When drafting a restaurant lease agreement, the landlord should clearly specify permitted use, health and safety compliance requirements, and restrictions on activities such as late-night operations or alcohol service.
Payment terms must be detailed, including base rent, percentage rent tied to sales (if applicable), common area maintenance charges, and provisions for utilities and waste disposal costs.
It is advisable to address tenant improvements for kitchen build-outs, ventilation systems, and signage, while requiring proper insurance and indemnification to protect the landlord from potential liabilities.