Tennessee restaurant lease agreement template

Tennessee Restaurant Lease Agreement

This Restaurant Lease Agreement (the “Agreement”) is made and entered into as of this [Date], by and between [Landlord's Full Legal Name], residing at [Landlord's Address] (“Landlord”), and [Tenant's Full Legal Name], residing at [Tenant's Address] (“Tenant”).

Landlord and Tenant agree as follows:

Premises

Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at [Exact Property Address], Parcel ID [Parcel ID], legally described as [Legal Description] (the “Premises”).

Option B: The Premises consist of approximately [Square Footage] square feet as outlined in the attached floor plan (Exhibit A), including dining/seating areas, kitchen facilities, bar area [Yes/No], food prep stations, restrooms (public and staff), loading/unloading areas, and parking allocation [Number of Spaces].

Use of Premises

Option A: The Premises shall be used and occupied solely for the operation of a [Full-Service/Limited-Service] restaurant, specifically a [Dine-In/Fast Casual/Quick Service/Catering/Bar Service/Café]. Tenant shall obtain and maintain all necessary licenses, including but not limited to Tennessee Health Department permits, ABC liquor/beer permit (if applicable), and food service handler permits.

Option B:

Exclusive Use: Tenant shall have exclusive use of the [Patio/Outdoor Seating/Drive-Thru/Walk-Up Windows].

Non-Exclusive Use: Tenant shall have non-exclusive use of [Storage/Delivery Area/Refrigeration/Grease Traps/Dumpsters/Hood & Ventilation/Walk-In Units/Gas/Water/Main Entry Points].

Option C: Conversion to any non-food use or subleasing to another food concept is prohibited without Landlord’s prior written consent.

Term

Option A: The term of this Lease shall commence on [Start Date] and shall end on [End Date] (the “Term”).

Option B: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Renewal Term], provided Tenant gives Landlord written notice of its intention to renew at least [Number] days prior to the expiration of the initial Term or any renewal term.

Option C: In the event Tenant terminates the agreement before the completion of the term, tenant will pay the landlord [dollar amount] for early termination fee.

Rent

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

Option B: In addition to the base rent, Tenant shall pay Landlord percentage rent equal to [Percentage]% of Gross Sales (as defined below) exceeding [Dollar Amount] annually, payable [Frequency]. “Gross Sales” means all revenue from sales of goods or services at the Premises, before any deductions, excluding sales tax.

Option C: A late fee of [Dollar Amount] will be charged for payments received after [Number] days of the due date.

Option D: Rent shall be paid to Landlord at [Rent Payment Address] by [Method of Payment].

Security Deposit

Option A: Tenant shall deposit with Landlord a security deposit of [Dollar Amount] to be held by Landlord as security for the performance of Tenant’s obligations under this Lease.

Option B: The security deposit, less any deductions for damages or unpaid rent, will be returned to Tenant within [Number] days after the termination of this Lease and Tenant’s surrender of the Premises.

Utilities

Option A: Landlord shall be responsible for [List of Utilities].

Option B: Tenant shall be responsible for payment of the following utilities: [List of Utilities]. Tenant is responsible for all food service-related compliance and certifications.

Option C: Tenant is responsible for payment of utilities, including, but not limited to, water, gas, electric, waste removal, pest control, hood/exhaust cleaning, and grease trap maintenance.

Common Area Maintenance (CAM)

Option A: Tenant shall pay its proportionate share of Common Area Maintenance (CAM) costs, including property taxes, insurance, and maintenance of common areas, allocated as [Percentage]% of total CAM costs.

Option B: CAM fees shall be paid [Frequency] and are estimated to be [Dollar Amount] annually.

Repairs and Maintenance

Option A: Landlord shall be responsible for maintaining the structural elements of the Premises, including the roof, foundation, and external walls.

Option B: Tenant shall be responsible for maintaining the non-structural elements of the Premises, including kitchen equipment, ventilation, interior finishes, appliances, fire suppression systems, HVAC, and restroom fixtures, in compliance with all applicable Tennessee codes.

Option C: Landlord shall deliver the premises in [Vanilla Box/Turnkey] condition.

Option D: Tenant shall obtain all Certificates of Occupancy and Health Permits prior to opening the restaurant.

Tenant Improvements and Alterations

Option A: Tenant may make improvements and alterations to the Premises with Landlord’s prior written consent, which shall not be unreasonably withheld.

Option B: All plans and specifications for improvements must be submitted to Landlord for approval. All improvements must comply with ADA, Tennessee building and health codes, and local zoning ordinances.

Option C: At the expiration or termination of this Lease, Tenant shall [Restore the Premises to its original condition/Leave the improvements in place].

Insurance

Option A: Tenant shall maintain commercial general liability insurance with minimum limits of [Dollar Amount] per occurrence and property insurance covering Tenant’s personal property and improvements.

Option B: Landlord shall maintain property insurance covering the Premises.

Option C: If alcohol is served, Tenant must obtain liquor liability insurance compliant with the Tennessee ABC Board policy.

Option D: Both Landlord and Tenant must maintain worker's compensation insurance, as required by Tennessee law.

Compliance with Laws

Option A: Tenant shall comply with all applicable federal, state, and local laws and regulations, including but not limited to health and safety codes, ADA requirements, and fire codes.

Option B: Tenant shall be responsible for pest control, ventilation, grease management, fire suppression, and hood cleaning, and shall maintain all necessary permits and licenses.

Option C: Tenant will immediately notify the Landlord in the event of any critical health/safety code violations.

Default

Option A: If Tenant fails to pay rent when due or breaches any other term of this Lease, Landlord may provide Tenant with written notice of default and [Number] days to cure the default.

Option B: If Tenant fails to cure the default within the specified period, Landlord may terminate this Lease and pursue all available remedies under Tennessee law, including eviction.

Alcohol, Tobacco, and Gambling

Option A: The use of alcohol, tobacco, and vaping is permitted only in compliance with local ordinances and Tennessee ABC permit controls.

Option B: Gambling devices are prohibited.

Hours of Operation and Nuisance

Option A: Tenant’s hours of operation shall be [Hours of Operation].

Option B: Tenant shall operate the restaurant in a manner that does not create a nuisance to other tenants or surrounding properties, including excessive noise, odor, or trash.

Assignment and Subletting

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

Option B: Landlord will take into account the qualifications of the potential assignee with respect to successful restaurant operation.

Option C: The transferability of restaurant permits or licenses in Tennessee will be taken into account.

Surrender of Premises

Option A: Upon termination of this Lease, Tenant shall surrender the Premises in good condition, broom-clean, and free of all personal property, trade fixtures, and equipment.

Option B: Tenant will conduct a thorough cleaning, including grease removal, to local health sign-off standards.

Option C: Landlord shall return the security deposit, less any deductions, within [Number] days after Tenant’s surrender of the Premises.

Dispute Resolution

Option A: Any dispute arising out of or relating to this Lease shall be resolved through [Negotiation/Mediation/Arbitration] in [County] County, Tennessee.

Option B: This Lease shall be governed by and construed in accordance with the laws of the State of Tennessee.

Licenses and Permits

Option A: Tenant shall maintain all required licenses and permits during the term of this Lease and shall immediately notify Landlord of any suspension or revocation.

Option B: Landlord shall have the right to terminate this Lease if Tenant is unable to restore any suspended or revoked licenses within a reasonable time.

Access

Option A: Tenant shall permit access to the Premises to Tennessee regulatory authorities (health/fire/ABC) for inspections.

Option B: Landlord shall have the right to enter the Premises for necessary repairs and maintenance, upon reasonable notice to Tenant, except in cases of emergency.

Environmental and Hazardous Materials

Option A: Tenant shall be responsible for proper grease trap maintenance and disposal, and shall indemnify Landlord from any claims arising from the improper handling of hazardous materials.

Option B: Tenant will indemnify for foodborne illness, slip/falls, nuisance, or violation of health/safety ordinances.

Parking

Option A: Tenant’s employees and patrons shall be entitled to use [Number] parking spaces in the designated parking area.

Option B: Tenant is responsible for off-premises trash or noise complaints related to their business.

Continuous Operation

Option A: Tenant shall continuously operate the restaurant during the Term, with minimum hours of [Hours] per day and [Months] months per year.

Option B: Tenant shall continuously operate the restaurant during the Term and the term shall not be left vacant for more than [Number] days.

Notices

Option A: All notices under this Lease shall be in writing and shall be deemed given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above.

Option B: Electronic notices may also be accepted when both parties explicitly agree, and provided a read-receipt is received.

Entire Agreement

Option A: This Lease constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements.

Option B: This Lease may be amended only by a written instrument signed by both parties.

Binding Effect

Option A: This Lease shall be binding upon and inure to the benefit of the parties and their respective heirs, successors, and assigns.

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

[Landlord's Signature]

[Landlord's Printed Name]

[Tenant's Signature]

[Tenant's Printed Name]