Texas restaurant lease agreement template

TEXAS RESTAURANT LEASE AGREEMENT

This Restaurant Lease Agreement ("Agreement") is made and entered into as of [Date], by and between [Landlord Name], residing at [Landlord Address] ("Landlord"), and [Tenant Name], residing at [Tenant Address] ("Tenant").

1. Premises

Option A: Landlord leases to Tenant, and Tenant leases from Landlord, the premises located at [Property Address], being a space of approximately [Square Footage] square feet (the "Premises") as outlined in Exhibit A attached hereto (Floor Plan).

Option B: The Premises includes the following specific areas: Kitchen, Dining Area, Bar Area, Storage Area, Restrooms, and [Outdoor Seating, if any]. Shared use areas include [Shared Use Areas].

2. Use of Premises

Option A: The Premises shall be used solely for the operation of a [Restaurant Type] restaurant and related food service activities, and for no other purpose.

Option B: Tenant shall not change the use of the Premises without Landlord's prior written consent. Subleasing or assignment of this Lease is prohibited without Landlord's prior written consent.

Option C: Tenant shall comply with all applicable Texas state and local food service, health, fire, and occupancy codes, and shall obtain and maintain all required permits and licenses.

3. Permits and Licenses

Option A: Tenant is responsible for obtaining and maintaining all necessary permits and licenses to operate the restaurant, including but not limited to building and health department permits, certificates of occupancy, and alcohol sales and service permits in accordance with Texas Alcoholic Beverage Commission (TABC) rules (if applicable).

Option B: Loss of required licenses or permits shall be grounds for termination of this Lease at Landlord's option.

4. Grease Traps and Waste Disposal

Option A: Tenant is responsible for the proper maintenance and disposal of grease, food waste, and other restaurant-related waste in compliance with all applicable regulations. This includes proper grease trap maintenance.

Option B: Landlord is responsible for the initial installation of grease traps; Tenant is responsible for ongoing maintenance and cleaning.

5. ADA and Texas Accessibility Standards Compliance

Option A: Tenant shall ensure the Premises comply with the Americans with Disabilities Act (ADA) and Texas Accessibility Standards.

Option B: Landlord warrants that the Premises currently complies with ADA and Texas Accessibility Standards.

6. Lease Term

Option A: The term of this Lease shall commence on [Start Date], and shall expire on [End Date] (the "Term").

Option B: Tenant shall have the option to renew this Lease for [Number] additional [Years/Months] term(s), provided Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the initial Term.

7. Rent

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

Option B: In addition to the base rent, Tenant shall pay Landlord [Percentage]% of its gross sales (the "Percentage Rent"). "Gross Sales" shall be defined as all revenue generated from the operation of the restaurant. Tenant shall provide Landlord with monthly sales reports by [Date] of the following month, and Landlord shall have the right to audit such reports.

Option C: A late fee of [Dollar Amount] will be assessed for any rent payment received more than [Number] days after the due date.

8. Security Deposit

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

Option B: The security deposit shall be returned to Tenant within [Number] days after the expiration or termination of this Lease, less any amounts necessary to cover damages to the Premises or unpaid rent.

9. Insurance

Option A: Tenant shall maintain general liability insurance, property insurance, business interruption insurance, product liability insurance, and food contamination insurance, with coverage amounts of at least [Dollar Amount] per occurrence. Landlord shall be named as an additional insured on Tenant's general liability policy.

Option B: Tenant must provide proof of insurance coverage to Landlord before the commencement of the lease.

10. Utilities

Option A: Tenant shall be responsible for paying all utility charges for the Premises, including water, gas, electricity, HVAC maintenance, trash collection, and pest control.

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

11. Repairs and Maintenance

Option A: Tenant shall be responsible for maintaining the Premises in good repair and condition, including all restaurant-specific fixtures and equipment, plumbing, exhaust, fire suppression systems, and grease traps.

Option B: Landlord shall be responsible for maintaining the building's structural elements, common areas, and parking lot.

12. Tenant Improvements

Option A: Tenant may make improvements to the Premises with Landlord's prior written consent, which consent shall not be unreasonably withheld. All improvements shall be at Tenant's sole expense.

Option B: At the expiration or termination of this Lease, all fixtures and improvements made by Tenant shall become the property of Landlord, unless otherwise agreed in writing.

13. Landlord's Entry

Option A: Landlord shall have the right to enter the Premises for inspection, repair, or showing to prospective tenants, upon providing Tenant with reasonable notice, except in cases of emergency.

Option B: Reasonable notice shall be defined as [Number] hours.

14. Environmental Compliance

Option A: Tenant shall comply with all applicable environmental laws and regulations, including those relating to hazardous materials, food safety, and the proper use of cleaning chemicals.

Option B: Tenant is prohibited from storing hazardous materials on the property.

15. Zoning and Ordinances

Option A: Tenant shall comply with all applicable local zoning, signage, outdoor seating, and noise ordinances.

Option B: The landlord confirms that the property is zoned for restaurant use.

16. Default

Option A: If Tenant fails to pay rent when due, or otherwise defaults on any of its obligations under this Lease, Landlord may terminate this Lease after providing Tenant with written notice and an opportunity to cure the default.

Option B: Landlord may pursue all available remedies under Texas law.

17. Indemnification

Option A: Tenant shall indemnify and hold Landlord harmless from any and all claims, losses, damages, and liabilities arising out of Tenant's use of the Premises.

18. Governing Law

Option A: This Lease shall be governed by and construed in accordance with the laws of the State of Texas. Venue for any legal action shall be in [County Name] County, Texas.

19. Notices

Option A: All notices required or permitted under this Lease 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.

20. Entire Agreement

Option A: This Lease constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

21. Texas Property Code and DTPA Compliance

Option A: This lease is intended to comply with the Texas Property Code and relevant provisions of the Deceptive Trade Practices Act.

Option B: Landlord acknowledges that it has provided all property disclosures required by Texas statute, including flood zone disclosures.

22. Signage

Option A: Tenant shall have the right to install signage and exterior branding as permitted by local ordinances, subject to Landlord's prior written approval of the design and placement.

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

Landlord:

[Landlord Name]

[Landlord Signature]

Tenant:

[Tenant Name]

[Tenant Signature]