tenant shall be responsible for paying all applicable Alabama-specific taxes or fees, such as food and beverage taxes.

Discrimination:

Tenant affirms that it will not discriminate in public accommodations in violation of the ADA and the Alabama Human Rights Act.

Site-Specific Adjustments:

All elements of this Lease are subject to site-specific adjustment based on the restaurant business needs, property layout, Alabama commercial leasing norms, and are subject to amendments for health, fire, tax, zoning, or business licensing regulation changes.

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

Landlord:

[Landlord Name]

[Landlord Signature]

Tenant:

[Tenant Name]

[Tenant Signature]