North Dakota restaurant lease agreement template

North Dakota Restaurant Lease Agreement

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

1. Premises

Option A: Landlord leases to Tenant, and Tenant leases from Landlord, the premises located at [Property Address], consisting of approximately [Square Footage] square feet, as depicted on [Floorplan/Site Map Reference], including the following:

• Exclusive Use Areas: [List Exclusive Use Areas]
• Shared Use Areas: [List Shared Use Areas - parking, outdoor dining, trash/recycling]

Option B: (For a portion of a larger building): Landlord leases to Tenant, and Tenant leases from Landlord, Suite [Suite Number] in the building located at [Property Address], consisting of approximately [Square Footage] square feet, as depicted on [Floorplan/Site Map Reference], including the following:

• Exclusive Use Areas: [List Exclusive Use Areas]
• Shared Use Areas: [List Shared Use Areas - parking, outdoor dining, trash/recycling]

2. Permitted Use

Option A: The Premises shall be used solely for the operation of a restaurant and food service establishment, specializing in [Cuisine Type], with a menu including [Allowed Menu Categories].

Option B: The Premises shall be used solely for the operation of a [Restaurant Type, e.g., fast food, casual dining] restaurant. Tenant shall not use the Premises for any other purpose without Landlord's prior written consent. Tenant shall not sublease the premises without Landlord's prior written consent, which will not be unreasonably withheld.

3. Compliance with Laws

Tenant shall comply with all applicable federal, state, and local laws, ordinances, and regulations, including but not limited to North Dakota commercial zoning laws, health codes (North Dakota Department of Health), fire codes (local fire marshal), building codes, ADA accessibility requirements, and liquor laws (if applicable).

Tenant is responsible for obtaining, maintaining, and displaying all necessary licenses and permits, including food service permits, alcohol licenses (if applicable), and any other required licenses. Tenant shall provide proof of ongoing health inspections to Landlord upon request.

Responsibilities for specific permits and licenses:

• Liquor License: [Landlord/Tenant Responsibility]
• Signage Permits: [Landlord/Tenant Responsibility]
• Outdoor Area Permits: [Landlord/Tenant Responsibility]

4. Lease Term

Option A: The term of this Lease shall commence on [Commencement Date] and shall expire on [Expiration Date].

Option B: The term of this Lease shall be for a period of [Number] years, commencing on [Commencement Date].

Renewal Option: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each, provided Tenant gives Landlord written notice of its intention to renew at least [Number] months prior to the expiration of the then-current term.

Early Termination: This lease may be terminated early by the tenant under the following circumstances: [List circumstances such as failure to obtain necessary licensing or condemnation].

5. Rent

Base Rent: The base rent shall be [Dollar Amount] per month, payable in advance on the [Day] day of each month.

Rent Calculation Method:

• Option A: NNN (Triple Net) – Tenant shall pay all property taxes, insurance, and common area maintenance costs in addition to the base rent.
• Option B: Gross – Landlord shall pay all property taxes, insurance, and common area maintenance costs.
• Option C: Modified Gross – Tenant shall pay a portion of the property taxes, insurance, and common area maintenance costs as specified below. [Specify details of modified gross terms]
• Option D: Percentage Rent - In addition to base rent, Tenant shall pay [Percentage]% of gross sales exceeding [Dollar Amount].

Security Deposit: Tenant shall deposit with Landlord a security deposit of [Dollar Amount], which shall be held in escrow as per North Dakota commercial real estate laws and returned to Tenant within [Number] days after the termination of this Lease, less any deductions for damages beyond normal wear and tear or unpaid rent.

Rent Escalation: The base rent shall increase by [Percentage]% annually, commencing on [Date]. Or the rent shall increase based on CPI increases.

Payment Method: Rent shall be payable to [Payee Name] at [Payment Address] via [Payment Method].

Late Payment: A late fee of [Dollar Amount] shall be charged for any rent payment received more than [Number] days after the due date. Interest will accrue on late payments at a rate of [Percentage]% per annum.

Property Taxes and Assessments: [Landlord/Tenant] is responsible for the payment of property taxes and special assessments.

Sales Tax: Tenant is responsible for the collection and remittance of all applicable North Dakota sales tax on food and alcohol sales.

6. Utilities

Tenant shall be responsible for the payment of all utilities, including gas, water, electricity, trash/grease removal, and HVAC, specifically the specialized requirements for kitchen operations.

Tenant is responsible for maintenance of exhaust/ventilation systems and compliance with North Dakota plumbing/fire codes related to sewer/grease interceptors.

7. Exclusive Rights and Restrictions

Exclusive Rights: [Specify any exclusive rights granted to the tenant, e.g., no similar cuisine in the development.]

Restrictions: Tenant shall comply with the following restrictions: [List restrictions on operating hours, noise, odors, signage, outdoor seating, music/entertainment.] These restrictions are in accordance with local ordinances.

8. Tenant Improvements

Option A: Landlord shall provide a Tenant Improvement (TI) allowance of [Dollar Amount] for approved improvements to the Premises.

Option B: Tenant shall be responsible for all Tenant Improvements.

All Tenant Improvements shall be subject to Landlord's prior written approval and must comply with all applicable building codes and permitting processes under North Dakota and local jurisdictions. Tenant is responsible for obtaining the necessary permits.

Timeline: Tenant Improvements shall be completed within [Number] months of the Lease commencement date.

Tenant shall provide Landlord with as-built documentation and lien waivers upon completion of Tenant Improvements.

9. Repair and Maintenance

Landlord Responsibilities: Landlord shall be responsible for maintaining the building structure, roof, and parking areas.

Tenant Responsibilities: Tenant shall be responsible for maintaining the interior of the Premises, including HVAC (restaurant-specific cooling/ventilation loads), plumbing, specialized equipment (walk-in coolers, kitchen systems, exhaust hoods, fire suppression), routine cleaning, and pest control.

Landlord is responsible for the repairs of the following items: [List any exceptions that Landlord is responsible for, e.g., structural repairs to the HVAC system].

10. Fire Protection

Tenant shall comply with all applicable North Dakota fire protection laws, including maintaining sprinklers, Class K fire extinguishers, fire suppression hood inspections, and emergency exits. Tenant is responsible for ensuring compliance with occupancy limits.

11. Environmental Health and Sanitation

Tenant shall comply with all environmental health and sanitation regulations, including grease trap/interceptor maintenance and proper food waste disposal.

Landlord represents that the property is free from hazardous substances and code violations at move-in.

12. Insurance

Tenant shall maintain the following insurance coverage:

• Commercial General Liability: [Dollar Amount]
• Property Insurance: [Dollar Amount]
• Liquor Liability (if applicable): [Dollar Amount]
• Food Contamination/Spoilage: [Dollar Amount]
• Business Interruption: [Dollar Amount]

Landlord shall be named as an additional insured on Tenant's Commercial General Liability policy.

Tenant shall provide Landlord with proof of annual insurance renewal.

13. Outdoor Features

Tenant shall obtain Landlord's prior written approval for any outdoor features, including patio seating, signage, awnings, and landscaping, all in compliance with local sign and use codes.

14. Operational Requirements

Tenant shall comply with local employment law postings and ADA/state accessibility standards.

Landlord shall cooperate with public health inspections.

15. Continuous Operation

Tenant shall continuously operate the restaurant during the following hours: [List operating hours].

Tenant shall maintain standards of service, maintenance of business reputation, and standards of hygiene.

Prolonged closure or loss of necessary licenses shall constitute a breach of this Lease.

16. Relocation, Remodeling, and Co-Tenancy

Relocation: [Specify any relocation rights.]

Remodeling: [Specify conditions for remodeling by landlord.]

Co-Tenancy: [Specify co-tenancy requirements in a multi-tenant center.]

17. Guaranty

If Tenant is a corporate entity, [Guarantor Name] personally guarantees the performance of Tenant's obligations under this Lease.

18. Move-In and Move-Out

Upon termination of this Lease, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted.

Tenant shall remove all specialty restaurant equipment, clean the grease trap, and balance the HVAC system.

Landlord shall inspect the Premises and return the security deposit within [Number] days, less any deductions as per North Dakota commercial landlord-tenant law.

19. Default and Remedies

If Tenant fails to pay rent or otherwise breaches this Lease, Landlord shall provide written notice of default.

Tenant shall have [Number] days to cure the default.

If Tenant fails to cure the default, Landlord may terminate this Lease and pursue all available remedies, including eviction, as per North Dakota law.

20. Subordination, Non-Disturbance, and Attornment

This Lease shall be subordinate to any existing or future mortgages on the property.

Landlord shall provide Tenant with a non-disturbance agreement.

Tenant agrees to attorn to any successor owner of the property.

21. Assignment and Subletting

Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent.

Landlord's consent will not be unreasonably withheld.

22. Dispute Resolution

Any disputes arising under this Lease shall be resolved through negotiation, then mediation.

If mediation fails, the dispute shall be resolved through binding arbitration in [City], North Dakota.

This Lease shall be governed by the laws of the State of North Dakota.

23. Entire Agreement

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

Any amendments to this Lease must be in writing and signed by both parties.

24. Compliance with Laws

This agreement is compliant with all applicable North Dakota statutes, real property, business entity, tax, restaurant, alcohol, and fire safety regulations, and is adjustable for evolving local government or health department policy or industry trends affecting restaurant use.

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

Landlord:

____________________________

[Landlord Name]

____________________________

[Landlord Signature]

Tenant:

____________________________

[Tenant Name]

____________________________

[Tenant Signature]