Vermont restaurant lease agreement template

Vermont 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").

WHEREAS, Landlord owns the property located at [Property Address], including the building and premises suitable for restaurant use; and

WHEREAS, Tenant desires to lease said premises for the purpose of operating a restaurant business in compliance with Vermont state laws and local ordinances.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

Premises:

• Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at [Property Address], consisting of approximately [Square Footage] square feet, including [Description of Kitchen, Dining Area, Restrooms, Storage, Offices, Exterior Features].
• Option B: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, a portion of the building located at [Property Address], specifically Suite/Unit [Unit Number], as outlined on Exhibit A attached hereto, consisting of approximately [Square Footage] square feet.

Use of Premises:

• Option A: The Premises shall be used solely for the purpose of operating a restaurant, food service, and all lawful ancillary activities including on-premises food and alcohol sales, in compliance with all applicable Vermont state and local laws and regulations.
• Option B: The Premises shall be used solely for the purpose of operating a [Specific Type of Restaurant, e.g., Italian Restaurant] restaurant, food service, and all lawful ancillary activities including on-premises food and alcohol sales. The Tenant shall not use the premises for any other purpose without the prior written consent of the Landlord.

Permits and Licenses:

• Option A: Tenant shall be solely responsible for obtaining, maintaining, and renewing all necessary permits and licenses required to operate a restaurant business on the Premises, including but not limited to a Vermont food service establishment license, a liquor license (if applicable), and local business tax registrations. Copies of these licenses are attached as Exhibits B, C, and D (if applicable).
• Option B: Landlord shall assist the Tenant in obtaining the necessary permits and licenses. The costs associated with obtaining these licenses will be the responsibility of the [Tenant/Landlord].

Lease Term:

• Option A: The term of this Lease shall be for a period of [Number] years, commencing on [Start Date] and ending on [End Date].
• Option B: The term of this Lease shall be a month-to-month tenancy commencing on [Start Date]. Either party may terminate this Lease by providing [Number] days' written notice to the other party.
• Option C: Renewal Option: Tenant shall have the option to renew this Lease for an additional term of [Number] years, provided that Tenant gives Landlord written notice of its intention to renew at least [Number] months prior to the expiration of the initial term. The rental rate for the renewal term shall be [Rental Rate or Method of Determining Rental Rate].

Rent:

• Option A: Tenant shall pay Landlord a monthly base rent of [Dollar Amount], payable in advance on the [Day] day of each month, commencing on [Start Date].
• Option B: In addition to the base rent, Tenant shall also pay [Percentage]% of gross sales as additional rent, payable [Frequency, e.g., monthly] on [Day] of the month.
• Option C: The rent shall be increased annually by [Percentage]% or according to the Consumer Price Index (CPI), whichever is greater.

Security Deposit:

• Option A: Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount], which shall be held by Landlord as security for the performance of Tenant's obligations under this Lease. The security deposit shall be returned to Tenant within [Number] days after the termination of this Lease, less any deductions for damages to the Premises, unpaid rent, or cleaning costs as permitted under Vermont law (9 V.S.A. § 4461).
• Option B: Landlord shall hold the security deposit in an escrow account at [Bank Name], with interest accruing to the benefit of the [Landlord/Tenant].

Utilities:

• Option A: Tenant shall be responsible for paying all utilities used on the Premises, including but not limited to electricity, gas, water, sewer, and trash removal.
• Option B: Landlord shall be responsible for paying for water and sewer. Tenant shall be responsible for all other utilities.

Maintenance and Repairs:

• Option A: Tenant shall be responsible for maintaining the interior of the Premises in good repair and condition, including but not limited to cleaning, painting, and repairing fixtures and equipment. Tenant is responsible for regular grease trap maintenance.
• Option B: Landlord shall be responsible for maintaining the roof, exterior walls, and structural components of the Premises.
• Option C: Landlord is responsible for HVAC repair and maintenance. Tenant is responsible for the cleanliness and filter replacement.

Tenant Improvements:

• Option A: Tenant shall not make any alterations or improvements to the Premises without the prior written consent of Landlord.
• Option B: Tenant may make reasonable alterations and improvements to the Premises with Landlord's written consent, which shall not be unreasonably withheld. All improvements shall become the property of the Landlord upon termination of this Lease.

Insurance:

• Option A: Tenant shall maintain commercial general liability insurance with a minimum coverage of [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate, naming Landlord as an additional insured. Tenant shall also maintain property insurance covering the Premises and Tenant's personal property.
• Option B: Tenant is required to maintain liquor liability (Dram Shop) insurance in accordance with Vermont state law.
• Option C: Tenant is responsible for worker's compensation insurance as required under Vermont law.

Sublease and Assignment:

• Option A: Tenant shall not sublease the Premises or assign this Lease without the prior written consent of Landlord, which may be withheld in Landlord's sole discretion.
• Option B: Tenant may assign this lease with Landlord's consent, not to be unreasonably withheld, provided the assignee demonstrates the financial and operational capacity to run a restaurant business.

Environmental Compliance:

• Option A: Tenant shall comply with all applicable environmental laws and regulations, including those relating to the disposal of grease, oil, and other restaurant waste. Tenant shall be responsible for all costs associated with complying with such laws and regulations.
• Option B: Tenant is responsible for participating in local composting and recycling programs as mandated by the municipality.

Default:

• Option A: If Tenant fails to pay rent when due or otherwise breaches this Lease, Landlord may terminate this Lease upon providing Tenant with written notice and an opportunity to cure the default as required by Vermont law.
• Option B: If the Tenant violates any Vermont health code, this constitutes an immediate breach of this lease agreement, and the Landlord may pursue legal remedies as permissible under Vermont law.

Governing Law:

• Option A: This Lease shall be governed by and construed in accordance with the laws of the State of Vermont. Venue for any legal action arising out of this Lease shall be in [County] County, Vermont.
• Option B: All disputes arising from this lease will first be subject to mediation within Vermont before pursuing legal action.

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 parties at their respective addresses set forth above.
• Option B: Email notifications can be given for routine communication; however, all legal notices must be delivered by certified mail.

Indemnification:

• Option A: Tenant shall indemnify and hold Landlord harmless from and against any and all claims, losses, damages, and expenses arising out of or relating to Tenant's use of the Premises.
• Option B: Landlord is not liable for any tenant or customer injury related to food safety.

ADA Compliance:

• Option A: Tenant shall be responsible for complying with all applicable requirements of the Americans with Disabilities Act (ADA).
• Option B: Landlord shall be responsible for ensuring the property has basic ADA compliance (e.g. ramp access to the entrance).

Taxes:

• Option A: Tenant shall be responsible for the collection and payment of all applicable sales taxes, alcohol excise taxes, and Vermont meals and rooms tax.
• Option B: The tax clause reflects local restaurant business practices and compliance with all Vermont tax regulations.

Landlord's Entry:

• Option A: Landlord shall have the right to enter the Premises at reasonable times and upon reasonable notice to Tenant for the purpose of inspecting the Premises or making necessary repairs. Except in cases of emergency, Landlord shall provide Tenant with at least 24 hours' notice prior to entry.
• Option B: Landlord cannot enter the premises during peak restaurant hours, unless for a true emergency that could cause structural damage to the property.

This Agreement 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.

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

[Landlord Name]

By: [Landlord Signature]

Title: Landlord

[Tenant Name]

By: [Tenant Signature]

Title: Tenant