Oregon restaurant lease agreement template

Oregon Restaurant Lease Agreement

This Restaurant Lease Agreement ("Agreement") is made and entered into as of [Date of Execution], by and between [Landlord Legal Name], whose address is [Landlord Address] ("Landlord"), and [Tenant Legal Name], whose address is [Tenant Address] ("Tenant"). If either party is a business entity, include: Organized under the laws of [State of Organization], with registered agent [Registered Agent Name] at [Registered Agent Address].

Premises

Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at [Street Address], [County] County, Oregon, Tax Lot Number [Tax Lot Number], consisting of approximately [Square Footage] square feet and located on the [Floor Location] floor of the building (the "Premises").

Option B: The Premises includes a dining area, kitchen, storage area, and [Number] bathrooms, as depicted on Exhibit A attached hereto. The Premises has a permitted seating capacity of [Number].

Option C: The Premises includes/excludes [Description of Patio/Outdoor Area], parking spaces [Number], and the following exclusive-use spaces: [Description of Exclusive Use Spaces].

Use of Premises

Option A: The Premises shall be used and occupied solely for the operation of a restaurant and related food and beverage service, including takeout and delivery.

Option B: The following uses are expressly prohibited: [List of Prohibited Uses, e.g., bars, nightclubs, ghost kitchens].

Option C: Tenant shall not make any unauthorized changes in use, sublease, or assign this Lease without Landlord's prior written consent, which shall not be unreasonably withheld, and in compliance with Oregon landlord/tenant law.

Compliance with Laws

Option A: Tenant shall comply with all applicable Oregon zoning, building, food safety, alcohol licensing (OLCC requirements), ADA, and fire code regulations.

Option B: Tenant shall obtain and maintain all relevant permits and licenses during the Lease Term and shall promptly remedy any code violations.

Option C: Tenant is responsible for understanding and adhering to Oregon Health Authority regulations regarding food safety and handling.

Lease Term

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

Option B: Tenant shall have the option to renew/extend this Lease for [Number] additional term(s) of [Duration] each. Tenant must provide written notice of its intent to renew at least [Number] days prior to the expiration date of the then-current term, in accordance with Oregon law.

Option C: Holdover occupancy shall be on a month-to-month basis at [Percentage]% of the then-current rent, subject to Oregon law.

Rent

Option A: Tenant shall pay Landlord a base rent of [Dollar Amount] per month, payable in advance on the first day of each month.

Option B: In addition to base rent, Tenant shall pay percentage rent equal to [Percentage]% of gross sales exceeding [Dollar Amount] per month. Gross sales shall be defined as all revenue from the sale of food, beverages, and merchandise from the Premises, excluding sales tax.

Option C: A security deposit of [Dollar Amount] is due upon execution of this Lease. Landlord shall hold the security deposit in accordance with Oregon statutes. Landlord is required to follow ORS 90.300 regarding security deposits.

The base rent shall escalate as follows: [Escalation Schedule].

Late charges of [Dollar Amount] will be assessed for rent payments received more than [Number] days after the due date. Returned check fees of [Dollar Amount] will be charged.

Rent Structure (Choose One)

Option A: Triple-Net (NNN) Lease: Tenant shall be responsible for its pro-rata share of property taxes, insurance, and common area maintenance (CAM) costs.

Option B: Modified Gross Lease: Tenant shall be responsible for base rent plus utilities. Landlord is responsible for property taxes, insurance, and CAM.

Option C: Full-Service Lease: Landlord shall be responsible for all operating expenses, including utilities, property taxes, insurance, and CAM.

Utilities and Expenses

Option A: Tenant shall be responsible for payment of all utilities, including gas, water, electricity, trash, and grease trap maintenance.

Option B: Landlord shall be responsible for [Specific Utilities], and Tenant shall be responsible for [Specific Utilities].

Option C: Tenant shall pay for its share of common area maintenance (CAM), including landscaping, snow removal, and common area repairs.

Commercial Kitchen Infrastructure

Option A: The Premises is equipped with a [Description of Hood System] hood system, [Description of Grease Trap] grease trap, [Number] walk-in coolers/freezers, and [Description of Fire Suppression System] fire suppression system.

Option B: Tenant is responsible for initial inspection, maintenance, and replacement of all kitchen equipment.

Option C: Landlord represents that the existing gas and electrical load capacity is sufficient for restaurant use.

Tenant shall adhere to all Oregon Health Authority and local environmental requirements related to kitchen operations.

Signage

Option A: Tenant shall have the right to install exterior signage, subject to Landlord's approval and compliance with local planning and zoning department regulations.

Option B: Tenant’s signage must be compliant with [City/County] regulations.

Option C: Tenant can/cannot install an awning or patio enclosure, subject to Landlord’s approval and permits from [City/County].

Tenant Improvements

Option A: Tenant may make tenant improvements, subject to Landlord's prior written approval of the plans and specifications. All improvements shall be performed in compliance with Oregon lien law.

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

Option C: All fixtures, including trade fixtures and built-in restaurant equipment, shall [Remain Property of Tenant OR Become Property of Landlord] upon termination of the Lease.

Repair and Maintenance

Option A: Landlord shall be responsible for the repair and maintenance of the Premises structure, including the roof, walls, foundation, plumbing, HVAC, and fire sprinklers.

Option B: Tenant shall be responsible for the repair and maintenance of all restaurant fixtures and equipment.

Option C: Tenant is responsible for pest control in alignment with industry and Oregon Health Authority standards.

Insurance

Option A: Tenant shall maintain liability, property, worker’s compensation, and business interruption insurance, with Landlord named as an additional insured, as required by Oregon law, with minimum coverage of [Dollar Amount].

Option B: Tenant is required to promptly notify Landlord of any property damage or casualty events.

Option C: Rent abatement and lease termination rights in the event of casualty shall be governed by Oregon statutes.

Fire, Earthquake, and Emergency Protocols

Option A: Tenant shall establish fire, earthquake, and emergency protocols, including evacuation procedures relevant to restaurant operations, compliance with Oregon and municipal safety codes, and documentation of annual inspections.

Option B: Tenant is responsible for documenting annual fire/safety inspections.

Option C: The parties will establish procedures for earthquake and evacuation protocols.

Operating Procedures and Access

Option A: Tenant shall establish reasonable opening/closing procedures and hours of operation.

Option B: Landlord shall have the right to access the Premises for repairs, inspections, or showing the property, in compliance with Oregon Commercial Landlord Tenant Act notice requirements.

Option C: Noise and area restrictions shall be adhered to as required by [City/County].

Security Deposit

Option A: Landlord shall hold the security deposit in accordance with Oregon law, ORS 90.300.

Option B: Landlord shall return the security deposit, less any permitted deductions, within [Number] days following lease termination.

Option C: Permitted deductions from the security deposit include [List of Permitted Deductions].

Move-In and Move-Out

Option A: Landlord and Tenant shall conduct walkthroughs of the Premises prior to move-in and move-out to document the condition of the Premises.

Option B: Tenant shall return all keys/codes to Landlord upon move-out.

Option C: Treatment of abandoned property shall be governed by Oregon law.

Default and Remedies

Option A: Monetary defaults include failure to pay rent when due. Non-monetary defaults include violation of the use restrictions or failure to maintain the Premises.

Option B: Tenant shall have [Number] days to cure a monetary default and [Number] days to cure a non-monetary default after written notice from Landlord, served per Oregon’s service requirements.

Option C: Landlord's remedies for default include re-entry, re-letting, or pursuit of damages consistent with Oregon Revised Statutes.

Indemnification

Tenant shall indemnify Landlord for all claims arising from Tenant's restaurant operations or any breach of food safety, employment, or liquor regulations.

Taxes

Option A: Tenant shall be responsible for payment of any local attraction or meal taxes.

Option B: Responsibility for Oregon property taxes, business personal property taxation, and any local assessments shall be allocated as follows: [Allocation of Tax Responsibilities].

Dispute Resolution

Option A: The parties shall attempt to resolve any disputes through negotiation and mediation.

Option B: If mediation is unsuccessful, the parties shall submit to [Binding or Non-Binding] arbitration in the state of Oregon.

Option C: Exclusive venue for any litigation shall be in the county where the Premises is located, and Oregon law shall govern.

Assignment and Subletting

Tenant shall not assign or sublet this Lease without Landlord's prior written consent. Any assignee/subtenant must meet all Oregon health, safety, and licensing standards and obtain prior Landlord approval.

Environmental and Sustainability

Tenant shall comply with all applicable Oregon DEQ, health codes, and any relevant city or county ordinances regarding waste disposal, recycling, grease trap maintenance, and smoke/odor abatement.

Notice

All notices shall be in writing and delivered by [Permitted Delivery Methods] to the following addresses:

Landlord: [Landlord Address]

Tenant: [Tenant Address]

Notice shall be considered given pursuant to ORS 90.155.

Miscellaneous Provisions

Option A: Personal Guarantee: [Name of Guarantor] personally guarantees Tenant's obligations under this Lease.

Option B: Co-Tenancy Clause: This Lease is contingent upon the occupancy of [Anchor Tenant Name] in the building.

Option C: Exclusive Use Clause: Landlord shall not lease any other space in the building to a [Type of Cuisine] restaurant.

Special terms for delivery/takeout, outdoor dining, or public health emergencies: [Special Terms].

This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon. Tenant confirms they can adapt the lease to the actual business model, restaurant operational needs, and the unique physical or regulatory features of the property.

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

[Landlord Legal Name]

By: [Landlord Signature]

[Landlord Printed Name]

[Tenant Legal Name]

By: [Tenant Signature]

[Tenant Printed Name]