Ohio restaurant lease agreement template

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How Ohio restaurant lease agreement Differ from Other States

  1. Ohio law requires explicit provisions for fire and building code compliance that must be observed by restaurant tenants, more strictly than some other states.

  2. Security deposit handling in Ohio must adhere to detailed state guidelines, including mandatory refund timelines and interest obligations for deposits over $50 or one month’s rent.

  3. Commercial leases for restaurants in Ohio are affected by unique state liquor licensing rules that may impact lease terms and tenant obligations.

Frequently Asked Questions (FAQ)

  • Q: Is a written lease agreement required for restaurant leases in Ohio?

    A: While not legally required, a written lease is strongly recommended to clarify terms and protect both parties’ rights.

  • Q: How are security deposits handled under Ohio law in restaurant leases?

    A: Ohio law requires landlords to return security deposits within 30 days, plus interest if deposits exceed $50 or one month's rent.

  • Q: Can a restaurant lease include provisions for liquor licensing in Ohio?

    A: Yes, Ohio leases often include clauses about liquor licensing, transferring obligations, or contingencies tied to license approval.

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Ohio Restaurant Lease Agreement

This Ohio Restaurant Lease Agreement (the “Agreement”) is made and entered into as of [Date of Signing], by and between [Landlord Full Legal Name], residing at [Landlord Address] (“Landlord”), and [Tenant Full Legal Name], residing at [Tenant Address] (“Tenant”). If applicable, Landlord's registered agent is [Registered Agent Name] located at [Registered Agent Address]. Tenant's registered agent is [Tenant Registered Agent Name] located at [Tenant Registered Agent Address].

Premises

Option A: The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises located at [Property Address], in [County Name] County, Ohio, with parcel number [Parcel Number], and legally described as: [Legal Property Description] (the "Premises").

Option B: The Premises consists of approximately [Square Footage] square feet of restaurant space, including a kitchen area, dining room, restrooms, storage areas, [indicate presence of outdoor seating, bar area, basement], access points as shown on Exhibit A, dedicated parking stalls [Number], loading dock access and location, dumpster location, and grease trap location as shown on Exhibit B.

Option C: The Premises includes exclusive use of [Description of Exclusive Use e.g. patio], and shared use of [Description of Shared Use e.g. equipment room, utility lines, ventilation systems, common areas].

Permitted Use

Option A: The Premises shall be used and occupied solely for the purpose of operating a [Restaurant Type, e.g., Full-Service, Fast-Casual, Takeout] restaurant, including the service of alcoholic beverages if applicable, subject to obtaining and maintaining all required licenses and permits.

Option B: The Tenant shall not use the Premises for any non-restaurant use without the Landlord's prior written consent.

Option C: The Tenant shall not operate a late-night venue or convert the Premises to a non-food establishment without the Landlord's prior written consent.

Compliance

Option A: The Tenant shall comply with all applicable Ohio and local (city/county) zoning, food service, and health codes, including but not limited to Ohio food service license, liquor license (if applicable), Department of Agriculture requirements, fire and occupancy permits, and sign permits.

Option B: The Tenant shall secure and maintain all required licenses and permits throughout the Lease Term.

Option C: The Tenant shall ensure food handling compliance, certification for employees, kitchen equipment inspection, and up-to-date fire safety systems, including regular fire suppression system maintenance, hood and duct cleaning, and emergency exit compliance as required by Ohio Fire Code and local fire authorities.

Lease Term

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

Option B: The Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each, provided that the Tenant gives the Landlord written notice of its intent to renew at least [Number] months prior to the expiration of the initial term.

Option C: Prior to the commencement date, a pre-possession inspection will be conducted to verify compliance with all outstanding code violations, which are the responsibility of [Landlord/Tenant].

Rent

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

Option B: The rent shall be calculated as [Percentage]% of gross sales, with a minimum monthly rent of [Dollar Amount]. The Tenant shall provide detailed gross sales reports to the Landlord on a [Frequency, e.g., Monthly, Quarterly] basis, according to the following requirements: [Detailed Gross Sales Reporting Requirements].

Option C: A security deposit of [Dollar Amount] shall be paid by the Tenant upon execution of this Lease, to be held by the Landlord in accordance with Ohio law. This security deposit will be held in [Name of Bank], Ohio.

Additional Rent

Option A: In addition to the base rent, the Tenant shall be responsible for the following triple net obligations: real estate taxes, insurance, CAM/common area maintenance, utilities, refuse removal, snow removal, landscaping, and a share of building-wide maintenance costs.

Option B: The Tenant shall pay [Dollar Amount or Percentage] per month for Common Area Maintenance (CAM).

Option C: The Tenant shall pay any additional rent or late fees within [Number] days of written notice from Landlord. Late fees shall accrue at [Percentage]% per month.

Utilities

Option A: The Tenant shall be responsible for all utilities, including water, sewer, gas, electric, internet, and grease trap cleaning.

Option B: The Landlord shall be responsible for [Specific Utility], and the Tenant shall be responsible for all other utilities. Sub-metering or allocation agreements will be used for shared utilities.

Option C: In the event of a utility outage that affects restaurant operation, [Outline procedure for handling utility outages].

Alterations and Improvements

Option A: The Tenant may make alterations and improvements to the Premises with the Landlord's prior written consent, which shall not be unreasonably withheld. All plans and permits must be obtained by the Tenant.

Option B: Build-out standards for restaurant kitchen installations, including hoods, venting, grease traps, fire suppression, and walk-in coolers, must comply with all applicable codes and regulations.

Option C: Upon termination of this Lease, the Tenant shall [Restore/Not Restore] the Premises to its original condition, unless otherwise agreed in writing. Trade fixtures and equipment shall be owned by [Landlord/Tenant].

Maintenance and Repair

Option A: The Tenant shall maintain the kitchen exhaust, grease trap, food waste disposal, refrigeration, cooking lines, dishwasher, restrooms, and dining areas in compliance with Ohio health code.

Option B: The Landlord shall maintain the structural integrity, roof, foundational plumbing/electrical, and building-wide HVAC.

Option C: Detailed pest control practices in compliance with health code are the responsibility of [Landlord/Tenant].

Insurance

Option A: The Tenant shall maintain commercial general liability and property insurance, with minimum coverage amounts of [Dollar Amount] for property, fire, business interruption, and liquor liability (if alcohol is served).

Option B: The Landlord shall be named as an additional insured on the Tenant's insurance policy.

Option C: The Tenant shall comply with all insurance standards as regulated by Ohio statutes and local law.

Emergency Procedures

Option A: The Tenant shall comply with all fire and emergency procedures in compliance with Ohio law, including designated evacuation plans and periodic fire drills.

Option B: The Tenant shall notify the Landlord immediately upon the occurrence of any incident or public health violation.

Option C: The Tenant must have a written emergency plan on file in the restaurant.

Landlord Access

Option A: The Landlord shall have the right to access the Premises for mandatory inspections (such as Health Department, fire code, or HVAC) with reasonable notice to the Tenant, in compliance with Ohio statutes.

Option B: The Tenant shall immediately notify the Landlord upon receipt of any government violation/notice.

Option C: Access to the premises may only be conducted during normal business hours of the restaurant, unless exigent circumstances exist.

Default

Option A: If the Tenant fails to pay rent or otherwise breaches this Lease, the Landlord shall provide written notice of the default and allow the Tenant [Number] days to cure the default.

Option B: In the event of a Tenant default, the Landlord may pursue all available remedies, including accelerated rent, self-help (if permitted under Ohio law), and summary eviction in accordance with Ohio law.

Option C: If the Landlord defaults under this lease, the Tenant may pursue abatement, set-off, or self-remedy (if permitted under Ohio law).

Assignment and Subletting

Option A: The Tenant shall not assign this Lease or sublet the Premises without the Landlord's prior written consent, which shall not be unreasonably withheld.

Option B: The Landlord may require review of any transferee's food service experience, creditworthiness, or regulatory compliance before granting consent.

Option C: Any assignment or sublease must be for a use compatible with the existing restaurant use.

Delivery and Acceptance of Premises

Option A: Delivery and acceptance of the Premises shall occur upon completion of construction or required upgrades, as evidenced by a punch-list inspection process.

Option B: Allocation of costs for required code compliance upgrades shall be the responsibility of [Landlord/Tenant].

Option C: If possession is delayed due to the Landlord or failure of governmental inspections, [Outline procedures for handling delays].

Surrender of Premises

Option A: Upon termination of this Lease, the Tenant shall surrender the Premises in broom-clean, code-compliant condition, with all trade fixtures removed.

Option B: An inspection will be conducted to assess any damages, and the security deposit will be returned in accordance with Ohio security deposit and damage laws.

Option C: Any damage to the premises will be charged to the tenant and deducted from the security deposit.

Liquor License

Option A: The Tenant shall be responsible for obtaining and maintaining a valid liquor license, if applicable, in compliance with the Ohio Division of Liquor Control.

Option B: [Outline rights/obligations regarding transfer or surrender of liquor license].

Option C: [Outline protections if liquor license transfer is delayed or refused].

Dispute Resolution

Option A: Any disputes arising out of this Lease shall be resolved through negotiation, followed by Ohio-based mediation/arbitration, as agreed upon by the parties.

Option B: Venue for any legal action shall be in [County Name] County, Ohio.

Option C: The prevailing party shall be entitled to recover its reasonable attorney fees.

Compliance with Laws

Option A: The Tenant shall comply with all applicable Ohio commercial property, food safety, fire, labor, and liquor laws, as well as non-discrimination and accessibility requirements under state and federal law.

Option B: The Tenant shall be responsible for the collection and remittance of sales taxes on food/alcohol sales and all locally mandated restaurant assessments.

Option C: Landlord represents the Premises are in compliance with applicable building, fire, and zoning laws as of lease execution.

Force Majeure

Option A: Neither party shall be liable for any failure to perform its obligations under this Lease due to force majeure events, including but not limited to acts of God, war, riots, strikes, or government-mandated closures.

Option B: This includes coverage for government-mandated closures and pandemic-related restrictions on food service.

Option C: In the event of force majeure, rent will be [abated/reduced] by [Percentage].

Signage

Option A: The Tenant shall have the right to install signage on the Premises, subject to compliance with all applicable city and state signage ordinances.

Option B: [Specify details regarding indicative signs, menu boards, and sidewalk usage].

Option C: Landlord approval of signage is required prior to installation.

Exclusive Rights

Option A: The Tenant shall have exclusive rights to operate a [Cuisine Type] restaurant within a [Radius] radius of the Premises.

Option B: [Outline details regarding parking or valet rights].

Option C: The Landlord reserves the right to [adjust property/allow competing use]

Indemnification

Option A: The Tenant shall indemnify and hold the Landlord harmless from any claims arising from the Tenant's operation of the restaurant, including but not limited to food poisoning, allergen exposure, and ADA accessibility.

Option B: The Tenant shall maintain all relevant certifications needed to comply with applicable laws.

Option C: Landlord shall not be held liable for any claims arising from food poisoning, allergen exposure, and ADA accessibility.

Relocation or Termination

Option A: In the event that the law prohibits restaurant use at the Premises, the Landlord shall have the right to relocate the Tenant to another suitable location on the property or terminate this Lease.

Option B: [Outline damages/procedures for relocation or termination as allowed under Ohio law].

Option C: If the Landlord elects to terminate the lease, the Tenant will receive [Number] months' notice.

Notices

Option A: All notices under this Lease shall be in writing and delivered in accordance with Ohio law, including electronic and overnight delivery.

Option B: Notices to the Landlord shall be sent to [Landlord Address].

Option C: Notices to the Tenant shall be sent to [Tenant Address].

This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio.

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

____________________________

[Landlord Full Legal Name]

____________________________

[Tenant Full Legal Name]

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