Minnesota restaurant lease agreement template

Minnesota Restaurant Lease Agreement

This Restaurant Lease Agreement (this "Lease") is made and effective as of [Effective Date], by and between [Landlord Name], a [Landlord Entity Type] with its principal place of business at [Landlord Address] ("Landlord"), and [Tenant Name], a [Tenant Entity Type] with its principal place of business at [Tenant Address] ("Tenant").

RECITALS

WHEREAS, Landlord owns certain real property located in the State of Minnesota, commonly known as [Property Address] (the "Property"); and

WHEREAS, Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord, a portion of the Property for the operation of a restaurant, under the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

Premises

• Option A: The Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at [Suite/Unit Number] of the Property (the "Premises"), containing approximately [Square Footage] square feet, as depicted on Exhibit A attached hereto.
• Option B: The Premises includes the following designated areas: dining area, kitchen, storage, restrooms, and [Describe outdoor seating, parking, delivery areas].

Use

• Option A: The Premises shall be used solely for the operation of a [Specific Cuisine/Concept] restaurant, providing [Type of Service: Full Service, Quick Service, Bar, Takeout] service.
• Option B: Prohibited uses include, but are not limited to, nightclub, adult entertainment, and food production for offsite catering. Tenant must comply with all Minnesota statutes, St. Paul/Minneapolis local ordinances, zoning restrictions, ADA access requirements, and Minnesota Department of Health and Department of Agriculture regulations for foodservice. Failure to maintain necessary licenses and health permits constitutes a material breach.

Term

• Option A: The term of this Lease shall commence on [Commencement Date] and expire on [Expiration Date], unless sooner terminated as provided herein.
• Option B: Tenant shall have [Number] option(s) to renew this Lease for a term of [Renewal Term Length] years each, provided Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the expiration of the then-current term.
• Option C: Tenant shall have right of first refusal to lease additional space if such space becomes available.
• Option D: Tenant may terminate early for failure to obtain liquor or food licenses, or catastrophic equipment failure.

Rent

• Option A: Tenant shall pay Landlord a base rent of [Dollar Amount] per month, payable in advance on the [Day] day of each month, commencing on the Commencement Date.
• Option B: In addition to the base rent, Tenant shall pay Landlord percentage rent equal to [Percentage]% of Tenant’s gross sales exceeding [Dollar Amount] per year.
• Option C: Tenant shall pay a security deposit of [Dollar Amount], which shall be returned to Tenant within [Number] days after the expiration or termination of this Lease, less any deductions for damages or unpaid rent.
• Option D: Rent shall escalate [Percentage]% annually or according to the Consumer Price Index.

Taxes, Insurance, and CAM

• Option A: This Lease is a triple-net (NNN) lease. Tenant shall pay all property taxes, insurance, and common area maintenance (CAM) fees associated with the Premises.
• Option B: Tenant’s pro rata share of property taxes is [Percentage]%. Landlord shall provide Tenant with a statement of actual taxes due. CAM fees will be charged to tenant and the calculation method is [Specify Calculation Method].

Buildout/Fit-Out

• Option A: Tenant is responsible for all buildout and fit-out costs of the Premises.
• Option B: Tenant shall submit construction plans to Landlord for approval prior to commencing any work. All work must comply with the Minnesota Building Code and fire code. Tenant is responsible for all Minnesota-mandated inspections.

Liquor License

• Option A: Tenant shall be responsible for obtaining and maintaining all necessary liquor licenses.
• Option B: Landlord shall cooperate with Tenant in obtaining a liquor license. Tenant shall indemnify Landlord for any liquor liability.

Utilities and Waste

• Option A: Tenant shall be responsible for all utilities serving the Premises.
• Option B: Tenant shall comply with all regulations regarding exhaust ventilation, HVAC, trash/grease management, pest control, and food waste disposal.

Insurance

• Option A: Tenant shall maintain general liability insurance, property insurance, workers’ compensation insurance (as required by Minnesota law), food contamination coverage, and liquor liability insurance (if applicable).
• Option B: Landlord shall be named as an additional insured on all policies. Minimum coverage amounts shall comply with Minnesota standards.

Maintenance and Repair

• Option A: Tenant is responsible for day-to-day repairs, maintenance, and replacement of restaurant-specific fixtures (kitchen equipment, hoods, grease traps, plumbing, walk-ins).
• Option B: Landlord is responsible for the building structure, roof, exterior, and systems, unless damage is caused by Tenant's negligence.

Alterations and Improvements

• Option A: Tenant may make alterations and improvements to the Premises with Landlord’s prior written consent, which shall not be unreasonably withheld.
• Option B: All alterations and improvements shall comply with Minnesota code-compliant improvements. Tenant shall restore the Premises to its original condition at the expiration or termination of this Lease, less normal wear and tear.

Assignment and Subletting

• Option A: Tenant shall not assign this Lease or sublet the Premises without Landlord’s prior written consent.
• Option B: Landlord’s consent shall not be unreasonably withheld, in accordance with Minnesota law.

Compliance with Laws

• Option A: Tenant shall comply with all applicable laws, ordinances, rules, and regulations, including but not limited to health and safety codes, ADA requirements, and environmental regulations.
• Option B: Tenant is responsible for regular pest control and sanitary conditions as mandated by Minnesota rules.

Default

• Option A: If Tenant fails to pay rent or otherwise breaches this Lease, Landlord shall have the right to terminate this Lease and pursue all available remedies under Minnesota law.
• Option B: Landlord shall provide Tenant with written notice of any default and a [Number]-day opportunity to cure.

Casualty and Condemnation

• Option A: If the Premises are damaged by fire or other casualty, this Lease shall terminate unless Landlord elects to repair the Premises within a reasonable time.
• Option B: Rent shall abate during the period of repair.

Condemnation

• Option A: If the Property or any part thereof is taken by eminent domain, this Lease shall terminate.

Governing Law

• Option A: This Lease shall be governed by and construed in accordance with the laws of the State of Minnesota.
• Option B: Venue for any dispute arising under this Lease shall be in [County Name] County, Minnesota.

Move-In/Move-Out

• Option A: Tenant shall conduct a move-in/move-out checklist with Landlord prior to occupancy and upon vacating the Premises.
• Option B: The checklist shall include cleaning, kitchen equipment removal, grease trap cleaning, and restoration obligations.

Environmental

• Option A: Tenant shall comply with all applicable environmental laws and regulations, including Minnesota Pollution Control Agency regulations.
• Option B: Tenant shall be responsible for the proper disposal of kitchen waste and hazardous materials.

ADA Compliance

• Option A: Tenant shall ensure that the Premises are in compliance with the Americans with Disabilities Act (ADA) and the Minnesota Human Rights Act.

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

[Landlord Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title]

[Tenant Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title]