Massachusetts restaurant lease agreement template

Massachusetts Restaurant Lease Agreement

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

• [Landlord Name], a [Landlord Entity Type, e.g., Individual, Corporation, LLC], residing at [Landlord Address] (“Landlord”), and
• [Tenant Name], a [Tenant Entity Type, e.g., Individual, Corporation, LLC], with its principal place of business at [Tenant Business Address], and if a corporation or LLC, registered with the Commonwealth of Massachusetts and having a registered agent [Registered Agent Name] at [Registered Agent Address] ( “Tenant”). If an out-of-state entity, include Massachusetts Certificate of Authority number: [Certificate Number].

Premises

• Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at [Street Address], [City], Massachusetts [Zip Code], with Parcel ID [Parcel ID], consisting of approximately [Total Square Footage] square feet (the “Premises”).
• Option B: The Premises includes the following areas:
  • Dining area: [Dining Area Square Footage] square feet.
  • Kitchen space: [Kitchen Space Square Footage] square feet.
  • Storage area: [Storage Area Square Footage] square feet.
  • Restrooms: [Number] restrooms.
  • Loading zone: [Description of Loading Zone].
  • Outdoor seating area: [Description of Outdoor Seating Area, if any].
  • Designated trash disposal area: [Description of Trash Disposal Area].
  • Parking spaces: [Number] designated parking spaces and/or rights to use shared parking.
  • Utility connections: connections for electricity, water, gas, and sewer.
  • Shared/common areas: access to [List of Shared/Common Areas].

Permitted Use

• Option A: The Premises shall be used solely for the operation of a restaurant.
• Option B: The Premises shall be used solely for the operation of a [Specific Cuisine Type, e.g., Italian, Mexican] restaurant. Tenant shall not operate any other type of business on the Premises without Landlord’s prior written consent.

Tenant’s permitted hours of operation are [Hours of Operation], subject to all applicable municipal ordinances, including but not limited to those governing late-night service, outdoor seating, and alcohol sales. Tenant shall obtain and maintain all required licenses and permits, including but not limited to a food service license, liquor license (if applicable), Common Victualler License, Board of Health approvals, and Fire Department occupancy permit. Tenant shall comply with all applicable Massachusetts laws, codes, and city/town ordinances affecting restaurant operations, including but not limited to Department of Public Health regulations and Board of Fire Prevention Regulations (527 CMR). Tenant is responsible for maintaining compliance with ADA accessibility requirements.

Term

• Option A: The term of this Lease shall be for a period of [Number] years, commencing on [Commencement Date] and expiring on [Expiration Date].
• Option B: Renewal Options:
  • Tenant shall have the option to renew this Lease for [Number] additional terms of [Number] years each. To exercise each renewal option, Tenant must give Landlord written notice at least [Number] months, but no more than [Number] months, prior to the expiration of the then-current term.

Early Termination: This Lease may be terminated early only upon the following conditions: [Conditions for Early Termination, e.g., Business Closure, Loss of License, Fire, Condemnation, Public Health Order].

Rent and Security Deposit

• Option A: Base Rent: The base rent for the Premises shall be [Dollar Amount] per month, payable in advance on the first day of each month, without demand, at [Payment Address].
• Option B: Rent Escalation: The base rent shall increase annually by [Percentage]%, commencing on [Date]. OR The base rent shall be adjusted annually based on the Consumer Price Index (CPI).
• Option C: Security Deposit: Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount]. The security deposit will be held in compliance with M.G.L. c. 186 § 15B. Landlord shall pay interest on the security deposit as required by law.
• Option D: Rent Structure:
  • Triple-Net (NNN) Lease: In addition to the base rent, Tenant shall pay its proportionate share of property taxes, insurance, and common area maintenance (CAM) expenses.
  • Gross Lease: The base rent includes property taxes, insurance, and common area maintenance (CAM) expenses.

Real Estate Taxes and Sales Tax

Tenant shall be responsible for its pro rata share of real estate taxes, if applicable, including any local meal tax surcharges. Tenant is solely responsible for the collection and remittance of Massachusetts sales tax (meals tax) under M.G.L. Chapters 62C and 64H and shall comply with all applicable assessment and payment deadlines. Tenant acknowledges the possibility of M.G.L. c. 59 abatements and that the responsibility for filing lies with the property owner.

Alcohol Sales (If Applicable)

Tenant’s right to sell alcohol is subject to Landlord’s and municipal approval. Loss, suspension, or transfer of the alcohol license shall be considered a material breach of this Agreement.

Tenant Improvements and Buildout

All tenant improvements and buildout shall be subject to Landlord’s prior written approval and shall comply with all applicable laws and regulations, including Board of Health plan review, city/town permit approvals, fire and plumbing inspections, and the Massachusetts Stretch Code (as applicable). Tenant shall be responsible for obtaining all necessary permits and approvals and for ensuring that all work is performed in a good and workmanlike manner. Tenant shall be responsible for all mechanic’s liens. At the end of the lease term, Tenant shall [Restore the Premises OR Remove Improvements].

Restaurant Equipment and Maintenance

Tenant shall be responsible for the repair and maintenance of all specialized restaurant equipment, including kitchen appliances, fire suppression systems, refrigeration, walk-ins, and HVAC. Tenant shall ensure regular cleaning, inspections, and compliance with local Board of Health regulations. Tenant is responsible for exhaust hood, grease trap, venting, waste disposal, and pest control requirements.

Signage

Tenant’s signage shall be subject to Landlord’s prior written approval and shall comply with all applicable zoning ordinances and municipal permit requirements. Landlord approval required on size, design, and placement of all signs. Any temporary/window signs require prior approval.

Insurance

Tenant shall maintain the following insurance coverage:

• Commercial general liability insurance with a minimum coverage of [Dollar Amount] per occurrence.
• Liquor liability insurance (if applicable) with a minimum coverage of [Dollar Amount] per occurrence.
• Workers’ compensation insurance as required by law.
• Property casualty insurance covering the Premises.

Tenant shall name Landlord as an additional insured on its commercial general liability insurance policy and shall provide Landlord with a certificate of insurance annually.

Fire Safety and Emergency Provisions

Tenant shall comply with all applicable fire safety regulations, including maintaining code-compliant alarms, fire extinguishers, and emergency lighting. Tenant shall participate in fire drills as mandated by the local fire department.

Security Deposit

Landlord shall hold the security deposit in compliance with M.G.L. c.186 § 15B, including providing annual statements and paying interest as required by law. Deductions and return process will be in accordance with Massachusetts law.

Subleasing and Assignment

Tenant shall not sublease or assign this Lease without Landlord’s prior written consent, which shall not be unreasonably withheld, in accordance with Massachusetts law. Any proposed assignee or subtenant must meet Landlord’s reasonable standards.

Landlord’s Right of Entry

Landlord shall have the right to enter the Premises for inspection, repairs, health department walk-throughs, and municipal compliance, subject to reasonable advance notice, except in cases of emergency.

Pest Control, Health Code Violations, and Shutdowns

Tenant shall be responsible for managing pest infestations, health code violations, and foodborne illness incidents. Remediation obligations shall be allocated as follows: [Allocation of Remediation Obligations]. Non-compliance shall constitute a material breach of this Agreement.

Government-Mandated Closures and Force Majeure

In the event of government-mandated closures or force majeure events, the parties’ obligations shall be as follows: [Specific Provisions for Government Mandated Closures or Force Majeure], consistent with relevant Massachusetts court decisions and statutes.

Default and Remedies

In the event of a default by Tenant, Landlord shall have the right to pursue all remedies available under Massachusetts law, including eviction, acceleration of rent, and damages. Landlord shall have a duty to mitigate damages as required by Massachusetts law.

Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through [Negotiation, Mediation, Arbitration]. The venue for any legal action shall be exclusively in the Commonwealth of Massachusetts.

ADA Compliance

Tenant shall be responsible for complying with the Americans with Disabilities Act (ADA) and the Massachusetts Architectural Access Board (521 CMR). The costs of any required accessibility modifications shall be allocated as follows: [Allocation of ADA Compliance Costs].

Move-In, Move-Out, and Surrender

Upon expiration or termination of this Lease, Tenant shall surrender the Premises in good condition, reasonable wear and tear excepted. Tenant shall be responsible for grease trap cleaning, deep-cleaning of hoods/vents, equipment removal, and trash disposal as required by local boards. Tenant shall return all keys and security devices to Landlord.

Tenant’s Property

Tenant’s property, fixtures, and trade equipment shall be treated as follows at the end of the Lease: [Rules for Removal, Abandonment, or Fixtures That Must Remain].

Notices

All notices required or permitted under this Lease shall be in writing and shall be deemed to have been duly given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above.

Environmental Compliance

Tenant shall comply with the Massachusetts Environmental Protection Act (MEPA), grease discharge regulations, and restrictions on hazardous materials handling.

Governing Law and Compliance

This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. The lease is subject to and incorporates all relevant Massachusetts statutes, regulations, and municipal ordinances governing restaurant operations, health, safety, code, licensure, and tax.

Amendments

This Lease may be amended only by a writing signed by both Landlord and Tenant. Amendments may be required to incorporate future regulatory changes, state or town code amendments, or changes in Board of Health or Alcohol Control Commission requirements.

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

[Landlord Name]

By: [Landlord Signature]

[Tenant Name]

By: [Tenant Signature]