Maryland restaurant lease agreement template

Maryland Restaurant Lease Agreement

This Maryland Restaurant Lease Agreement (the “Lease”) is made and entered into as of this [Date], by and between [Landlord Name], residing at [Landlord Address] (hereinafter referred to as "Landlord"), and [Tenant Name], a [Tenant Entity Type, e.g., Corporation, LLC], whose principal place of business is located at [Tenant Address] (hereinafter referred to as "Tenant").

Landlord and Tenant agree as follows:

1. Leased Premises:

Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at [Property Address], Maryland, consisting of approximately [Square Footage] square feet, more particularly described in [Floor Plan/Exhibit Reference] (the "Premises").

Option B: The Premises includes [Suite/Unit Number], a floor plan attached as Exhibit A, and is located at [Property Address], Maryland. The Premises includes the following restaurant-related facilities: a [Kitchen, Dining Area, Bar, Restrooms, Storage, Delivery/Loading Zones, Outdoor Seating (Specify Dimensions), Number of Parking Spaces, Grease Trap Locations, Hood Vent and Exhaust Routes, Dumpster Areas, Utility Supply Points].

Option C: The Premises encompasses [Specific Designated Area], and shared use of [Shared Use Areas, e.g., walk-ins, patios, event spaces].

2. Permitted Use:

Option A: The Premises shall be used and occupied solely for the purpose of operating a [Restaurant, Bar, or Food Service Operation], offering [Service Type, e.g., Sit-down, Quick-service, Bar, Catering], and serving [Allowable Menu/Prep Activities].

Option B: Tenant shall operate a [Restaurant Type] restaurant, and any other use is strictly prohibited without Landlord’s prior written consent.

Option C: Tenant shall not engage in any non-food related business or sublease the Premises without the express written consent of the Landlord.

3. Compliance with Laws and Regulations:

Option A: Tenant shall comply with all applicable federal, state, county, and local laws, ordinances, and regulations, including, but not limited to, Maryland zoning, liquor license requirements, food service regulations, and health regulations, including those of the MDE and the Maryland Health Department.

Option B: This Lease is contingent upon Tenant obtaining all necessary licenses and permits, including but not limited to alcohol/beverage licenses, fire marshal approvals, use and occupancy permits, and signage permits.

Option C: Tenant shall be solely responsible for any violations arising from the operation of the Restaurant business, and any associated fees.

4. Lease Term:

Option A: The initial term of this Lease shall be [Number] years, commencing on [Commencement Date] and expiring on [Expiration Date].

Option B: Tenant shall have the option to extend the lease for an additional [Number] years, provided Tenant gives Landlord written notice at least [Number] months prior to the expiration of the initial term.

Option C: Early termination rights are subject to [Conditions, e.g., payment of penalty, notice period]. Holding over after the expiration date requires a new lease agreement.

5. Rent:

Option A: The base rent shall be [Dollar Amount] per month, payable in advance on the first day of each month, commencing on [Commencement Date].

Option B: The base rent shall be paid by [Payment Method, e.g., Check, Electronic Transfer] to [Payment Address]. A late payment penalty of [Percentage]% will be assessed on any rent not received within [Number] days of the due date.

Option C: In addition to the base rent, Tenant shall be responsible for [Property Taxes, Business Taxes, Common Area Maintenance (CAM), and Utilities], as specified in Exhibit B. Rent escalation shall be [Escalation Formula, Percentage, or Fixed Amount] annually, in accordance with Maryland law.

6. Tenant Improvements:

Option A: Landlord shall provide a tenant improvement allowance of [Dollar Amount], to be used for build-out of the Premises.

Option B: The scope of tenant improvements includes [Kitchen and Cooking Equipment, Food Safety Fixtures, HVAC, Fire Suppression/Ventilation, ADA Compliance, and Code-compliant Grease Traps, Hoods, and Fire Safety Systems], as detailed in Exhibit C.

Option C: All improvements require Landlord’s prior written approval of plans, specifications, and contractors.

7. Repair and Maintenance:

Option A: Landlord shall be responsible for maintaining the structural integrity of the building, including the roof, foundation, and exterior walls.

Option B: Tenant shall be responsible for maintaining the interior of the Premises, including all fixtures, equipment, and plumbing, as well as pest and vermin management.

Option C: Landlord is responsible for [Landlord Responsibilities], and Tenant is responsible for [Tenant Responsibilities], in accordance with Maryland health and safety regulations.

8. Cleaning, Sanitation and Waste Disposal:

Option A: Tenant shall maintain the Premises in a clean and sanitary condition, complying with all Maryland restaurant and environmental regulations.

Option B: Tenant is responsible for proper grease trap maintenance, dumpster management, and regular trash and recycling disposal.

Option C: Pest control shall be provided by [Party Responsible, Landlord or Tenant] and conducted on a [Frequency, e.g., monthly, quarterly] basis.

9. Insurance:

Option A: Tenant shall maintain property, fire, and commercial general liability insurance, naming Landlord as an additional insured, with minimum coverage of [Dollar Amount]. Liquor liability insurance is required if applicable.

Option B: Tenant is highly recommended to maintain business interruption insurance relevant to Maryland restaurant operations.

Option C: Proof of insurance shall be provided to Landlord annually, in compliance with relevant Maryland insurance laws.

10. Assignment and Subletting:

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

Option B: Any assignment or subletting must comply with Maryland law and maintain the restaurant use restrictions specified in this Lease.

Option C: Tenant remains responsible for all obligations under this lease, regardless of any assignment or subletting.

11. Landlord Access:

Option A: Landlord shall have the right to access the Premises for routine inspection, repairs, and emergencies, providing reasonable notice to Tenant, except in cases of emergency.

Option B: Landlord will schedule access to minimize disruption to Tenant’s business operations.

Option C: Landlord shall respect the confidentiality of Tenant's operational information.

12. Signage:

Option A: Tenant shall have the right to install signage, subject to Landlord’s prior written approval and compliance with all applicable Maryland and local sign ordinances.

Option B: Signage must be removed upon termination of the Lease, and the Premises restored to its original condition.

Option C: Signage, promotional materials, and exterior branding require landlord and government approval.

13. Fixtures and Equipment:

Option A: Tenant shall be responsible for the installation and maintenance of all restaurant fixtures and equipment.

Option B: Trade fixtures shall remain the property of the Tenant upon termination of the Lease.

Option C: Tenant is obligated to restore or leave behind specific items as mutually agreed upon by both parties, and will restore or leave behind certain items by mutual agreement.

14. Emergency/Eminent Domain/Condemnation and Casualty:

Option A: In the event of an emergency, eminent domain, condemnation, or casualty, procedures shall be governed by Maryland statutes.

Option B: Rent abatement or termination processes shall be in accordance with Maryland law.

Option C: Mutual notification procedures are required for reportable events (fire, health closure, utility disruption).

15. Compliance Reviews:

Option A: Tenant agrees to participate in regular compliance reviews conducted by governmental or landlord representatives.

Option B: Tenant shall provide documentation of ongoing certification renewals, Health Department inspection outcomes, and remediation plans.

Option C: Tenant shall cooperate with government or public health officials regarding inspections, remediation plans, and other compliance matters.

16. Labor, Wage, Liquor, and Food Service Regulations:

Option A: Tenant shall comply with all applicable Maryland labor, wage, liquor, and food service regulations for business conducted on the Premises.

Option B: Tenant is responsible for any violations of these regulations.

Option C: Tenant is responsible for ensuring staff is properly trained and licensed to serve alcohol.

17. Taxes:

Option A: Tenant is responsible for local tax payment allocations, including Maryland personal property, sales/use, and restaurant-specific taxes or fees.

Option B: Tenant is responsible for false sales tax remittance and amusement tax, if relevant.

Option C: Landlord and tenant will mutually agree on any new taxes that may arise during the lease.

18. Move-In/Move-Out:

Option A: A pre-occupancy inspection will be conducted prior to Tenant taking possession of the Premises. Landlord will deliver vacant possession of the Premises.

Option B: Upon termination of the Lease, Tenant shall restore the Premises, remove all branding, and remove all tenant assets, kitchen equipment, and food inventory.

Option C: Tenant is responsible for completing a punch list and a final inspection prior to vacating.

19. Dispute Resolution:

Option A: Any disputes arising under this Lease shall be resolved through good faith negotiation, followed by mediation, and, if necessary, binding arbitration in [County Name] County, Maryland.

Option B: Remedies for lease violations and default and cure rights shall be governed by Maryland law.

Option C: Both parties agree to venue in Maryland.

20. General Provisions:

Option A: This Lease shall be governed by and construed in accordance with the laws of the State of Maryland.

Option B: This Lease constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.

Option C: All notices required or permitted under this Lease shall be in writing and delivered by certified mail, return receipt requested, to the addresses set forth above.

21. Restaurant Specific Customizations:

Option A: Tenant will ensure minimal noise and smell impacting nearby tenants.

Option B: Hours of operation, music and entertainment parameters, and compliance with alcohol service training and dram shop liability must comply with local regulations.

Option C: Parking for patrons and staff, delivery driver/staff access, and neighbor relations, should be managed in a way that does not negatively impact the other tenants.

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

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[Landlord Name]

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[Tenant Name]