South Dakota restaurant lease agreement template

South Dakota Restaurant Lease Agreement

This South Dakota Restaurant Lease Agreement (the “Agreement”) is made and entered into as of this [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, include the registered business name and address, and the name and title of the authorized representative:

• Landlord Business Name: [Landlord Business Name]
  • Landlord Business Address: [Landlord Business Address]
  • Landlord Authorized Representative: [Representative Name and Title]
• Tenant Business Name: [Tenant Business Name]
  • Tenant Business Address: [Tenant Business Address]
  • Tenant Authorized Representative: [Representative Name and Title]

1. Leased Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the restaurant premises located at [Street Address], City of [City], County of [County], State of South Dakota, and legally described as follows: [Legal Property Description]. The Leased Premises includes the site plans attached hereto as Exhibit A showing building layout, square footage, dining area, kitchen, bar, storage, restrooms, outdoor seating (if any), parking allocation, loading zones, grease trap locations, dedicated dumpster areas, and exclusive or shared use spaces.

• Option A: The Leased Premises consists of approximately [Square Footage] square feet.
• Option B: The precise square footage will be determined by a survey at the expense of [Landlord/Tenant].

2. Permitted Use

The Leased Premises shall be used and occupied solely for the purpose of operating a restaurant business, specifically: [Type of Restaurant Service, e.g., Full-service dining, Quick-service, Bar service].

• Option A: Tenant shall not change the use of the Leased Premises without the Landlord’s prior written consent.
• Option B: Tenant shall not sublet or assign this Lease without the Landlord’s prior written consent.
• Tenant shall comply with all applicable zoning regulations and South Dakota Department of Health/Department of Agriculture requirements. Tenant is responsible for obtaining and maintaining all necessary cuisine-specific licenses, including but not limited to: [List Licenses, e.g., Alcohol license, Food handling permit].

3. Lease Term

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

• Option A: Renewal Options: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Term] each, provided that Tenant provides written notice to Landlord at least [Number] months prior to the expiration of the then-current term.
• Option B: Right of First Refusal: Tenant shall have the right of first refusal to lease any adjacent space that becomes available during the term of this Lease.
• Option C: Early Termination:
  • Tenant may terminate this lease early due to [Specific Reason, e.g., regulatory closure, fire, condemnation, or inability to obtain/maintain permits] with [Number] days written notice.

4. Rent

The Tenant shall pay to the Landlord rent as follows:

• Base Rent: The base rent shall be [Dollar Amount] per month, payable in advance on the [Day] of each month.
• Payment Method: Rent shall be paid by [Payment Method, e.g., check, electronic transfer] to [Payment Address/Account Details].
• Rent Escalation:
  • Option A: The base rent shall increase by [Percentage]% annually.
  • Option B: The base rent shall increase according to the Consumer Price Index (CPI) for [Specific Region].
• Percentage Rent:
  • In addition to base rent, Tenant shall pay [Percentage]% of gross sales.
  • Gross sales shall be defined as [Define Gross Sales, e.g., all revenue from the restaurant, excluding sales tax].
  • Tenant shall provide monthly sales reports to Landlord by the [Day] of the following month. Landlord shall have the right to audit these reports.
• Sales Tax: Tenant is responsible for collecting and remitting South Dakota sales tax.

5. Security Deposit

Tenant shall deposit with Landlord a security deposit of [Dollar Amount].

• The security deposit shall be held in an escrow account at [Bank Name].
• Permissible deductions from the security deposit include: [List Permissible Deductions, e.g., damage to the premises beyond normal wear and tear, unpaid rent].
• The security deposit shall be returned to Tenant within [Number] days of the termination of this Lease, less any permissible deductions, as required by South Dakota law.

6. Utilities

Responsibility for utilities shall be as follows:

• Water: [Landlord/Tenant]
• Gas: [Landlord/Tenant]
• Sewer: [Landlord/Tenant]
• Electric: [Landlord/Tenant]
• Kitchen Waste Removal: [Landlord/Tenant]
• Internet/Phone: [Landlord/Tenant]
• Oil and Grease Trap Maintenance: [Landlord/Tenant]
• Waste Water Discharge Compliance Fees: [Landlord/Tenant]
• Tenant is responsible for complying with all municipal restaurant waste ordinances.

7. Common Area Maintenance (CAM)

Tenant shall pay [Percentage]% of the Landlord’s costs for Common Area Maintenance (CAM).

• CAM costs include: [List CAM Costs, e.g., property taxes, insurance premiums, sidewalk snow removal, service contracts (pest control, fire suppression system inspection)]. Landlord shall provide Tenant with a detailed accounting of CAM costs.

8. Alterations and Improvements

Tenant may make alterations and improvements to the Leased Premises with Landlord’s prior written consent.

• All alterations and improvements must comply with South Dakota building and fire codes, ADA and food establishment accessibility requirements.
• Option A: Tenant shall own all alterations and improvements made to the Leased Premises.
• Option B: All alterations and improvements shall become the property of the Landlord upon termination of this Lease.
• At the termination of this Lease, Tenant shall [Restore the premises to its original condition/Leave the alterations and improvements in place].

9. Maintenance and Repair

Maintenance and repair responsibilities are as follows:

• Landlord shall be responsible for: [List Landlord Responsibilities, e.g., structural repairs, roof, HVAC systems].
• Tenant shall be responsible for: [List Tenant Responsibilities, e.g., maintenance of food prep areas, kitchen exhaust/ventilation, plumbing, refrigeration, hazardous material compliance].
• Tenant is responsible for proper handling and disposal of "green grease," fire suppression systems, and chemical storage in compliance with regulations.

10. Condition of Premises

• A pre-occupancy condition report shall be completed by both parties prior to Tenant taking possession.
• A move-out inspection will be conducted upon termination of this lease.

11. Insurance

Tenant shall maintain the following insurance policies:

• General Liability Insurance: [Dollar Amount]
• Liquor Liability Insurance: [Dollar Amount] (if applicable)
• Property/Building Insurance: [Dollar Amount]
• Loss of Business/Interruption Insurance: [Dollar Amount]
• Coverage for Food Spoilage and Equipment Breakdown: [Dollar Amount]
• Landlord shall be named as an additional insured on all policies.
• Tenant shall provide proof of insurance to Landlord.

12. Compliance with Laws

Tenant shall comply with all applicable federal, South Dakota, and local laws, including but not limited to:

• Fire safety laws
• Health laws
• Liquor laws
• Employment laws
• Tenant is responsible for maintaining a vent hood cleaning schedule, fire extinguisher and suppression inspections, state health certifications, and alcohol-serving employee training.

13. Signage

Tenant shall have the right to install signage on the Leased Premises, subject to Landlord’s approval and compliance with local South Dakota sign ordinances.

14. Trash and Recycling

Tenant shall be responsible for trash and recycling storage, pickup, rodent and pest control measures. Tenant shall maintain a grease trap maintenance log/video confirmation as required by local health inspectors.

15. Casualty

In the event of casualty, fire, flood, or weather-related events:

• [Specify protocols and liability for business interruption, abatement of rent, repair timelines, and emergency procedures].

16. Assignment and Subletting

Tenant may not assign this Lease or sublet the Leased Premises without Landlord’s prior written consent, which shall not be unreasonably withheld.

• [Specify conditions for transfer of lease in connection with sale of restaurant business and landlord's reasonable approval right.]

17. Default and Remedies

Events of default include: [List Events of Default, e.g., non-payment of rent, loss of licenses, health violations].

• South Dakota-specific cure periods shall apply.
• Landlord shall have the right of re-entry and recovery of damages or costs.

18. Governmental Compliance and Inspections

Tenant shall notify Landlord of any health and safety inspections or liquor license audits. [Specify consequences of failed inspections].

19. Operating Hours and Nuisance

Tenant shall adhere to all state, city, and county restaurant operating hours, nuisance, signage, and noise ordinances common to South Dakota.

20. Dispute Resolution

Any disputes arising under this Lease shall be resolved by [Negotiation/Mediation/Arbitration].

• This Lease shall be governed by the laws of the State of South Dakota.
• The venue for any legal proceedings shall be [County Name] County, South Dakota.
• [Specify allocation of attorney's fees].

21. Pandemic Provisions

• [Address COVID-19 or pandemic-specific provisions, such as temporary closure, government-mandated operating limitations, rent relief possibilities based on recent South Dakota guidelines].

22. Notices

All notices regarding this Lease shall be in writing and sent to the addresses listed above by [Certified Mail/Registered Mail/Email with Confirmation].

23. Tenant’s Property

Upon termination of this Lease, [Specify treatment of tenant’s fixtures, furniture, point-of-sale and kitchen equipment ownership, and removal or surrender conditions].

24. Landlord Access

Landlord shall have the right to access the Leased Premises for periodic inspections, repairs, or prospective purchaser tours with [Number] hours' notice, in compliance with South Dakota privacy and notice statutes.

25. Food Safety Compliance

Tenant shall be obligated for ongoing compliance with food safety standards as established by South Dakota state agencies and local ordinances.

26. Local Tax Considerations

[Address any unique local tax considerations, such as municipal gross receipts taxes or special assessments for the hospitality industry if applicable].

27. Required Disclosures

[Address any required disclosures specific to South Dakota, such as asbestos, environmental hazards, flooding risk, or historical property disclosures].

28. Indemnification

Tenant shall indemnify Landlord for injuries, food-borne illness, or violations connected to restaurant operations. Landlord shall indemnify Tenant for structural failures.

29. Statutory Notices

[Ensure all required South Dakota statutory notices and disclosures are included, such as fair housing (if residential units above), property condition statements, utility charge disclosures for multi-tenant sites].

30. Amendments

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

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

____________________________
[Landlord Name]

____________________________
[Tenant Name]