Maine restaurant lease agreement template

Maine Restaurant Lease Agreement

This Maine Restaurant Lease Agreement (the "Agreement") is made and entered into as of [Date], by and between:

• [Landlord Name], residing at [Landlord Address] ("Landlord"), and
• [Tenant Name], residing at [Tenant Address] ("Tenant"). If Tenant is a business entity, its type is: [Business Entity Type].
• If applicable, Tenant’s business entity name is: [Business Entity Name].

1. Leased Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the following described premises (the "Premises") for use as a restaurant:

• Municipal Address: [Address]
• Detailed Property Description: [Lot and Building Details]
• Total Square Footage: [Square Footage]
• Configuration:
  • Kitchen: [Kitchen Description]
  • Dining Area: [Dining Area Description]
  • Bar Area: [Bar Area Description]
  • Pantry: [Pantry Description]
  • Storage: [Storage Description]
  • Office: [Office Description]
  • Outdoor Seating: [Outdoor Seating Description]
  • Restrooms: [Restroom Description]
  • Parking: [Parking Description]
• Exclusive Use Areas: [List Exclusive Use Areas]
• Shared Use Areas: [List Shared Use Areas]

2. Fixtures, Appliances, Equipment and Furniture

The Landlord provides the following fixtures, appliances, equipment, and furniture (the "Equipment") in the Premises: [Detailed List of Equipment].

• Option A: Landlord owns the Equipment and is responsible for maintenance and replacement.
• Option B: Tenant owns the Equipment and is responsible for maintenance and replacement.
• Option C: Landlord owns the Equipment and is responsible for maintenance, while Tenant is responsible for replacement.
• Option D: Tenant owns specific items of Equipment as specified here: [List specific items] and is responsible for their maintenance and replacement. Landlord owns all other Equipment and is responsible for its maintenance and replacement.

3. Permitted Use

The Premises shall be used solely for the operation of a restaurant, specifically for:

• Type of Cuisine: [Cuisine Type]
• Permitted Hours of Operation: [Hours of Operation]
• Live Entertainment: [Yes/No; if yes, specify details]
• Alcohol Service: [Yes/No]
• Catering: [Yes/No]
• Takeout: [Yes/No]

The Tenant shall comply with all applicable Maine zoning, health, fire, and food safety regulations. Illegal uses or unapproved subleasing are prohibited.

4. Lease Term

• Commencement Date: [Date]
• Expiration Date: [Date]
• Initial Lease Term: [Number] years.
• Option A: Renewal Option: Tenant shall have the option to renew this lease for [Number] additional term(s) of [Number] years each, provided Tenant gives Landlord written notice of its intention to renew at least [Number] months prior to the expiration of the then-current term.
• Option B: No Renewal Option.
• Option C: Early Termination: Tenant may terminate this lease prior to the expiration date, subject to [Number] months written notice to Landlord and payment of a termination fee of [Dollar Amount].

5. Rent

• Base Rent: [Dollar Amount] per month.
• Percentage Rent:
  • Option A: In addition to the Base Rent, Tenant shall pay to Landlord [Percentage]% of Gross Sales exceeding [Dollar Amount] per [Month/Quarter/Year].
  • Option B: No Percentage Rent.
• Security Deposit: [Dollar Amount], to be returned within [Number] days of lease termination, less deductions for damages beyond normal wear and tear. Application of the deposit is limited to: [List permissible applications of security deposit].
• Annual Escalation:
  • Option A: The Base Rent shall increase annually by [Percentage]%.
  • Option B: The Base Rent shall increase annually based on the Consumer Price Index (CPI). The adjustment will be made on [Date] of each year, using the CPI for [Specific CPI] published for [Month] of the preceding year.
  • Option C: No annual escalation.
• Payment Instructions: Rent is due on the [Day] of each month, payable to [Payee Name] at [Payment Address]. Acceptable methods of payment are: [List Acceptable Methods].
• Late Fees: A late fee of [Dollar Amount] will be charged for payments received more than [Number] days after the due date.
• Grace Period: [Number] day grace period before late fees are applied.
• Bad Check Fee: [Dollar Amount] for returned checks.

6. Common Area Maintenance (CAM)

• Option A: Tenant shall be responsible for a pro-rata share of CAM charges, calculated as [Square Footage of Premises] / [Total Leasable Square Footage of Property].
• Option B: Tenant shall pay a fixed monthly CAM fee of [Dollar Amount].
• CAM charges include: snow removal, lawn care, trash removal, and [List other CAM charges].

Tenant is responsible for the following utilities: water, sewer, electricity, gas, internet, pest control, and shall maintain filters, grease traps, and exhaust systems.

7. Real Estate Taxes & Insurance

• Option A: Landlord is responsible for real estate taxes and property insurance.
• Option B: Tenant is responsible for a pro-rata share of real estate taxes and property insurance, calculated in the same manner as CAM charges.

Tenant shall be responsible for all Maine tax obligations, including sales and meals tax, personal property tax and Tenant shall register with Maine Revenue Services.

8. Restaurant Fit-Out and Permitting

Tenant is responsible for obtaining all necessary approvals and permits for restaurant fit-out, including construction, modifications, signage, liquor license transfer or application, egress, ADA and building code compliance, and food preparation areas. Tenant shall provide evidence of municipal and State of Maine health, fire, and occupancy permits before opening. All plans must be submitted to Landlord for approval prior to commencement of work.

9. Repairs and Maintenance

• Option A: Landlord is responsible for major repairs to the building structure and systems. Tenant is responsible for all other repairs and maintenance, including daily/weekly cleaning (especially for food-contact surfaces), annual fire suppression testing, regular health/safety inspections, and rodent/pest control.
• Option B: Landlord is responsible for all repairs and maintenance.
• Daily Cleaning Responsibilities: [Detailed list]
• Pest Control Frequency: [Frequency]

10. Landlord's Right of Entry

Landlord has the right to enter the Premises for inspection, repairs, or emergencies, with [Number] hours notice, except in cases of emergency. Landlord shall take precautions to protect tenant confidentiality of recipes, trade secrets, and customer information.

11. Business Interruption

In the event of a business interruption due to utility service failures, required health department closures, or force majeure events, rent may be reduced proportionally to the length of the interruption, subject to insurance coverage.

12. Insurance

Tenant shall maintain the following insurances: general liability ([Dollar Amount]), property ([Dollar Amount]), food contamination ([Dollar Amount]), business interruption ([Dollar Amount]), and liquor liability (if applicable, [Dollar Amount]). Landlord shall be named as an additional insured. All insurance must be with carriers licensed in Maine. Tenant shall provide proof of insurance to landlord before commencing operations.

13. Regulatory Compliance

Tenant shall comply with all State of Maine food safety regulations, allergen disclosure rules, fire code, health inspection requirements, liquor control board rules (for licensed premises), employment and wage regulations, public health orders, local noise ordinances, and any restrictions from town selectboard or city council.

14. Improvements

All improvements made by Tenant to the Premises shall require Landlord's written approval.

• Option A: All improvements shall become the property of the Landlord upon termination of the lease.
• Option B: Tenant may remove improvements at the end of the lease, provided Tenant restores the Premises to its original condition.

15. Move-Out Procedures

Upon termination of the lease, Tenant shall:

• Clean the Premises.
• Remove all food inventory.
• Repair any damage beyond normal wear and tear.
• Decommission and clean grease traps.
• Obtain certified cleaning of ventilation.
• Dispose of all owned equipment.
• Transfer health or alcohol licenses (if possible and agreed upon).
• Reconcile deposits.
• Return keys, codes, and security procedures.

16. Default and Remedies

In the event of default by Tenant, Landlord shall provide written notice and a [Number] day cure period, as mandated by Maine law. Landlord shall have all remedies available under Maine law, including termination of the lease.

17. Dispute Resolution

Any disputes arising under this Agreement shall be resolved through:

• Option A: Negotiation.
• Option B: Mediation in [City/Town], Maine.
• Option C: Binding arbitration in [City/Town], Maine, under the rules of the American Arbitration Association.

This Agreement shall be governed by the laws of the State of Maine, and jurisdiction shall be in [County] County, Maine.

18. Cooperation and Record Keeping

Landlord and Tenant shall cooperate on necessary governmental documentation and inspections, and maintain all records as required under Maine law, including food safety and sales tax records.

19. Required Disclosures

• Maine Truth in Renting Disclosure: [Include required disclosure language]
• Environmental Disclosure: [Include disclosure regarding lead paint, hazardous materials, proximity to protected areas/waterways]

20. Non-Discrimination

Landlord shall not discriminate against Tenant in leasing the Premises based on any protected characteristic under the Maine Human Rights Act.

21. Emergency Contacts

• Landlord Contact for Emergencies: [Name and Phone Number]
• Tenant Contact for Emergencies: [Name and Phone Number]

22. Regulatory Changes

The terms of this lease may be adjusted in response to changes in state or municipal regulatory requirements, and all amendments must be in writing.

23. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether oral or written.

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

____________________________
[Landlord Name]

____________________________
[Tenant Name]