North Carolina restaurant lease agreement template

North Carolina Restaurant Lease Agreement

This North Carolina Restaurant Lease Agreement ("Agreement") 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"). If either party is a business entity, include the type of entity (e.g., LLC, Corporation) and state of formation.

1. Leased Premises

Option A: The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, those certain premises (the "Premises") located at [Property Address], consisting of approximately [Square Footage] square feet as depicted on [Floor Plan Description/Attachment].

Option B: The Premises shall include exclusive use of the following: Kitchen Area, Bar Area, Dining Room Seating for [Number] patrons, [Number] Exclusive Parking Spaces. It also includes shared use of the following: ADA-Compliant Restrooms, Delivery Access, Trash/Recycling Zones.

Option C: The Premises do not include access to any outdoor seating or patio areas.

2. Permitted Use

Option A: The Premises shall be used and occupied solely for the purpose of operating a restaurant and food and beverage service establishment.

Option B: The Tenant shall not use the Premises for any other purpose without the prior written consent of the Landlord, which consent may be withheld in Landlord’s sole discretion.

Option C: The Tenant shall comply with all applicable zoning regulations, noise ordinances, and North Carolina health and sanitation regulations in the operation of the restaurant.

Option D: The Tenant must maintain all licenses, permits, and approvals required to operate the restaurant lawfully under North Carolina law.

Sub Option 1: Tenant shall not operate hours outside of [List Hours].

Sub Option 2: Tenant shall ensure all signage complies with [City/County] regulations.

3. Lease Term

Option A: The term of this Lease shall commence on [Start Date] and shall end on [End Date], unless sooner terminated as provided herein (the "Term").

Option B: The Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration of Renewal Term] each.

Option C: To exercise the option to renew, the Tenant must give the Landlord written notice of its intention to renew at least [Number] days prior to the expiration of the then-current Term.

Option D: Early Termination: [State Conditions for Early Termination and Penalties, if Any].

4. Rent

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

Option B: In addition to the base rent, the Tenant shall pay to the Landlord percentage rent equal to [Percentage]% of the Tenant’s gross sales exceeding [Dollar Amount] in any calendar year.

Option C: A security deposit of [Dollar Amount] is required and shall be held by the landlord according to North Carolina law.

Option D: Rent shall be escalated/increased as follows: [Describe Escalation/Increase Schedule].

Option E: All payments shall be made to [Payment Details].

Option F: Late payment fees of [Dollar Amount or Percentage] will be applied if payment is received after the [Day] day of the month.

5. Operating Expenses

Option A: The Tenant shall be responsible for the following operating expenses: Utilities (water, gas, electricity), Garbage removal, Grease removal.

Option B: The Landlord shall be responsible for the following operating expenses: Property taxes, Property insurance.

Option C: The Tenant shall pay its pro rata share of common area maintenance (CAM) fees, which shall be calculated as [Calculation Method]. The current estimated CAM fee is [Dollar Amount] per month.

Option D: [Specify Responsibility for Special North Carolina Food Service Privilege Tax or Other Local Restaurant Taxes].

6. Build-Out and Improvements

Option A: Tenant Improvements: [Describe Responsibility and Approval Process for Tenant Build-Out and Improvements].

Option B: The Premises shall be delivered to the Tenant in [Vanilla Shell/Gray Shell/Turnkey Condition].

Option C: All plans for build-out and improvements must be approved by the Landlord in writing prior to commencement of work.

Option D: All build-out and improvements must comply with all applicable building codes, fire codes, health codes, and other regulations, including North Carolina fire, health, and food service standards.

Option E: [Specify Requirements to Restore Premises at Lease End].

7. Repair and Maintenance

Option A: The Landlord shall be responsible for maintaining the structure, roof, and exterior of the Premises.

Option B: The Tenant shall be responsible for maintaining the interior of the Premises, including but not limited to plumbing, HVAC (including grease exhaust/ventilation cleaning), kitchen equipment, and pest/rodent prevention as required by North Carolina health code.

Option C: The Tenant is responsible for maintaining the grease trap and ensuring proper disposal of grease in compliance with all applicable regulations.

Option D: [Specify Responsibility for Periodic Health/Safety Inspections].

8. Insurance

Option A: The Tenant shall maintain commercial general liability insurance with a minimum limit of [Dollar Amount] per occurrence.

Option B: The Tenant shall also maintain property insurance, business interruption insurance, product liability insurance, and liquor liability insurance (if applicable).

Option C: The Landlord shall be named as an additional insured on the Tenant’s commercial general liability insurance policy.

Option D: The Tenant shall provide the Landlord with certificates of insurance evidencing the required coverage.

Option E: Workers' Compensation insurance shall be carried out by the tenant as required by North Carolina law.

9. Licenses and Permits

Option A: The Tenant shall be solely responsible for obtaining and maintaining all required government licenses, food service permits, alcohol licenses, and fire/safety certificates.

Option B: The Tenant shall immediately notify the Landlord of any loss or suspension of any required license or permit.

Option C: The Tenant represents and warrants that it will operate the restaurant in compliance with all applicable North Carolina regulations and local ordinances.

10. Compliance

Option A: The Tenant shall comply with all applicable laws, regulations, and ordinances, including but not limited to the Americans with Disabilities Act (ADA), OSHA food service standards, state and local fire/building codes, and North Carolina Department of Health and Human Services restaurant licensing requirements.

Option B: Tenant must comply with all state and local tax collection and reporting requirements.

11. Signage and Exterior Alterations

Option A: The Tenant shall have the right to install signage on the Premises, subject to the Landlord’s prior written approval and compliance with all applicable zoning regulations and sign ordinances.

Option B: All exterior alterations must be approved by the Landlord in writing.

Option C: [Specify Restrictions on Noise, Odors, Delivery Protocols, Outside Seating, and Valet/Shared Parking Arrangements].

12. Move-In and Return of Premises

Option A: The Landlord shall deliver possession of the Premises to the Tenant on the commencement date of the Term.

Option B: Upon termination of this Lease, the Tenant shall surrender the Premises to the Landlord in the same condition as received, ordinary wear and tear excepted.

Option C: The Tenant shall remove all of its personal property and trade fixtures from the Premises.

Option D: Tenant is responsible for cleaning the grease and waste system prior to vacating the premises.

Option E: [Specify Procedures for Removal or Retention of Restaurant Equipment and Trade Fixtures].

13. Default and Remedies

Option A: If the Tenant fails to pay rent when due or otherwise breaches this Lease, the Landlord shall have the right to terminate this Lease and re-enter the Premises.

Option B: The Tenant shall have a cure period of [Number] days to remedy any default after written notice from the Landlord.

Option C: [Specify Landlord’s Remedies for Default, including Right to Re-Enter and Terminate the Lease].

Option D: [Specify Tenant Protections for Non-Performance Resulting from Force Majeure, Changes in Local Health Code, or Condemnation/Eminent Domain Proceedings].

14. Dispute Resolution

Option A: Any dispute arising out of or relating to this Lease shall be resolved through negotiation, mediation, and arbitration before litigation.

Option B: The venue for any legal action shall be in the state courts of North Carolina, [Specific County] County.

Option C: This Lease shall be governed by and construed in accordance with the laws of the State of North Carolina.

15. Notices

Option A: 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.

16. Entire Agreement

Option A: This Lease constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

17. Modification

Option A: This Lease may be modified only by a written instrument signed by both parties.

18. Governing Law

Option A: This agreement shall be governed by the laws of North Carolina.

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

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[Landlord Name]

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[Tenant Name]