Illinois restaurant lease agreement template

Illinois Restaurant Lease Agreement

This Restaurant Lease Agreement ("Lease") is made and entered into as of this [Date of Signing], by and between [Landlord Full Legal Name], residing at [Landlord Illinois Address] ("Landlord"), and [Tenant Full Legal Name], residing at [Tenant Illinois Address] ("Tenant").

1. Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises located at [Street Address], Suite/Space Number [Suite/Space Number], in the city of [City], county of [County], Illinois, consisting of approximately [Total Square Footage] square feet, as depicted in the floor plan attached hereto as Exhibit A. The Premises includes the following areas:

• Kitchen Layout: [Description of Kitchen Layout]
• Dining Area: [Description of Dining Area]
• Bar Area: [Description of Bar Area, e.g., seating, taps]
• Restrooms: [Number] restrooms, [Description of Restrooms]
• Food Storage: [Description of Food Storage Areas]
• Walk-ins: [Number] walk-in coolers/freezers
• Loading Areas: [Description of Loading Areas]
• Exclusive Use Areas: [List of Exclusive Use Areas]
• Common Areas: [List of Common Areas]

2. FF&E (Fixtures, Furniture, and Equipment)

The following FF&E are included in the Lease: [Detailed list of FF&E, including hoods, fire suppression, grease traps, kitchen appliances, ventilation, etc.].

• Option A: Landlord Owned & Maintained: The Landlord owns and is responsible for maintaining the following FF&E: [List].
• Option B: Tenant Owned & Maintained: The Tenant owns and is responsible for maintaining the following FF&E: [List].
• Option C: Tenant Owned, Landlord Maintained: The Tenant owns the following FF&E: [List], but the Landlord is responsible for its maintenance.
• Option D: Landlord Owned, Tenant Maintained: The Landlord owns the following FF&E: [List], but the Tenant is responsible for its maintenance.

3. Permitted Use

The Premises shall be used solely for the operation of a restaurant, specializing in [Type of Cuisine], including on-premise food preparation and, if applicable, the sale of alcoholic beverages pursuant to applicable Illinois and local laws.

• Option A: Exclusivity: Landlord agrees not to lease other spaces in the building to restaurants specializing primarily in [Type of Cuisine].
• Option B: Restriction: Tenant shall not offer [Specific Food Item or Cuisine] for sale.

Tenant shall not change the use of the Premises, engage in retail sales beyond prepared food, provide entertainment, operate a catering business, or utilize third-party delivery services without the Landlord's prior written consent.

4. Compliance with Laws

Tenant shall comply with all applicable Illinois state, Cook County, and municipal laws, including, but not limited to, Illinois Restaurant Requirements, Illinois Food Handling regulations, local building and health codes, sanitary regulations, occupancy permits, the Americans with Disabilities Act (ADA), and, if applicable, Illinois liquor licensing requirements.

Tenant shall maintain all required business, sanitary, food service, and liquor licenses and permits, providing copies to the Landlord upon request.

5. Lease Term and Rent Commencement

The Lease term shall commence on [Lease Commencement Date] and expire on [Lease Expiration Date].

The rent commencement date shall be [Rent Commencement Date].

• Option A: Early Occupancy: Tenant shall have early occupancy of the Premises commencing on [Early Occupancy Date] for the purpose of construction and fit-out, subject to the terms and conditions set forth in Exhibit B.

Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Renewal Term], subject to the terms and conditions set forth in Exhibit C.

Early Termination: [Terms for Early Termination]

6. Rent and Security Deposit

The base monthly rent shall be [Rent Amount], payable in advance on the first day of each month. All rent payments shall be subject to Illinois Commercial Lease tax implications.

• Option A: Rent Escalation: The base monthly rent shall increase annually by [Percentage]% or according to the Consumer Price Index (CPI) as outlined in Exhibit D.

Tenant shall pay a security deposit of [Security Deposit Amount], to be held by Landlord in accordance with Illinois law regarding security deposits, and to be returned to Tenant within the time period stipulated under Illinois law, provided Tenant has complied with all the terms of this Lease.

7. Utilities

Tenant shall be responsible for the payment of all utilities serving the Premises, including, but not limited to, gas, electric, water, sewer, trash removal, and pest control.

• Option A: Metering: The Premises shall be separately metered for [Utilities].
• Option B: Sub-metering: The Premises shall be sub-metered for [Utilities], and Tenant shall pay its pro rata share of such utilities based on [Calculation Method].

8. Common Area Maintenance (CAM), Property Taxes, and Insurance

Tenant shall pay its pro rata share of CAM charges, which shall include [List of CAM Charges].

Tenant shall pay its pro rata share of property taxes for the building.

Tenant shall pay [Amount or Percentage]% towards Landlord's insurance costs.

9. Maintenance and Repairs

Landlord shall be responsible for maintaining the structure, roof, HVAC, plumbing, and fire suppression systems of the Premises.

Tenant shall be responsible for maintaining all kitchen equipment, daily cleaning, grease trap cleaning, vent hood cleaning, pest control, and compliance with Illinois-mandated food waste disposal practices.

10. Tenant Improvements/Construction

All tenant improvements and construction shall be subject to Landlord's prior written approval. Tenant shall submit plans and specifications to Landlord for review and approval.

All work shall be performed in a workmanlike manner and in compliance with all applicable building codes and regulations.

11. Signage and Exterior

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

Tenant shall have the right to [Description of rights, e.g., window displays, patio/sidewalk seating, outdoor advertising], subject to Landlord's approval and compliance with local ordinances.

12. Insurance

Tenant shall maintain the following insurance coverage: commercial general liability, fire, property, business interruption, food contamination, and, if applicable, liquor liability insurance, with minimum coverage limits of [Coverage Amounts].

Landlord shall be named as an additional insured on all policies. All policies shall be compliant with Illinois law.

13. Alterations

Tenant shall not make any alterations to the Premises without Landlord's prior written consent.

14. Landlord's Entry

Landlord shall have the right to enter the Premises for inspection, emergencies, or repairs, upon providing Tenant with [Number] hours' notice, except in the case of an emergency.

15. Assignment and Subletting

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

16. Indemnification

Tenant shall indemnify and hold Landlord harmless from and against any and all claims, losses, damages, liabilities, and expenses arising out of or relating to Tenant's use of the Premises, including, but not limited to, foodborne illness, slips and falls, and equipment hazards.

17. Environmental Compliance

Tenant shall comply with all environmental laws and regulations relating to the storage, use, and disposal of hazardous materials on the Premises.

18. Parking

Tenant shall have the right to use [Number] parking spaces for its employees and customers.

19. Permits

Tenant shall be responsible for obtaining all necessary permits and licenses for the operation of its restaurant, including, but not limited to, building permits, health permits, fire permits, and food service permits.

20. Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through direct negotiation. If the parties are unable to resolve the dispute through negotiation, the dispute shall be submitted to [Method of Dispute Resolution, e.g., mediation/arbitration/litigation] in Illinois.

21. Default

If Tenant fails to pay rent or otherwise breaches this Lease, Landlord shall have the right to terminate this Lease and pursue all available remedies under Illinois law, including, but not limited to, eviction and recovery of damages.

22. Casualty and Condemnation

If the Premises are damaged by fire or other casualty, this Lease shall terminate, or the rent shall be abated until the Premises are restored, depending on the extent of the damage.

23. Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Lease due to causes beyond its reasonable control, including, but not limited to, acts of God, war, terrorism, government shutdowns, or health emergencies.

24. Move-In and Move-Out

Tenant shall be responsible for removing all of its personal property from the Premises upon the expiration or termination of this Lease. The Tenant shall leave the premises in a "broom clean" condition.

25. Taxes

Tenant shall be responsible for paying all applicable taxes, including, but not limited to, Illinois Retailers' Occupation Tax, leasehold taxes, and any applicable municipal food and beverage taxes.

26. Nuisance

Tenant shall not engage in any nuisance or illegal conduct on the Premises.

27. Disclosures

• [Radon Disclosure, if applicable]
• [Lead Paint Disclosure, if applicable]
• [City of Chicago Fair Notice Ordinance Disclosure, if applicable]

28. Unique Features

• [Drive-Thru Terms, if applicable]
• [Hours of Operation Restrictions, if applicable]
• [Noise/Odor Mitigation Requirements, if applicable]
• [Exhaust Requirements, if applicable]
• [Patio/Sidewalk Seating Rules, if applicable]
• [Shared Restroom Management, if applicable]

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

____________________________
[Landlord Full Legal Name], Landlord

____________________________
[Tenant Full Legal Name], Tenant

Contact Information for Notices & Legal Service:

Landlord:
Address: [Landlord Illinois Address]
Phone: [Landlord Phone Number]
Email: [Landlord Email Address]

Tenant:
Address: [Tenant Illinois Address]
Phone: [Tenant Phone Number]
Email: [Tenant Email Address]