New Jersey restaurant lease agreement template

New Jersey Restaurant Lease Agreement

This New Jersey Restaurant Lease Agreement (the “Lease”) 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”).

1. Premises

Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at [Property Address], New Jersey, more particularly described as [Detailed Description of Leased Space] and containing approximately [Square Footage] square feet (the “Premises”). A floor plan is attached as Exhibit A.

Option B: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, a portion of the building located at [Property Address], New Jersey, being Suite [Suite Number], consisting of [Square Footage] square feet, as outlined on Exhibit A, attached hereto. The Premises include the exclusive use of the dining area, kitchen, storage, bathrooms, and [Bar/Outdoor Seating Description, if applicable], all as depicted on Exhibit A.

2. Permitted Use

Option A: The Premises shall be used and occupied solely for the purpose of operating a restaurant, specializing in [Type of Cuisine], including the sale of food and beverages for on-premises consumption, take-out, and delivery services. This includes the right to operate a bar and serve alcoholic beverages, subject to obtaining and maintaining all necessary licenses and permits under New Jersey Alcoholic Beverage Control laws. Catering services are also permitted.

Option B: The Premises shall be used and occupied solely for the purpose of operating a [Restaurant Type, e.g., fast-casual] restaurant. Tenant shall not use the Premises for any other purpose without the prior written consent of Landlord, including, but not limited to, retail sales, office use, or any activity that is not directly related to the operation of a restaurant. Subletting or assignment of this lease is strictly prohibited without Landlord's written consent and must comply with New Jersey law.

3. Certificate of Occupancy

Option A: Landlord warrants that the Premises have a valid Certificate of Occupancy permitting their use as a restaurant and complying with all applicable New Jersey state and local municipal codes.

Option B: Tenant, at its sole cost and expense, shall obtain and maintain a valid Certificate of Occupancy required for the operation of the restaurant within [Number] days of the commencement date. If Tenant is unable to obtain the Certificate of Occupancy, Tenant may terminate this Lease, and Landlord shall return the Security Deposit.

4. Compliance with Laws

Option A: Tenant shall comply with all applicable federal, state, and local laws, ordinances, rules, and regulations, including but not limited to, the New Jersey Department of Health regulations, fire safety regulations, accessibility requirements, building codes, and ADA regulations. Tenant shall be responsible for obtaining and maintaining all necessary licenses and permits required for the operation of the restaurant, including a food establishment license, liquor license (if applicable), and health permits.

Option B: Tenant is responsible for compliance with all laws and regulations, including but not limited to, New Jersey Department of Health (NJDOH), fire safety, accessibility, building, and ADA regulations, including municipal ordinances specific to food service establishments. Tenant is solely responsible for all grease traps, hood/exhaust systems, fire suppression systems, and pest control plans meeting New Jersey code and municipal inspection standards, with maintenance and inspection responsibilities outlined in Section 10.

5. Common Areas and Parking

Option A: Tenant shall have the non-exclusive right to use the common areas of the building, including parking areas, walkways, and restrooms, subject to the rules and regulations established by Landlord. Landlord shall maintain the common areas in a clean and safe condition.

Option B: Tenant shall have the right to use [Number] parking spaces for employees and customers. Tenant shall also be entitled to install signage in accordance with local ordinances. Landlord shall cooperate with the Tenant in obtaining any necessary outdoor dining permits or "sidewalk café" licenses as per local ordinance.

6. Lease Term

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

Option B: The initial term of this Lease shall be [Number] years, commencing on [Start Date] ("Commencement Date") and expiring on [End Date] ("Expiration Date"). Tenant shall have the option to renew this Lease for one (1) additional term of [Number] years, provided that Tenant gives Landlord written notice of its intention to renew at least [Number] months prior to the Expiration Date. If Tenant remains in possession of the Premises after the Expiration Date without exercising the option to renew, such holdover tenancy shall be on a month-to-month basis and shall be subject to a rental rate equal to 150% of the then-current base rent.

Option C: Tenant shall have a Right of First Refusal on any expansion/relocation clauses that may apply to the said property.

7. Rent

Option A: The base rent for the Premises shall be [Dollar Amount] per month, payable in advance on the first day of each month, commencing on [Start Date], to Landlord at [Payment Address].

Option B: In addition to the base rent, Tenant shall pay percentage rent equal to [Percentage]% of Tenant's gross sales exceeding [Dollar Amount] in any calendar year. Tenant shall provide Landlord with monthly sales reports and an annual certified audit.

Option C: Tenant shall also pay Common Area Maintenance (CAM) fees, real estate taxes, property insurance, and municipal/utility surcharges, as detailed in Exhibit B, attached hereto. All payments shall be made to Landlord at [Payment Address] on or before the first day of each month. Late payments shall be subject to a late fee of [Dollar Amount], as permitted under New Jersey law.

Option D: The base rent will increase by [Percentage]% per year on the anniversary of the commencement date. The rental amount will be adjusted in accordance with the Consumer Price Index (CPI).

8. Security Deposit

Option A: Tenant shall deposit with Landlord a security deposit of [Dollar Amount], to be held by Landlord as security for the performance of Tenant’s obligations under this Lease. The security deposit shall be held in accordance with N.J.S.A. 46:8-19 et seq., and Landlord shall provide Tenant with the required disclosures.

Option B: The security deposit shall be returned to Tenant within thirty (30) days after the termination of this Lease, less any amounts necessary to cover damages to the Premises or unpaid rent. Landlord shall provide an itemized list of deductions. Landlord is required to comply with all security deposit accounting and return requirements under N.J.S.A. 46:8-19.

9. Exclusive Use

Option A: Landlord agrees not to lease any other space in the building to a restaurant offering the same type of cuisine as Tenant’s restaurant within a [Radius] mile radius.

Option B: Tenant shall operate its restaurant during the hours of [Start Time] to [End Time], [Days of the Week]. Tenant must remain open and operating ("go dark"/operating requirements) and must follow requirements for the hours and days of operation.

10. Tenant Improvements

Option A: Tenant shall be responsible for all tenant improvements to the Premises, including construction and remodeling, subject to Landlord’s prior written approval. Tenant shall obtain all necessary permits and approvals from the municipal building department and health department. All improvements must comply with ADA requirements.

Option B: Prior to commencing any work, Tenant shall submit plans and specifications to Landlord for approval. Landlord’s approval shall not be unreasonably withheld. Tenant shall be responsible for all costs associated with the improvements. Tenant shall restore the Premises to its original condition at the expiration of the Lease, unless otherwise agreed in writing.

11. Maintenance and Repairs

Option A: Landlord shall be responsible for maintaining the structural components of the building, including the roof, foundation, and exterior walls. Tenant shall be responsible for maintaining the interior of the Premises, including the fixtures, equipment, and appliances.

Option B: Tenant is fully responsible for routine maintenance, repairs, and replacement of all restaurant-specific equipment, pest/rodent control, and HVAC/ventilation upkeep. Tenant shall regularly report any property or system malfunctions to Landlord immediately in writing.

Option C: Grease traps, hood/exhaust systems, and fire suppression systems must be maintained according to New Jersey Code and municipal inspection standards. Tenant shall maintain a pest/rodent control service contract that is compliant with local Board of Health regulations.

12. Waste Disposal

Option A: Tenant shall be responsible for the proper disposal of all waste and refuse generated from the Premises, including grease and oil. Tenant shall comply with all local sanitation requirements.

Option B: Landlord will designate a specific trash enclosure for tenant use. All local sanitation/truck access requirements must be met for the delivery and waste disposal procedures.

13. Insurance

Option A: Tenant shall maintain commercial general liability insurance with limits of not less than [Dollar Amount] per occurrence and property and contents insurance with limits sufficient to cover the replacement cost of Tenant’s personal property. Tenant shall also maintain liquor liability coverage if applicable. Landlord shall be named as an additional insured on Tenant's liability policy.

Option B: Landlord shall maintain property/casualty insurance on the building. Tenant must provide proof of insurance to the Landlord upon execution of the lease and annually thereafter. All coverage amounts are aligned to local industry standards and named insureds including Landlord.

14. Casualty and Condemnation

Option A: If the Premises are damaged by fire or other casualty, the rent shall abate during the period of restoration. If the Premises are rendered untenantable, Tenant may terminate this Lease.

Option B: In case of a condemnation of the Premises, this Lease shall terminate. Any award shall be allocated between Landlord and Tenant in proportion to their respective interests. This clause aligns with fire and casualty events, including business interruption provisions, abatement of rent, repair periods, and tenant rights to terminate/withhold rent according to New Jersey law.

15. Licenses and Permits

Option A: Tenant shall obtain, display, and maintain all necessary restaurant licenses and permits, including a food establishment license, liquor license (if applicable), health permits, and signage permits. Tenant shall promptly notify Landlord of any violations or citation notices.

Option B: Tenant shall maintain all necessary licenses, including food establishment, liquor license (if applicable, with explicit compliance to New Jersey Alcoholic Beverage Control laws and restrictions on assignment), health permits, and any local signage or sidewalk permits. Tenant shall also provide Landlord with copies of the required business registrations (New Jersey Business Registration Certificate, Sales Tax Certificate) and confirmation of tenant responsibility for all required state/local restaurant and sales/use taxes.

16. Default and Remedies

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, including eviction, subject to the New Jersey Anti-Eviction Act, as applicable.

Option B: If Landlord fails to perform its obligations under this Lease, Tenant shall have the right to pursue all available remedies, including injunctive relief and damages. Any initiation of summary dispossess proceedings will comply with the New Jersey Anti-Eviction Act.

17. Move-In and Move-Out

Option A: Landlord shall deliver the keys to the Premises to Tenant on the Commencement Date. Tenant shall conduct a walk-through inspection of the Premises and provide Landlord with a punch list of any deficiencies within [Number] days.

Option B: Upon termination of this Lease, Tenant shall remove all personal property and fixtures from the Premises and restore the Premises to its original condition, reasonable wear and tear excepted. The Premises shall be left clean and free of debris, with all grease/vent systems professionally cleaned to standard.

18. Taxes and Assessments

Option A: Landlord shall be responsible for the payment of all real estate taxes and assessments on the building.

Option B: Tenant shall be responsible for all personal property taxes assessed on Tenant’s equipment and fixtures. Allocation of responsibilities for property taxes, assessments, and any special district or business improvement district fees imposed by New Jersey or local government are outlined in Exhibit B.

19. Signage

Option A: Tenant shall have the right to install signage on the exterior of the building, subject to Landlord’s prior written approval and compliance with all municipal sign ordinances.

Option B: The specifics for signage installation, design approval, and compliance with municipal sign ordinances are detailed in Exhibit C. Landlord/tenant signage rights in the event of temporary closure or property maintenance are provided in Exhibit C.

20. Indemnification

Option A: Tenant shall indemnify and hold Landlord harmless from any and all claims, damages, and liabilities arising out of Tenant’s use of the Premises.

Option B: A waiver of subrogation clause is attached as Exhibit D, to this agreement, with full compliance under New Jersey's Environmental Cleanup Responsibility Act (if applicable based on property history)

21. Subleasing and Assignment

Option A: Tenant shall not sublease the Premises or assign this Lease without the prior written consent of Landlord.

Option B: Tenant shall have the right to sell the business subject to Landlord's right of first refusal. All of these terms are according to New Jersey ABC regulations. Subleasing, assignment, or sale of the business (including right of first refusal, required notices, and assignment of liquor licenses) must strictly comply with New Jersey ABC regulations.

22. Dispute Resolution

Option A: Any dispute arising out of or relating to this Lease shall be resolved through negotiation, mediation, or binding arbitration in [County Name] County, New Jersey.

Option B: Venue and choice of law are set exclusively in New Jersey state courts.

23. Governing Law

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

Option B: This agreement will be interpreted under New Jersey law, referencing relevant state statutes/regulations for property leasing, tax, fire safety, and commercial food operations.

24. Addenda

Option A: The following addenda are attached to and incorporated into this Lease:

Exhibit A: Floor Plan

Exhibit B: CAM and Tax Allocation

Exhibit C: Signage Requirements

Exhibit D: Waiver of Subrogation Clause

Exhibit E: Equipment Inventory

Option B: Any other addenda as needed (e.g., equipment inventories, asset lists, compliance certificates, design approvals) can be attached to the document

25. HVAC/Ventilation & Kitchen Systems

Option A: Tenant is responsible for regular HVAC/ventilation and kitchen system cleaning as per New Jersey fire code and insurance rules.

Option B: Any required building inspections, annual health/safety/fire re-inspections, and responsibilities for any resulting upgrades or repairs will be the responsibility of the Tenant.

26. ADA Compliance

Option A: Tenant is responsible for ADA and parallel New Jersey Law Against Discrimination (NJLAD) accessibility standards for the Premises.

Option B: ADA accessibility standards for front-of-house, bathrooms, and egress, with responsibility for compliance explicitly assigned to the Tenant, are detailed in Exhibit F.

27. Utilities

Option A: Tenant shall be responsible for all utility costs associated with the Premises, including electricity, gas, water, and sewer.

Option B: Permitted utility installations (e.g., gas, three-phase power, water/sewer upgrades) relevant to restaurant operations, city utility tap/connection requirements, metering, and cost allocations are detailed in Exhibit G.

28. Entire Agreement

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

Option B: This agreement constitutes the entire understanding, with amendment procedures and integration clauses as required for New Jersey commercial contracts. This document is effective as of [date].

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

Landlord:

____________________________

[Landlord Name]

[Landlord Address]

[Landlord Phone]

[Landlord Email]

Tenant:

____________________________

[Tenant Name]

[Tenant Address]

[Tenant Phone]

[Tenant Email]