Montana restaurant lease agreement template

Montana Restaurant Lease Agreement

This Montana Restaurant Lease Agreement (the "Agreement") 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], residing at [Tenant Address], hereinafter referred to as "Tenant."

Landlord's Legal Entity Type:

• Option A: Individual
• Option B: Corporation
• Option C: Limited Liability Company

Tenant's Legal Entity Type:

• Option A: Individual
• Option B: Corporation
• Option C: Limited Liability Company

Premises

• The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises (the "Premises") located at [Property Address], [County] County, Montana, legally described as [Legal Description].
• The Premises consist of approximately [Square Footage] square feet, including the following areas: [List Specific Areas - e.g., Dining Room, Kitchen, Storage, Restrooms, Outdoor Seating, Drive-Through, Bar Area, Patio], and access to the shared/common areas of the property, including [Specific Shared Areas - e.g., Parking Lot].

Permitted Use

• The Premises shall be used and occupied solely for the purpose of operating a restaurant, food and beverage service establishment, and activities directly related thereto, compliant with all Montana state and local health, food safety, sanitation, and liquor licensing laws.
• Permitted Ancillary Uses:
  • Option A: Catering
  • Option B: Takeout
  • Option C: Entertainment
  • Option D: No Ancillary Uses Allowed
• The Tenant shall not use the Premises for any illegal purpose, nuisance, or unrelated commercial use.

Landlord Representations

• The Landlord represents and warrants that the Premises are suitable for restaurant operation, including but not limited to:
  • Adequate ventilation
  • Necessary grease traps and hood systems
  • Adequate gas and electrical capacity
  • Functional fire suppression systems
  • ADA accessibility
  • Health Department code compliance
• Landlord will contribute [Dollar Amount or Description] toward required buildouts.

Lease Term

• The term of this Lease shall commence on [Start Date] and shall expire on [End Date], unless sooner terminated as herein provided.
• Renewal Options:
  • Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration] 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 B: No Renewal Option.
• Early Termination: Conditions for early termination by tenant are [Conditions].
• Right of First Refusal: Tenant shall have the right of first refusal to purchase or lease the Premises upon the same terms and conditions as any bona fide offer received by Landlord.
• Exclusivity:
  • Option A: Landlord shall not lease any other space in the property to a competing food business during the term of this Lease.
  • Option B: No Exclusivity.

Rent

• Base Rent: The Tenant shall pay Landlord a base rent of [Dollar Amount] per [Month/Year].
• Rent Calculation Method:
  • Option A: Gross Lease.
  • Option B: Net Lease (NNN). Tenant shall also pay for [Property Taxes], [Insurance Costs], and [Common Area Maintenance (CAM)].
  • Option C: Percentage of Gross Sales. Tenant shall pay [Percentage]% of gross sales in addition to/instead of (choose one) the base rent.
• Security Deposit: Tenant shall deposit with Landlord a security deposit of [Dollar Amount], which may be used to cover damages to the Premises or unpaid rent.
• Rent Abatement: [Describe any conditions for rent abatement, e.g., during build-out period].
• Rent Escalation: The base rent shall increase by [Percentage]% on [Date/Frequency].
• CPI Adjustment: The base rent shall be adjusted annually based on the Consumer Price Index (CPI).
• Payment Method: Rent shall be paid by [Payment Method] to [Payment Address].
• Late Fees: A late fee of [Dollar Amount] shall be charged for rent payments received more than [Number] days after the due date.
• Interest on Overdue Amounts: Overdue amounts shall accrue interest at a rate of [Percentage]% per annum.
• Additional Costs:
  • CAM: [Dollar Amount or Description]
  • Utilities: Tenant is responsible for [List of Utilities].
  • Waste & Recycling: Tenant is responsible for [Dollar Amount or Description].
  • Snow Removal: [Landlord/Tenant] is responsible for snow removal.
  • Landscaping: [Landlord/Tenant] is responsible for landscaping.
  • Taxes: [Landlord/Tenant] is responsible for property taxes.
  • Insurance: [Landlord/Tenant] is responsible for building insurance. Tenant is responsible for business personal property and liability insurance.
  • Pest Control: [Landlord/Tenant] is responsible for pest control.
  • Grease Trap Maintenance: Tenant is responsible for grease trap maintenance.
  • Hood Cleaning: Tenant is responsible for hood cleaning.
  • Fire System Inspections: Tenant is responsible for fire system inspections.

Tenant Improvements

• Landlord's Contribution: Landlord shall provide a tenant improvement allowance of [Dollar Amount] for buildouts/remodeling.
• Procedures: Tenant shall submit architectural and engineering plans for Landlord's approval, subject to local building codes and pre-opening Health Department inspections.
• Permits and Licenses: Tenant shall obtain all necessary permits and licenses prior to operation.
• Restoration: At lease end, Tenant shall [Restore/Not Restore] the Premises to its original condition, removing fixtures/equipment.
• Alterations: Tenant shall not make any alterations to the Premises without Landlord's prior written consent.
• Signage: Tenant shall comply with Landlord's signage requirements, and obtain all necessary permits.

Fixtures and Equipment

• Landlord-Owned Fixtures: The following fixtures are owned by Landlord: [List Fixtures].
• Tenant-Owned Fixtures: The following fixtures are owned by Tenant: [List Fixtures].
• Installation and Removal: Tenant may install and remove its fixtures, subject to Landlord's approval.
• Relocation/Salvage Rights: Tenant shall have the right to relocate or salvage its major restaurant improvements.

Repair, Maintenance, and Cleaning

• Structural: Landlord is responsible for structural repairs and maintenance.
• Nonstructural: Tenant is responsible for nonstructural repairs and maintenance.
• Food Service Equipment: Tenant is responsible for maintenance of food service equipment.
• Preventative Maintenance Contracts: Tenant shall maintain preventative maintenance contracts for [List Equipment].
• Pest Control: Tenant is responsible for pest control.
• Sewer Lines: [Landlord/Tenant] is responsible for sewer line maintenance.
• Grease Management: Tenant is responsible for grease management, in compliance with local and state regulations.

Permits and Licenses

• Tenant shall obtain and maintain all necessary business, food service, liquor (if applicable), health, and city/county operational permits, in compliance with Montana Department of Public Health and Human Services standards.
• Inspections: Landlord shall have the right to inspect the Premises for compliance with permits and licenses.
• Cure Rights: In the event of Tenant compliance failures, Landlord may cure the deficiency and charge the Tenant for the costs incurred.

Insurance

• Tenant shall maintain liability insurance with minimum limits of [Dollar Amount], naming Landlord as additional insured.
  • Tenant shall obtain liquor liability insurance if serving alcohol.
  • Tenant shall obtain foodborne illness coverage.
• Landlord shall maintain building casualty insurance.

Property Damage

• Tenant shall report any property damage from kitchen operations, grease fires, water leaks, or related hazards to Landlord immediately.
• [Landlord/Tenant] shall restore or repair the Premises.
• Rent Abatement/Termination: [Specify conditions for rent abatement or termination based on the scope of damage].

Rules and Regulations

• Tenant shall comply with all rules and regulations regarding noise, hours of operation, waste removal, exhaust emissions, customer parking, and use of exterior areas.
  • Waste Removal: Tenant must comply with local solid waste and oil disposal regulations.

Liquor Licenses & Permits

• [Landlord/Tenant] is responsible for obtaining and renewing liquor licenses.
• [Landlord/Tenant] is responsible for obtaining and renewing gaming licenses, entertainment/special permits.
• Termination: This Lease may be terminated if licenses cannot be obtained or renewed.

Montana Law

• This Lease is governed by the laws of the State of Montana.
• Written notice of lease defaults shall be provided as required by Montana Code Annotated 70-24 and 70-26.
• Landlord self-help and lockouts are prohibited.
• Eviction or lease forfeiture shall be compliant with Montana law.

Assignment and Subleasing

• Tenant shall not assign or sublease the Premises without Landlord's prior written consent.
• Landlord shall not unreasonably withhold consent.
• Landlord shall have recapture rights.

Franchise/Branded Requirements

• Tenant shall comply with all franchise or nationally-branded restaurant requirements, including signage, menu board placement, and drive-through lane alterations.

Sales Reporting and Audit

• If rent is tied to gross receipts, Tenant shall provide monthly sales reports to Landlord.
• Landlord shall have the right to audit Tenant's sales records.
• Gross receipts shall exclude tips, taxes, and third-party delivery fees.

Dispute Resolution

• Any disputes arising under this Lease shall be resolved through negotiation, mediation, arbitration, or litigation in [County] County, Montana.

Security Deposit

• The security deposit shall be handled and used in compliance with Montana law.
• Landlord shall provide a written statement of deductions within [Number] days after lease termination.

Surrender

• Upon lease termination, Tenant shall surrender the Premises in clean and good condition, removing all inventory and perishables, and handing over keys/access cards.
• Tenant must cater to an environmental health signoff.

Montana Compliance

• Tenant shall comply with all applicable Montana statutes, regulations, and local ordinances for fire safety, health, employment, liquor sales, and sales/use tax remittance.
• Snow/ice maintenance obligations: [Landlord/Tenant].

Landlord Monitoring & Cooperation

• Landlord may monitor Tenant's compliance with this Lease and all applicable laws and regulations.
• Tenant shall cooperate with Landlord for regulatory inspections.

Default and Remedies

• In the event of Tenant default, Landlord shall have the right to pursue all available remedies under Montana law.
• Landlord shall provide Tenant with written notice of default and an opportunity to cure.

Notices

• All notices shall be in writing and delivered by certified mail, return receipt requested, to the addresses set forth above.

Force Majeure

• Neither party shall be liable for any failure to perform its obligations under this Lease due to force majeure, including health emergency shutdowns.

Estoppel Certificate

• Tenant shall provide Landlord with an estoppel certificate upon request.

Successors and Assigns

• This Lease shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

Entire Agreement

• This Lease constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

Amendments

• This Lease may be amended only by a written instrument signed by both parties.

Custom Business Agreements (Optional)

• Outdoor Seating Addendum: [Attach Addendum]
• Live Entertainment Rights: [Describe Rights]

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

____________________________

[Landlord Name]

Landlord

____________________________

[Tenant Name]

Tenant