Hawaii restaurant lease agreement template

Hawaii Restaurant Lease Agreement

This Hawaii Restaurant Lease Agreement (the “Agreement”) is made and entered into as of this [Date], by and between [Landlord Legal Name], residing at [Landlord Address] (“Landlord”), and [Tenant Legal Name], residing at [Tenant Address] (“Tenant”).

Property Description

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises located at [Street Address], Hawaii, bearing Tax Map Key (TMK) number [TMK Number] (the “Premises”).

The Premises consist of approximately [Square Footage] square feet, including a dining area of approximately [Dining Area Square Footage] square feet, a kitchen area of approximately [Kitchen Square Footage] square feet, a prep area of approximately [Prep Area Square Footage] square feet, storage area of approximately [Storage Area Square Footage] square feet, and restroom facilities.

The Premises include exclusive use of [List exclusive-use areas, e.g., outdoor seating area].

The Tenant shall have access to the following common areas: [List common areas, e.g., parking lot, loading zone, refuse collection site].

Permitted Use

The Premises shall be used solely for the operation of a restaurant.

Option A: A full-service restaurant.

Option B: A quick-service restaurant.

Option C: A takeout restaurant.

Option D: A bar/lounge.

The Tenant is permitted to provide the following food and beverage services: [Specify permitted food and beverage services].

The Tenant shall comply with all applicable Hawaii state and county zoning and special use permits for restaurant operation, including compatibility with alcohol service regulations and the property's underlying zoning designation. The Tenant is responsible for obtaining and maintaining any necessary liquor licenses.

The Tenant shall not change the use of the Premises without the Landlord's prior written consent. Illegal activities are strictly prohibited.

Lease Term

The term of this Lease shall be [Number] years, commencing on [Start Date] and ending on [End Date].

Option A: Fixed term.

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

The Tenant must provide [Number] months' notice for renewal or termination.

Rent and Security Deposit

The base rent for the Premises shall be [Dollar Amount] per month (the “Base Rent”).

Option A: Fixed Base Rent for the entire lease term.

Option B: Base Rent will increase annually by [Percentage]%.

Option C: Percentage rent of [Percentage]% of gross sales exceeding [Dollar Amount] per month. The Landlord shall have the right to audit the Tenant's sales records upon [Number] days' written notice.

In addition to Base Rent, the Tenant shall pay applicable Hawaii General Excise Tax (GET).

The Tenant shall pay a security deposit of [Dollar Amount] (the “Security Deposit”) to the Landlord upon execution of this Lease. The Security Deposit shall be held by the Landlord in accordance with Hawaii law.

Rent is due on the [Day] of each month. Late fees of [Dollar Amount] will be assessed for payments received after [Day] of the month. Acceptable payment methods are [List acceptable payment methods].

Operating Expenses

This Lease is a:

Option A: Triple Net Lease. The Tenant shall be responsible for all property taxes, insurance, and common area maintenance expenses (CAM).

Option B: Gross Lease. The Landlord shall be responsible for all property taxes, insurance, and common area maintenance expenses (CAM).

Responsibility for Utilities:

Water: [Landlord/Tenant]

Sewer: [Landlord/Tenant]

Gas: [Landlord/Tenant]

Electricity: [Landlord/Tenant]

Rubbish Removal: [Landlord/Tenant]

Grease Trap Pumping: [Landlord/Tenant]

Pest Control: [Landlord/Tenant]

Maintenance and Repairs

HVAC Maintenance: The [Landlord/Tenant] is responsible for maintaining the HVAC system, including regular servicing every [Number] months.

Kitchen Hood and Exhaust System: The Tenant is responsible for cleaning the kitchen hood and exhaust system in compliance with Hawaii state fire code.

Fire Suppression System: The Tenant is responsible for inspection and compliance of the fire suppression system in accordance with Hawaii state fire code.

Grease Trap Maintenance: The Tenant is responsible for timely grease trap maintenance meeting municipal rules.

Permits and Licenses

The Tenant is responsible for obtaining and maintaining all required permits and licenses, including a Hawaii State Department of Health food establishment permit, building occupancy permit, and Honolulu Liquor Commission license (if serving alcohol).

Insurance and Indemnification

The Tenant shall maintain liability insurance with a minimum coverage of [Dollar Amount], property insurance, and workers' compensation insurance (if applicable). The Landlord shall be named as an additional insured party.

The Tenant shall indemnify and hold the Landlord harmless from any and all claims, losses, damages, and liabilities arising from the Tenant's use of the Premises.

Tenant Improvements

Any tenant buildout or improvements require the Landlord's prior written consent. The Tenant is responsible for obtaining all necessary permits (e.g., City & County of Honolulu) and providing lien waivers.

Upon lease termination, [Specify whether restaurant equipment, fixtures, trade fixtures, and business-specific installations are considered landlord or tenant property and their disposition].

Restaurant-Specific Operations

Odor, Noise, and Ventilation: The Tenant shall control odor, noise, and ventilation in compliance with relevant city ordinances.

Pest Control: The Tenant shall maintain regular pest control protocols adapted for Hawaii's climate and species in restaurant environments.

Landlord's Right of Entry

The Landlord shall have the right to enter the Premises for inspection, repairs, and emergencies, with reasonable notice to the Tenant, except in cases of emergency.

Property Damage and Business Interruption

In the event of property damage or business interruption (including hurricanes, flooding, volcanic activity, earthquakes, and other Hawaii-specific risks), insurance and rent abatement terms shall be as follows: [Specify insurance and rent abatement terms].

Health Inspection Failures

In the event of health inspection failures or violation notices, the Landlord shall have the right to cure such failures, with the cost of such cure borne by the Tenant.

Signage

Signage standards, limits, and compliance with Hawaii signage ordinances and historic district rules (if applicable) shall be as follows: [Specify signage standards].

Parking

Parking allocation for customers, employees, and delivery vehicles shall be as follows: [Specify parking allocation].

Trash and Recycling

Trash, recycling, and composting obligations, storage of cooking oil/fats, and use of any designated waste areas shall be as follows: [Specify trash and recycling obligations].

Dispute Resolution

Any disputes arising out of this Agreement shall be resolved through negotiation, mediation, or arbitration in accordance with Hawaii commercial lease practices. Venue for legal disputes shall be in the county where the property is located, and Hawaii law shall govern.

Compliance with Laws

The Tenant shall comply with all employer obligations under Hawaii labor law if employees are present on-site.

Move-In and Move-Out

Procedures for tenant move-in and move-out, including final inspection, repair of damage, removal of trade fixtures, professional cleaning to food-service standards, and security deposit return per statutory deadlines, shall be as follows: [Specify move-in/move-out procedures].

Condition of Premises

The Premises are leased “as is.” [Disclose any material property defects or environmental hazards under Hawaii law].

Force Majeure

Force majeure events shall include Hawaii-specific natural disaster risks, and procedures for operational disruption shall be as follows: [Specify force majeure procedures].

Taxes

The Tenant shall comply with Hawaii Department of Taxation rules for GET, TAT (if applicable), and provide regular submission of proof of payment to the Landlord.

Association Rules and Covenants

This Lease is subject to any applicable community association rules, historic preservation covenants (if in special districts), or other recorded encumbrances affecting restaurant operation.

Franchise Operations (If Applicable)

If the Tenant is operating a franchise, the following provisions shall apply: [Specify franchise operation provisions].

Restaurant-Specific Utilities

The Landlord shall cooperate for the installation of restaurant-specific utilities (e.g., 3-phase power, natural gas lines, grease interceptors, fire alarms) and for periodic inspection/maintenance access for regulatory compliance.

Local Custom Practices

Any local custom practices for restaurant leases in Hawaii, such as requirements for percentage rent adjustments in tourist zones, permitted shared kitchen concepts, and local industry practices relating to maintenance and hours of operation, shall be followed.

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

_______________________________

[Landlord Legal Name]

_______________________________

[Tenant Legal Name]