Colorado restaurant lease agreement template

Colorado Restaurant Lease Agreement

This Restaurant Lease Agreement (the “Agreement”) is made and entered into as of this [Date], by and between [Landlord's Full Legal Name], whose address is [Landlord's Address] (“Landlord”), and [Tenant's Full Legal Name], a [State of Incorporation] corporation with its principal place of business at [Tenant's Business Address] (“Tenant”). Tenant's registered agent per the Colorado Secretary of State is [Registered Agent Name], and verification is available at [Colorado Secretary of State Verification URL].

Premises

The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the following premises (the “Premises”) located at [Street Address], Unit/Suite [Unit/Suite Number], [City], Colorado [Zip Code].

The Premises consists of approximately [Total Square Footage] square feet, including [Kitchen Square Footage] square feet for the kitchen, [Dining Area Square Footage] square feet for the dining area, [Storage Square Footage] square feet for storage, [Restroom Square Footage] square feet for restrooms, [Bar Square Footage] square feet for the bar, and [Patio Square Footage] square feet for the patio/exterior dining area.

A diagram of the Premises is attached hereto as Exhibit A.

Option A: Included Fixtures and Equipment: The Premises includes the following existing fixtures and restaurant-specific equipment: [List of Fixtures and Equipment, including hood systems, grease traps, walk-in coolers/freezers, fire suppression systems, ovens, dishwashers, venting, special plumbing/gas lines, specialized HVAC].

Option B: Turnkey Restaurant: The Premises is delivered as a "turnkey" restaurant and includes the items listed in Exhibit B in the condition described. Landlord assigns to tenant remaining claims and guarantees related to the "turnkey" delivery.

Use of Premises

The Premises shall be used and occupied solely for the purpose of operating a restaurant, food preparation, and/or bar service, specifically [Types of Cuisine], [Service Style (e.g., full-service, fast-casual)].

The Tenant shall comply with all Colorado state, county, and local regulations, including but not limited to health, food safety, liquor licensing, ADA accessibility, fire safety, ventilation code, and any applicable zoning restrictions.

Option A: Prohibited Uses: The following uses are expressly prohibited: [List of Prohibited Uses, e.g., nightclub, takeout/delivery-only, food production manufacturing].

Option B: Permitted Uses: Tenant may use premises for [describe activities] as long as they are aligned with its original and primary use.

Term

The term of this Lease shall commence on [Start Date] and shall end on [End Date], unless sooner terminated as provided herein (the "Term").

Option A: Renewal Option: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration] each, provided that Tenant gives Landlord written notice of its intention to renew at least [Number] months prior to the expiration of the then-current Term.

Option B: No Renewal Option: This lease shall not be automatically renewed. Tenant and landlord may mutually agree to a new lease under different terms and conditions, but are not required to do so.

Rent

The base rent for the Premises shall be [Dollar Amount] per month (the “Base Rent”), payable in advance on the first day of each month during the Term.

Option A: Percentage Rent: In addition to the Base Rent, Tenant shall pay percentage rent equal to [Percentage]% of Tenant’s monthly gross sales exceeding [Dollar Amount]. "Gross sales" are defined as per Colorado law and will allow for deduction of sales taxes and discounts only.

Option B: No Percentage Rent: Tenant shall only be responsible for the Base Rent.

The security deposit shall be [Dollar Amount], to be held by Landlord in accordance with Colorado law.

Option A: Rent Increase: The Base Rent shall increase by [Percentage]% on [Date].

Option B: Rent Increase: The Base Rent shall increase annually based on the Consumer Price Index (CPI) for [City, State], as published by the U.S. Department of Labor, Bureau of Labor Statistics.

All payments shall be made by [Form of Payment, e.g., check, ACH] to [Payee Name and Address].

Tenant Improvement Allowance

Option A: Tenant Improvement Allowance Provided: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount] (the "TIA") to be used for improvements to the Premises. Tenant shall submit plans for approval prior to any work.

Option B: No Tenant Improvement Allowance: No tenant improvement allowance will be provided.

The TIA must be spent within [Number] days of lease commencement.

All improvements must comply with Colorado building codes. Landlord shall receive copies of lien waivers from all contractors pursuant to Colorado construction lien law.

Additional Charges

Tenant shall pay the following additional charges:

Common Area Maintenance (CAM) charges, allocated as [Percentage]% of total CAM expenses.

Trash/Grease Trap Maintenance fees.

Water/Sewer/Utility charges, as separately metered.

Snow Removal costs, allocated as [Percentage]% of total snow removal expenses.

Pest Control costs, allocated as [Percentage]% of total pest control expenses.

Real Estate Taxes

Tenant shall pay its proportionate share of real estate taxes and assessments for the Premises, allocated as [Percentage]% of the total property taxes.

This includes any pass-throughs for obligations within Tax Increment Financing (TIF) districts, if applicable.

All payments must align with Colorado property tax laws and practices.

Repair and Maintenance

Landlord shall maintain the building structure, roof, plumbing, and major systems.

Tenant shall be responsible for maintaining the restaurant equipment, hood, grease trap, interior fixtures, and compliance with Colorado health department regulations, including reinspection and closure protocols.

Landlord shall provide written notice to Tenant of any required repair work by Landlord.

Insurance

Tenant shall maintain the following insurance coverage:

Commercial general liability insurance with minimum coverage of [Dollar Amount], including excess liability coverage if serving alcohol.

Property coverage for restaurant equipment.

Business interruption insurance.

Landlord shall be named as an additional insured on Tenant’s commercial general liability policy.

Fire/Casualty Loss Allocation: In the event of fire or casualty loss, rebuild/termination rights shall be determined in accordance with Colorado law.

Tenant Improvements

All tenant improvements must comply with Colorado building codes and be performed by licensed and insured contractors.

Tenant shall submit construction plans to Landlord for approval prior to commencement of any work.

If the Premises are located in a historic district, all improvements must comply with applicable historic building controls.

Condition of Premises

Option A: As-Is Condition: The Premises are leased in “as is” condition.

Option B: Landlord Delivered Condition: Landlord represents that the Premises are delivered according to Exhibit B.

Tenant has the right to inspect the Premises prior to lease commencement, including mold, radon, lead, and asbestos disclosures as required by Colorado law.

Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Lease if such failure is caused by a force majeure event, including government shutdowns or other events beyond its reasonable control.

Option A: COVID-19 Clause: In the event of government-mandated closures or occupancy restrictions related to COVID-19, rent shall be abated or adjusted as follows: [Describe Abatement or Adjustment Protocol].

Option B: No COVID-19 Clause.

Signage

Tenant shall have the right to install signage on the Premises, subject to compliance with local sign codes and Landlord approval.

Tenant may display menu boards.

Option A: Exclusivity Clause: Landlord agrees not to lease space in the building to another restaurant of the same cuisine/license within the center.

Option B: No Exclusivity Clause.

Licensing

Tenant shall obtain and maintain all necessary Colorado restaurant and liquor licenses.

Tenant shall follow procedures for liquor license transfer or “hold” as required by Colorado law.

Tenant shall have the right to cure any licensing defaults.

Subleasing and Assignment

Tenant shall not sublease the Premises or assign this Lease without Landlord’s written consent, which shall not be unreasonably withheld.

Any sublease or assignment must comply with Colorado law. Special provisions apply for transfer with liquor license or franchise relationship.

Default and Remedies

If Tenant defaults, Landlord shall provide written notice and a cure period as required by Colorado law.

Landlord may exercise all remedies available under Colorado law, including eviction.

Move-In/Move-Out

Tenant shall move in and move out according to agreed-upon procedures.

Upon termination, Tenant shall return the Premises in the condition required by this Lease, including cleaning of the kitchen, equipment decommissioning, grease trap cleanout, and proper removal of furniture/fixtures.

Security deposit return shall be handled in accordance with Colorado Revised Statutes §38-12-103.

Any property left behind by Tenant shall be handled according to Colorado law.

Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through negotiation, mediation, or arbitration in [City, Colorado].

This Lease shall be governed by the laws of the State of Colorado.

Attorney’s fees shall be allocated as determined by Colorado law.

Environmental Compliance

Tenant shall comply with all environmental laws and regulations, including those related to hazardous materials specific to restaurant use (cleaning chemicals, used oil).

Tenant shall comply with oil/grease/fat trap regulations and shall indemnify Landlord for any environmental or health code violations under state and municipal authority.

Right of Entry

Landlord shall have the right to enter the Premises for reasonable purposes with reasonable advance notice, balanced against Colorado privacy law and restaurant operational needs.

Regulatory Compliance

Tenant shall comply with all sector-specific regulations, including those of the Colorado Department of Public Health & Environment, state/local food safety rules, liquor enforcement, and any marijuana prohibition.

Leasehold Improvements Lien Waivers

Tenant shall provide leasehold improvements lien waivers in favor of Landlord, and shall not file any liens incompatible with Colorado law.

ADA Compliance

Tenant shall comply with the Americans with Disabilities Act (ADA) as applied to the Premises and state accessibility standards.

Shopping Center Rules (If Applicable)

If the Premises are part of a larger development or shopping center, Tenant shall participate in shared marketing, adhere to hours of operation policies, exclusivity agreements, and any restaurant sub-association rules.

Local/Sales Tax

Tenant shall comply with Colorado-specific local/sales tax remittance requirements and provide gross sales reports for audit purposes.

Tenant shall comply with kitchen waste, grease trap, or emissions reporting requirements to local wastewater authority. Tenant shall indemnify Landlord for any violations.

Representations and Warranties

Option A: "As Is" Provision: Except as otherwise expressly provided in this Lease, neither Landlord nor its agents have made any representations or warranties with respect to the Premises or the suitability thereof for any particular purpose.

Option B: Representations and Warranties: Landlord makes the following representations and warranties: [List Warranties, e.g., Capacity of fire suppression, Permitted occupant load, Sewer tap rights, or similar utilities].

Anti-Discrimination and Labor Compliance

Tenant shall comply with all Colorado public accommodation and employment laws.

Restaurant Reopening/Closure Procedures

Option A: Seasonal Restaurant: This section applies to seasonal restaurants only. Specific procedures for reopening and closure are detailed in [Document Name].

Option B: "Go Dark" Provisions: In the event that Tenant temporarily ceases operation, it shall abide by the "go dark" provisions described in [Document Name], including any landlord recapture right compliant with Colorado law.

COVID-19/Public Health Provisions

The following provisions address any potential state and local closures or occupancy restrictions related to COVID-19 or future public health events: [Detailed Procedures].

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

Landlord:

____________________________

[Landlord's Full Legal Name]

____________________________

[Landlord's Signature]

Tenant:

____________________________

[Tenant's Full Legal Name]

____________________________

[Tenant's Signature]