Iowa restaurant lease agreement template

Iowa Restaurant Lease Agreement

This Iowa Restaurant Lease Agreement (the "Agreement") is made and entered into as of this [Date], by and between [Landlord Name], a [Landlord Entity Type], with a principal place of business at [Landlord Address] ("Landlord"), and [Tenant Name], a [Tenant Entity Type], with a principal place of business at [Tenant Address] ("Tenant"). If either party is an entity, its Iowa registered agent for service of process is: [Registered Agent Name] at [Registered Agent Address].

1. Premises

The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises located at [Property Address], Suite/Unit [Suite/Unit Number] (the "Premises").

The Premises are further described as follows:

• Option A: The Premises consist of approximately [Square Footage] square feet, including [Kitchen Square Footage] square feet of kitchen space and [Dining Square Footage] square feet of dining area.
• Option B: (Include a detailed diagram of the premises as Exhibit A attached hereto).
• The Premises also include:
  • Storage: [Storage Description]
  • Restroom Facilities: [Restroom Description]
  • Outdoor Seating/Patio: [Outdoor Seating Description]
  • Parking: [Parking Description]
  • Signage Rights: [Signage Description]
  • Drive-Thru/Delivery Window Access: [Drive-Thru Description]
  • Exclusive-Use Spaces: [Exclusive Use Spaces Description]

2. Permitted Use

The Premises shall be used and occupied solely for the purpose of operating a restaurant or food and beverage service establishment.

Options for further specifying restrictions:

• Option A: The Tenant is restricted to serving [Menu Type] cuisine.
• Option B: The Tenant [is/is not] permitted to serve alcoholic beverages, subject to obtaining and maintaining all required Iowa alcoholic beverage permits and local approvals.
• Option C: The Tenant [is/is not] permitted to provide takeout and/or delivery services.
• Option D: The Tenant's hours of operation shall be limited to [Hours of Operation].

Tenant shall comply with all applicable Iowa public health, food safety, and local food service licensing ordinances.

Restrictions:

• Option A: The Tenant [is/is not] permitted to assign this lease or sublet the Premises.
• Option B: Shared kitchens [are/are not] permitted.

3. Lease Term

The term of this Lease shall be [Fixed/Periodic].

• Option A: Fixed Term: The Lease shall commence on [Commencement Date] and expire on [Expiration Date].
• Option B: Periodic Term: The Lease shall commence on [Commencement Date] and continue on a [Monthly/Yearly] basis until terminated as provided herein.

Possession and Delivery of Premises: Landlord shall deliver possession of the Premises to Tenant on the Commencement Date, provided that:

• Option A: Tenant has obtained all required restaurant and/or alcohol licenses.
• Option B: Landlord has completed all food service code-mandated installations, including grease traps, commercial exhaust hoods, fire suppression systems, and ADA compliance improvements.

4. Rent

Tenant shall pay Landlord rent in the amount of [Rent Amount] per [Month/Year].

Security Deposit: Tenant shall deposit with Landlord a security deposit of [Security Deposit Amount], which shall be held and disbursed in accordance with Iowa law. Landlord shall return the security deposit, less any lawful deductions for damage to the Premises or unpaid rent, within [Number] days after the termination of this Lease and Tenant’s surrender of the Premises.

Payment Frequency: Rent shall be paid [Monthly/Quarterly/Annually] in advance.

Acceptable Payment Methods: Rent shall be payable by [Payment Methods].

Escalation/CPI Adjustment:

• Option A: Rent shall increase by [Percentage]% per year.
• Option B: Rent shall be adjusted annually based on the Consumer Price Index (CPI) as published by the U.S. Department of Labor.
• Option C: There shall be no rent escalation during the lease term.

Additional Rent:

• Real Estate Tax Passthroughs: Tenant shall pay, as additional rent, [Percentage]% of any increase in real estate taxes on the Property.
• CAM Fees: Tenant shall pay, as additional rent, [CAM Fee Amount] per [Month/Year] for common area maintenance (CAM).

Utility Charges: Tenant shall be responsible for all utility charges, including water, sewer, waste disposal (including grease/oil removal), and electricity.

Separate Charges: Tenant shall be responsible for any separate charges for pest control, hood cleaning, sidewalk/walk-in freezer maintenance.

Local Option Sales Tax: Tenant is responsible for collecting and remitting all applicable Iowa local option sales taxes.

5. Exclusive Use/Non-Competition

• Option A: Landlord shall not lease any other space in the [Building/Shopping Center] to a restaurant that is substantially similar to Tenant’s restaurant (e.g., [Specific Restriction]).
• Option B: No exclusive use provision applies.

Tenant has the right to operate a [Type of Restaurant] restaurant at the Premises.

6. Licenses and Permits

Tenant shall be responsible for obtaining and maintaining all required licenses and permits, including:

• Iowa food establishment license.
• Alcoholic beverage permit (if applicable), including required zoning and local city council approvals.
• Fire department operating permit.
• Waste management compliance (e.g., used oil, greywater).

7. Tenant Improvements and Build-Out

All tenant improvements and build-out shall be subject to Landlord’s approval and shall comply with all applicable Iowa commercial building codes, municipal health and safety ordinances, and inspections.

Responsibility for installation, maintenance, and compliance of:

• Kitchen ventilation.
• Grease traps.
• ADA-mandated modifications.
• Refrigeration.
• Food handling equipment.

8. Restoration, Alteration, and Signage

At the end of the Lease, Tenant shall remove all tenant fixtures and repair any damage caused by such removal, returning the Premises to its original condition.

Signage shall be subject to Landlord's approval and shall comply with all applicable local ordinances. Tenant is responsible for obtaining all necessary signage permits from local authorities.

Return-to-Shell Condition: Upon termination, the tenant must return the premises to a "shell condition", meaning [Describe the specific requirements for the shell condition, including removal of equipment, patching walls, etc.]

9. Maintenance and Repair

Tenant Responsibilities: Tenant shall be responsible for the maintenance and repair of all food service equipment, exhaust hoods, kitchen plumbing, electrical, HVAC serving the Premises, refrigeration, and floor drains, and compliance with Iowa fire, health, and safety codes.

Landlord Responsibilities: Landlord shall be responsible for the maintenance and repair of the structural components of the building, roof, exterior, and common areas.

10. Damage and Access

Tenant shall report any premises damage, equipment malfunction, or health department closure orders to Landlord immediately.

Landlord shall have the right to access the Premises for periodic inspections, especially for fire and sanitary code compliance, upon [Number] hours’ notice to Tenant, except in cases of emergency.

11. Utilities and Waste

Utilities: [Describe utility metering/allocation].

Garbage/Waste: Tenant shall comply with all local Iowa ordinances regarding garbage, organic waste, and recycling.

Hazardous Waste: Tenant shall be responsible for the proper handling and disposal of all contaminated or hazardous waste.

12. Insurance

Tenant shall obtain and maintain the following insurance coverage:

• Liability insurance (minimum coverage of [Amount] per Iowa law).
• Property/casualty insurance for contents.
• Business interruption insurance.

Tenant shall name Landlord as an additional insured on all policies.

Tenant shall provide Landlord with proof of insurance upon request.

Compliance with fire and safety ordinances, hood cleaning, suppression systems is required.

13. Inspections and Enforcement

The Premises shall be subject to inspections by the Iowa Department of Inspections and Appeals.

In the event of persistent health/safety violations or loss of required restaurant licenses, Landlord shall have the right to terminate this Lease.

14. Default, Breach, and Remedy

Default: The occurrence of any of the following shall constitute a default under this Lease:

• Failure to pay rent when due.
• Failure to comply with health code regulations.
• Damage to the Premises caused by Tenant's operations.

Cure Period: Tenant shall have [Number] days to cure any default, except for non-payment of rent, in which case the cure period shall be [Number] days.

Remedy: In the event of a default, Landlord shall have all remedies available under Iowa law, including the right to terminate this Lease and re-enter the Premises, subject to Landlord’s mitigation obligations as per Iowa law.

15. Move-In/Move-Out

Move-In: [Describe move-in procedures].

Move-Out: Tenant shall remove all personal property (including walk-in units and kitchen fixtures) and restore the Premises to its original condition, reasonable wear and tear excepted.

Security Deposit Return: Landlord shall return the security deposit, less any lawful deductions, within [Number] days of Tenant’s surrender of the Premises.

Holdover: If Tenant remains in possession of the Premises after the expiration of the Lease term, Tenant shall pay holdover rent at a rate of [Percentage]% of the then-current rent.

16. Indemnification

Tenant shall indemnify and hold Landlord harmless from any and all claims, losses, and liabilities arising out of Tenant's use of the Premises, subject to limitations under Iowa law.

Allocation of risk for foodborne illnesses or liquor liability: [Describe the allocation of risk].

17. Compliance with Laws

Tenant shall comply with all applicable federal, state, and municipal regulations, including:

• ADA.
• Iowa Civil Rights Act.
• Zoning regulations.
• Health codes.
• Fire codes.
• Iowa alcohol laws.
• Local food tax collection/filing responsibilities.

18. Governing Law

This Lease shall be governed by and construed in accordance with the laws of the State of Iowa.

Venue: Any legal action arising out of or relating to this Lease shall be brought in the state or federal courts located in [County] County, Iowa.

Dispute Resolution: In the event of a dispute, the parties shall first attempt to resolve the dispute through [Negotiation/Mediation/Arbitration].

19. Landlord's Warranties

Landlord warrants that the Premises are fit for restaurant use and that Landlord has disclosed any prior environmental or sanitary violations and that there are no known code deficiencies.

20. Environmental Compliance

Tenant shall comply with all applicable Iowa environmental health, food sanitation, waste management, and stormwater regulations.

21. Adjustments

This lease can be adjusted based on actual restaurant capacity, hours, services (e.g., catering, drive-through, delivery, bar area), and business needs, and tailor all clauses in accordance with current Iowa commercial lease, restaurant, and food service statutes and industry best practices.

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

Landlord:

[Landlord Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title]

Tenant:

[Tenant Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title]