Pennsylvania restaurant lease agreement template

Pennsylvania Restaurant Lease Agreement

This Pennsylvania Restaurant Lease Agreement ("Agreement") is made and entered into as of [Date], by and between:

[Landlord Name], a [Landlord Entity Type, e.g., Limited Liability Company], with an address of [Landlord Address] ("Landlord"), and

[Tenant Name], a [Tenant Entity Type, e.g., Corporation], with an address of [Tenant Address] ("Tenant").

1. Demised Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises located at [Property Address], with a parcel number of [Parcel Number] (the "Premises").

The Premises are further described as:

• Option A: The entire space consisting of approximately [Square Footage] square feet, as depicted in the floor plan attached as Exhibit A.
• Option B: A portion of the building consisting of approximately [Square Footage] square feet, including a dining area, kitchen space, bar area, storage space, restrooms, [Number] parking spaces, [Description of Outdoor Seating] outdoor seating area (subject to municipal permits), a loading zone, and designated dumpster placement.

ADA Accessibility: The Premises [are/are not] ADA accessible.

Exclusive Use:

• Option A: Tenant shall have the exclusive right to operate a full-service restaurant.
• Option B: Tenant shall have the exclusive right to provide outdoor dining services.
• Option C: Tenant shall have the exclusive right to provide bar services.

The Premises [include/do not include] use of the roof above the Demised Premises.

The Premises [include/do not include] access to common areas of the Building.

The Premises [include/do not include] designated outdoor seating areas.

2. Permitted Use and Pennsylvania Liquor License Compatibility

The Premises shall be used solely for the purpose of operating a restaurant and related food service operations, including the preparation, cooking, and serving of food and alcoholic beverages.

Exclusive Use Restrictions:

• Option A: Landlord agrees not to lease any other space in the building or property to a business whose primary purpose is the sale of [Specific Food Type, e.g., pizza] for consumption on or off the premises.
• Option B: None.

Pennsylvania Liquor License:

• Option A: Tenant is solely responsible for obtaining and maintaining all required Pennsylvania Liquor Control Board licenses and permits to sell alcoholic beverages at the Premises. Tenant agrees to operate the Restaurant in compliance with Pennsylvania Liquor Code.
• Option B: The existing liquor license [License Number] is [owned by/leased by] Landlord and will be [leased/transferred] to Tenant. The parties will execute the necessary documentation as required by the Pennsylvania Liquor Control Board.

Compliance: Tenant shall obtain and maintain all local, county, and state licenses and permits required for food service and alcohol service in Pennsylvania. Failure to obtain or maintain such licenses shall constitute a default under this Agreement. Tenant agrees to comply with all regulations of the Pennsylvania Department of Agriculture, Department of Health, and local health board.

3. Term and Renewal

Initial Term: The initial term of this Agreement shall be for [Number] years, commencing on [Start Date] and expiring on [End Date].

Renewal Option:

• Option A: Tenant shall have the option to renew this Agreement for [Number] additional terms of [Number] years each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the expiration of the then-current term. The rent for each renewal term shall be determined as follows: [Rent Determination Method, e.g., fair market value as determined by appraisal].
• Option B: None.

Early Termination:

• Option A: Tenant shall have the right to terminate this Agreement early by providing [Number] months' written notice to Landlord and paying a termination fee equal to [Amount or Formula].
• Option B: Landlord shall have the right to terminate this Agreement early if the Tenant fails to open for business within [Number] months of the commencement date.
• Option C: None.

4. Rent and Payments

Base Rent: The monthly base rent for the Premises shall be [Dollar Amount], payable in advance on the first day of each month, commencing on [Start Date].

Percentage Rent:

• Option A: In addition to the base rent, Tenant shall pay Landlord percentage rent equal to [Percentage]% of Tenant's gross food and beverage sales at the Premises. Tenant shall provide Landlord with monthly sales reports certified by a certified public accountant. Landlord shall have the right to audit Tenant's sales records.
• Option B: None.

Rent Escalation:

• Option A: The base rent shall increase by [Percentage]% on each anniversary of the commencement date.
• Option B: The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [Specific CPI Area].
• Option C: None.

Security Deposit: Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount], which shall be held in an escrow account at [Bank Name]. Landlord may use the security deposit to cover any damages to the Premises caused by Tenant, unpaid rent, or other amounts due under this Agreement, subject to Pennsylvania law. Landlord shall provide a written statement of deduction within 30 days of the termination date, and return any remaining amount within 30 days.

Late Payment: If rent is not paid within [Number] days of the due date, Tenant shall pay a late fee of [Dollar Amount].

Acceptable Payment Forms: Rent shall be paid by [Acceptable Payment Methods, e.g., check, wire transfer].

Taxes: Tenant shall be responsible for paying all [List Specific Taxes, e.g., Use and Occupancy Taxes, Food & Beverage Taxes, Local Business Privilege Taxes] related to the operation of its business at the Premises. Landlord shall be responsible for real property taxes.

5. Utilities and Services

Tenant Responsibilities: Tenant shall be responsible for paying for all utilities and services used at the Premises, including water, gas, electricity, heating, cooling, trash removal (including grease trap and recycling requirements), fire suppression, pest control, sidewalk maintenance, snow removal (if applicable), and grease and oil disposal in compliance with local ordinances.

Landlord Responsibilities: The Landlord shall be responsible for [Landlord's Utility Responsibilities, if any, e.g., maintaining the main water line].

6. Maintenance and Repair

Landlord Responsibilities: Landlord shall be responsible for maintaining and repairing the structure, roof, exterior, and major systems of the Premises.

Tenant Responsibilities: Tenant shall be responsible for maintaining and repairing the interior of the Premises, including kitchen equipment, fixtures, and for complying with all health code cleaning requirements. Tenant shall maintain the Premises in a clean and sanitary condition.

Frequency and Professionals: All maintenance and repairs shall be performed by qualified professionals/vendors in compliance with state and local codes.

7. Tenant Improvements and Alterations

Landlord Approval: Tenant shall not make any alterations or improvements to the Premises without Landlord's prior written consent.

Required Approvals: All tenant improvements, especially ventilation, kitchen hoods, HVAC upgrades, grease traps, walk-in coolers/freezers, signage, exhaust systems, and major plumbing or electrical upgrades, must comply with the Pennsylvania Uniform Construction Code, health, fire, and building codes, and must be approved by the relevant authorities.

Restoration: At the expiration or termination of this Agreement, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, unless otherwise agreed in writing by Landlord.

8. Pest Control

Tenant Responsibilities: Tenant shall be responsible for reporting and treating pest infestations specific to restaurant use, according to a schedule mutually agreed upon by Landlord and Tenant.

9. Waste Management

Tenant Responsibilities: Tenant shall comply with all municipal rules regarding waste management, including food waste, grease, and recyclable materials.

Food Safety: Tenant agrees to maintain food safety and sanitation standards exceeding general retail requirements.

10. Insurance

Tenant Insurance: Tenant shall maintain the following insurance coverage: Commercial General Liability insurance in the amount of [Dollar Amount], Property insurance, Food Spoilage insurance, Business Interruption insurance, and Liquor Liability (Dram Shop Act) coverage. Landlord shall be named as an additional insured on the Commercial General Liability policy.

11. Fire and Life Safety

Tenant Responsibilities: Tenant shall be responsible for maintaining the fire safety system, including sprinklers and fire extinguishers, and shall ensure that all employees receive emergency training.

Compliance: Tenant shall comply with all applicable fire and life safety codes.

12. Landlord Entry

Landlord Access: Landlord shall have the right to enter the Premises upon reasonable notice to Tenant, except in emergencies, to inspect the Premises or make necessary repairs.

13. HVAC and Kitchen Equipment Maintenance

Tenant Responsibilities: Tenant is responsible for maintaining the HVAC and kitchen equipment in good working order. The maintenance schedule must comply with local business license rules.

14. Liquor License

Ownership: [Landlord/Tenant] owns the liquor license [License Number].

Transferability: The Liquor License is [transferable/not transferable] subject to the requirements of the Pennsylvania Liquor Control Board. If the Liquor License can be sold or transferred it may be transferred to the new Landlord or Tenant at the end of the lease subject to Landlord or Tenant applying for a new license or inter-transfer permit from the PA Liquor Control Board.

Leased License: [If Applicable] In the event that the Landlord leases the liquor license to the Tenant, the Tenant shall be responsible for remitting the annual renewal fee directly to the PLCB and providing proof of such payment. The Tenant shall maintain all other obligations as required by the PLCB and Pennsylvania Law for the term of the lease as if it were the fee simple owner of the license.

15. Assignment and Subletting

Tenant shall not assign this Agreement or sublet the Premises without Landlord's prior written consent, which shall not be unreasonably withheld. Any assignment or subletting shall be subject to all terms and conditions of this Agreement and Pennsylvania real estate law.

16. Default and Remedies

If Tenant fails to pay rent when due or breaches any other term of this Agreement, Landlord shall have the right to pursue all remedies available under Pennsylvania law, including eviction, acceleration of rent, and recovery of damages.

Cure Period: Tenant shall have a [Number] day cure period to remedy any default, except for the non-payment of rent, which shall have a [Number] day cure period.

17. Indemnification

Tenant shall indemnify and hold Landlord harmless from any and all claims, liabilities, damages, and expenses arising out of Tenant's use of the Premises, including claims for foodborne illness and liquor liability.

18. Move-In and Move-Out

Condition of Premises: The Tenant accepts the Premises in "as is" condition.

Trade Fixtures: Tenant shall have the right to remove its trade fixtures and equipment at the expiration or termination of this Agreement, provided that Tenant repairs any damage caused by such removal.

Final Cleaning: Tenant shall leave the Premises in a clean and orderly condition at the expiration or termination of this Agreement.

19. Security Deposit

Security Deposit: The Security Deposit will be held in a non-interest bearing escrow account at a financial institution located within Pennsylvania.

Permitted Deductions: The Landlord is permitted to take deductions from the Security Deposit for the following: Unpaid rent and damages to the Demised Premises or common areas of the Building, but such damages must be beyond ordinary wear and tear.

Return of Security Deposit: Within thirty (30) days of the termination of the Lease and surrender of the Demised Premises to the Landlord, the Landlord will provide a statement detailing any deductions and return the remaining Security Deposit to the Tenant.

20. Signage and Advertising

Tenant shall obtain Landlord's approval and all required permits for any signage or advertising at the Premises. Pennsylvania liquor advertising laws must be followed.

21. Environmental Compliance

Tenant shall comply with all environmental laws and regulations, including those relating to ventilation and emissions, grease trap reporting, and hazardous materials management.

22. Zoning and Use Permits

Tenant is responsible for obtaining and complying with all applicable zoning and use permits.

23. Disaster, Condemnation, and Casualty

In the event of a disaster, condemnation, or casualty, this Agreement shall be governed by the applicable provisions of Pennsylvania law.

24. Existing Defects

Landlord and Tenant acknowledge and accept the risk of existing defects at the Premises.

25. Governing Law and Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. Any disputes arising out of or relating to this Agreement shall be resolved in the courts of [County Name] County, Pennsylvania.

Dispute Resolution:

• Option A: The parties agree to attempt to resolve any disputes through mediation before initiating litigation.
• Option B: Any dispute arising out of or relating to this Agreement shall be settled by binding arbitration in accordance with the rules of the American Arbitration Association.

26. Notices

All notices under this Agreement 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.

27. Parking, Noise, and Hours of Operation

Tenant shall comply with all rules and policies regarding customer parking, noise, music, entertainment, and hours of business.

28. Employee Facilities and ADA Compliance

Tenant shall provide adequate employee facilities and comply with all applicable labor laws and ADA requirements.

29. Disclosures

[List any required federal, state, and local disclosures]

30. Amendments

This Agreement may be amended only by a written instrument signed by both Landlord and Tenant.

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

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[Landlord Name], Landlord

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[Tenant Name], Tenant