California restaurant lease agreement template

California Restaurant Lease Agreement

This California Restaurant Lease Agreement (the "Lease") is made and entered into as of [Date] by and between [Landlord Name], a [Landlord Entity Type] with its principal place of business at [Landlord Address] ("Landlord"), and [Tenant Name], a [Tenant Entity Type] with its principal place of business at [Tenant Address] ("Tenant").

1. Premises:

The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises located at [Property Address], also known as Assessor's Parcel Number [Parcel Number] (the "Premises").

Description of the Restaurant Space: [Detailed Description including square footage, specific location, seating capacity, bar/kitchen layout, storage, outdoor dining].

Option A: The Premises includes [Number] parking spaces.

Option B: The Tenant shall have non-exclusive access to the parking lot.

Option C: No parking spaces are included.

2. Permitted Use:

The Premises shall be used and occupied solely for the purpose of operating a [Restaurant Type - e.g., Restaurant, Bakery, Café, Bar], and related food and beverage services, in compliance with all applicable federal, state, and local laws, ordinances, and regulations, including, but not limited to, applicable zoning and use permits. Tenant shall maintain all necessary licenses, food handler permits, and health department approvals as required under California law, including but not limited to Business & Professions Code, Health & Safety Code, and the Alcoholic Beverage Control Act.

3. Term:

The term of this Lease shall commence on [Start Date] (the "Commencement Date") and shall continue for a period of [Number] years (the "Term"), expiring on [End Date], unless sooner terminated as provided herein.

4. Rent:

Option A: Base Rent: The Tenant shall pay to the Landlord as base rent for the Premises the sum of [Dollar Amount] per month, payable in advance on the first day of each month during the Term.

Option B: Percentage Rent: In addition to the Base Rent, the Tenant shall pay to the Landlord, as percentage rent, [Percentage]% of Tenant’s gross sales, as defined below, exceeding [Dollar Amount] in any Lease Year. Gross sales shall be reported to Landlord [Frequency - e.g., monthly, quarterly], accompanied by supporting documentation. Landlord shall have the right to audit Tenant’s sales records upon [Number] days' written notice.

Option C: CAM Charges: Tenant shall pay its proportionate share of Common Area Maintenance (CAM) charges. The proportionate share shall be [Percentage]% of the total CAM expenses. CAM expenses include [Specify Included Expenses].

5. Security Deposit:

The Tenant shall deposit with the Landlord the sum of [Dollar Amount] as a security deposit (the "Security Deposit") to secure the Tenant's faithful performance of all of the terms, covenants, and conditions of this Lease. The Security Deposit will be returned to the Tenant within [Number] days after the expiration or termination of this Lease, less any amounts necessary to cover damages to the Premises, unpaid rent, or other amounts due to the Landlord under this Lease, including costs associated with cleaning and restoration of the food preparation and customer areas.

Option A: Special Cleaning/Damage Deposit: An additional [Dollar Amount] is required as a special cleaning/damage deposit specifically for restaurant equipment and food prep areas.

6. Use and Compliance with Laws:

The Tenant shall comply with all applicable laws, ordinances, rules, and regulations of any governmental authority, including, without limitation, all health, safety, and environmental laws. Tenant is responsible for maintaining compliance with California-specific restaurant, food service, and liquor license regulations, including ventilation, grease traps, hood systems, kitchen exhaust, waste disposal, and pest control, as required by Health Code standards. Tenant shall obtain and maintain all necessary permits and licenses, including but not limited to those required by the Department of Alcoholic Beverage Control (ABC), and shall comply with all stipulations associated with such licenses.

7. Maintenance and Repairs:

Option A: Landlord Responsibility: The Landlord shall be responsible for maintaining the roof, foundation, and exterior walls of the Premises.

Option B: Tenant Responsibility: The Tenant shall be responsible for maintaining the interior of the Premises, including all fixtures, equipment, and improvements, as well as maintaining all kitchen equipment in good working order.

Option C: Shared Responsibility: The Landlord shall maintain the HVAC system, while the Tenant shall maintain walk-in coolers/freezers and commercial dishwashing equipment.

8. Insurance:

The Tenant shall maintain in full force and effect, at its own expense, the following insurance coverage: (a) commercial general liability insurance with a minimum combined single limit of [Dollar Amount] per occurrence; (b) property insurance covering the Premises and Tenant's personal property; (c) worker’s compensation insurance as required by California law; (d) Liquor Liability insurance if applicable. The Tenant shall provide the Landlord with certificates of insurance evidencing such coverage. Landlord must be named as additional insured.

9. Utilities:

The Tenant shall be responsible for the payment of all utilities serving the Premises, including, but not limited to, water, gas, electricity, and waste disposal.

10. Alterations and Improvements:

The Tenant shall not make any alterations, additions, or improvements to the Premises without the prior written consent of the Landlord, which consent shall not be unreasonably withheld. All improvements shall comply with ADA requirements and all City/County planning approval requirements. Upon the expiration or termination of this Lease, all such alterations, additions, and improvements shall become the property of the Landlord, unless otherwise agreed in writing.

11. Assignment and Subletting:

The Tenant shall not assign this Lease or sublet the Premises, in whole or in part, without the prior written consent of the Landlord, which consent shall not be unreasonably withheld. Any assignment or subletting shall be subject to all of the terms and conditions of this Lease, including compliance with California Subleasing statutes.

12. Default:

If the Tenant fails to pay rent when due, or if the Tenant fails to perform any other material obligation under this Lease, and such failure continues for a period of [Number] days after written notice from the Landlord, the Landlord may, at its option, terminate this Lease and re-enter the Premises.

13. Indemnification:

The Tenant shall indemnify, defend, and hold harmless the Landlord from and against any and all claims, losses, damages, liabilities, and expenses (including attorneys' fees) arising out of or relating to the Tenant's use of the Premises, or the Tenant's breach of this Lease.

14. Fire or Casualty:

If the Premises are damaged by fire or other casualty, this Lease shall terminate, or the Landlord may, at its option, repair the Premises, in which event the rent shall abate during the period of repair.

15. Eminent Domain:

If the Premises are taken by eminent domain, this Lease shall terminate.

16. Holding Over:

Any holding over by the Tenant after the expiration or termination of this Lease shall be deemed a month-to-month tenancy, terminable by either party upon [Number] days' written notice.

17. Renewal Option:

Option A: Tenant shall have the option to renew this Lease for one (1) additional term of [Number] years, provided Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the initial term. The rental rate for the renewal term shall be [Dollar Amount] per month.

Option B: No renewal option.

18. Environmental Compliance:

Tenant shall comply with all applicable environmental laws and regulations and shall not cause or permit any hazardous materials to be brought onto, stored, or used on the Premises, except in compliance with all applicable laws and regulations.

19. Notices:

All notices under this Lease shall be in writing and shall be deemed to have been duly given when delivered personally or mailed by certified mail, return receipt requested, to the parties at their respective addresses set forth above.

20. Governing Law:

This Lease shall be governed by and construed in accordance with the laws of the State of California. Any dispute shall be resolved in [County Name] County, California.

21. Entire Agreement:

This Lease constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

22. Amendments:

No amendment to this Lease shall be effective unless it is in writing and signed by both parties.

23. Disclosures:

The parties acknowledge receipt of the following California disclosures: Earthquake hazard disclosure, asbestos disclosure, flood hazard disclosure, ADA access disclosure, neighborhood noise disclosure, and utility cost disclosure.

Landlord acknowledges that the property has/has not been inspected by a Certified Access Specialist (CASp). [Choose one]

Signed this [Day] day of [Month], [Year].

[Landlord Name]

By: [Landlord Signature]

Title: [Landlord Title]

[Tenant Name]

By: [Tenant Signature]

Title: [Tenant Title]