Indiana restaurant lease agreement template

Indiana Restaurant Lease Agreement

This Restaurant Lease Agreement (the "Agreement") is made and entered into as of [Date], by and between [Landlord Full Legal Name], whose address is [Landlord Address], hereinafter referred to as "Landlord," and [Tenant Full Legal Name], whose address is [Tenant Address], hereinafter referred to as "Tenant."

Landlord and Tenant are sometimes collectively referred to as the “Parties” or individually as a “Party”. If either party is an entity, indicate below.

• Landlord Entity Type: [Landlord Entity Type, e.g., Individual, LLC, Corporation]
• Landlord Registered Agent: [Landlord Registered Agent Name, if applicable]
• Landlord Registered Agent Address: [Landlord Registered Agent Address, if applicable]
• Tenant Entity Type: [Tenant Entity Type, e.g., Individual, LLC, Corporation]
• Tenant Registered Agent: [Tenant Registered Agent Name, if applicable]
• Tenant Registered Agent Address: [Tenant Registered Agent Address, if applicable]

1. Leased Premises

Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at [Street Address], City of [City], County of [County], State of Indiana, consisting of approximately [Square Footage] square feet, more particularly described as follows: [Detailed Description of Premises, including floorplan description, dining areas, kitchen, storage, restrooms, patio, outdoor seating, parking spaces, garbage enclosures, delivery areas, signage space, and rights to use of liquor-license compliant spaces]

2. Permitted Use

The Leased Premises shall be used exclusively for the operation of a restaurant and/or food service establishment.

• Option A: Permitted cuisine/service style: [Specific Cuisine/Service Style, e.g., Italian Cuisine, Fast Casual].
• Option B: Tenant shall comply with all applicable Indiana Retail Food Establishment Sanitation Requirements (410 IAC 7-24), Indiana alcohol laws (if applicable), and all local health and building codes.

Tenant shall not use the Leased Premises for any other purpose without the prior written consent of Landlord. Tenant shall not sublet or assign this Lease without Landlord’s prior written consent, which consent shall not be unreasonably withheld. Tenant shall not use the Leased Premises in any manner that conflicts with any shopping center restrictions, exclusive use clauses, or radius restrictions applicable to the property.

3. Lease Term

The term of this Lease shall commence on [Commencement Date] and shall end on [End Date], unless sooner terminated as provided herein.

• Option A: Early occupancy for fit-out: Tenant shall be permitted early access to the Leased Premises on [Early Occupancy Date] for the purpose of performing tenant improvements, provided all necessary permits are obtained.
• Option B: Renewal Options: Tenant shall have [Number] options to renew this Lease for a term of [Renewal Term Length] years each, provided Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the expiration of the then-current term.

4. Rent

Tenant shall pay Landlord rent as follows:

• Base Rent: [Dollar Amount] per month, payable in advance on the [Day] day of each month, commencing on [Rent Commencement Date].
• Percentage Rent: In addition to the Base Rent, Tenant shall pay Landlord [Percentage]% of Tenant’s Gross Sales (as defined below) exceeding [Dollar Amount] per [Time Period]. Gross Sales shall mean the total revenue generated from all sales of food, beverages, and other items or services sold at or from the Leased Premises, less only returns and allowances. Percentage Rent shall be paid [Frequency of Payment, e.g., monthly, quarterly] within [Number] days after the end of each [Time Period], accompanied by a statement of Gross Sales certified by Tenant.
• Rent Escalation: The Base Rent shall increase by [Percentage]% per year, commencing on [Date].
• Security Deposit: Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount]. The security deposit shall be held by Landlord as security for the performance of Tenant’s obligations under this Lease and shall be returned to Tenant, less any deductions for damages or unpaid rent, within [Number] days after the termination of this Lease and Tenant’s vacation of the Leased Premises in accordance with Indiana law. Landlord [will/will not] pay interest on the security deposit as required by Indiana law.
• Late Fees: If rent is not received by the [Day] day of the month, Tenant shall pay a late fee of [Dollar Amount].
• Returned Payment Fees: For any payment returned due to insufficient funds, Tenant shall pay a fee of [Dollar Amount].
• Taxes: Tenant shall be responsible for paying all applicable Indiana sales, use, and food & beverage taxes related to Tenant’s business operations.

5. Common Area Maintenance (CAM)

Tenant shall pay its pro rata share of all Common Area Maintenance (CAM) expenses.

• Option A: Tenant’s pro rata share shall be [Percentage]% of all CAM expenses. CAM expenses shall include, but are not limited to, the costs of maintaining, repairing, and operating the common areas of the property, including parking areas, landscaping, lighting, and security. Landlord shall provide Tenant with a detailed statement of CAM expenses [Frequency of Statement, e.g., monthly, quarterly, annually].
• Option B: Tenant shall pay CAM charges of [Dollar Amount] per square foot per year, payable [Frequency of Payment, e.g., monthly, quarterly].

6. Tenant Improvements

Landlord [will/will not] provide Tenant with a Tenant Improvement (TI) allowance in the amount of [Dollar Amount].

• Option A: Landlord's Responsibilities: Landlord shall be responsible for [Description of Landlord's Build-Out Responsibilities].
• Option B: Tenant's Responsibilities: Tenant shall be responsible for obtaining all necessary city and county permits and a certificate of occupancy, as well as passing all food service, health, and sanitary inspections.

Landlord shall deliver the Leased Premises to Tenant in "broom clean" condition suitable for restaurant buildout. Tenant shall submit all construction plans for kitchen equipment, hood/ventilation, fire suppression, plumbing/grease interceptors, refrigeration, ADA compliance, and outdoor seating expansion to Landlord for approval prior to commencement of construction. All plans must comply with Indiana and local codes.

7. Repair and Maintenance

• Option A: Tenant shall be responsible for the repair and maintenance of the following: HVAC systems serving the Leased Premises, exhaust systems, fire suppression systems, plumbing, pest abatement, walk-in coolers/freezers, and roof penetrations from kitchen exhaust.
• Option B: Landlord shall be responsible for the repair and maintenance of the roof, foundation, and exterior walls of the Leased Premises, except to the extent such repairs are necessitated by the negligence or willful misconduct of Tenant.

Tenant is responsible for grease trap and water/sewer line maintenance, grease/fire hazard mitigation, and annual inspection/reporting requirements in Indiana.

8. Licenses and Permits

Tenant shall be responsible for obtaining and maintaining all necessary food/beverage, health, and alcohol permits and licenses required to operate its restaurant in compliance with Indiana law. Tenant shall not operate the restaurant if any license is suspended or revoked.

• Option A: Alcohol License: Landlord agrees to cooperate with Tenant in the process of obtaining an alcohol license, including providing any necessary documentation or showing "landlord interest" as required by Indiana law.

9. Insurance

Tenant shall maintain the following insurance coverage:

• Property insurance covering the Leased Premises and Tenant’s personal property in an amount equal to the full replacement cost thereof.
• Commercial general liability insurance with minimum limits of [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate.
• Products liability insurance with minimum limits of [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate.
• Loss of income/business interruption insurance.
• Workers’ compensation insurance as required by Indiana law.

Tenant shall name Landlord as an additional insured on its commercial general liability insurance policy. Tenant to provide special insurance for outdoor dining/alcohol service if applicable.

10. Compliance with Laws

Tenant shall comply with all applicable federal, state, and local laws, ordinances, rules, and regulations, including but not limited to fire and life safety codes, ADA requirements, and environmental regulations.

• Option A: Fire Safety: Tenant shall be responsible for maintaining the kitchen fire suppression system in accordance with Indiana fire codes, including regular inspections and cleaning of the hood and ventilation system.

11. Signage

Tenant shall have the right to display signage (indoor and outdoor), menu boards, and branding, subject to Landlord’s approval and compliance with all applicable landlord signage restrictions and city ordinances.

12. Utilities

Tenant shall be responsible for the connection and payment of all utilities serving the Leased Premises, including electricity, gas, water, and sewer.

• Option A: Utility Upgrades: Tenant shall be responsible for any upgrades necessary to ensure sufficient electricity, gas, water, and sewer capacity for the operation of Tenant’s commercial kitchen equipment.

13. Default

If Tenant fails to pay rent when due or otherwise breaches any term or condition of this Lease, Landlord may terminate this Lease and pursue any remedies available under Indiana law.

• Option A: Cure Period: Tenant shall have [Number] days after written notice from Landlord to cure any default, except for the failure to pay rent, in which case Tenant shall have [Number] days to cure.

14. Assignment and Subletting

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

• Option A: Assignment of Liquor License: In the event of an assignment of this Lease, Landlord agrees to cooperate with Tenant in the assignment of any liquor license held by Tenant, subject to compliance with Indiana law.

15. Access

Landlord shall have the right to enter the Leased Premises at reasonable times to inspect the premises, make necessary repairs, or show the premises to prospective tenants or purchasers, provided Landlord gives Tenant reasonable advance notice, except in the case of an emergency.

16. Governing Law

This Lease shall be governed by and construed in accordance with the laws of the State of Indiana. Any legal action arising out of or relating to this Lease shall be brought in a court of competent jurisdiction in [County Name] County, Indiana.

17. 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 but not limited to acts of God, war, terrorism, strikes, fire, flood, pandemic, or government regulation. In the event of a force majeure event that prevents Tenant from operating its restaurant, Tenant shall be entitled to a rent abatement for the duration of the event.

18. Addenda

The following addenda are attached to and incorporated into this Lease:

• Personal Guarantee (if applicable)
• Landlord Lien Rights Addendum
• Subordination, Nondisturbance and Attornment Agreement (SNDA)
• Estoppel Certificate

19. 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.

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

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[Landlord Full Legal Name]

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[Tenant Full Legal Name]