Virginia restaurant lease agreement template

Virginia Restaurant Lease Agreement

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

Premises:

• Option A: Landlord leases to Tenant, and Tenant leases from Landlord, the premises located at [Street Address], Suite/Unit [Suite/Unit Number], City of [City], County of [County], Virginia, hereinafter referred to as the "Premises", consisting of approximately [Square Footage] square feet, as depicted on the floor plan attached hereto as Exhibit A.
• Option B: The Premises include the following: kitchen layout as per Exhibit B, dining area, [Bar/No Bar (delete one)], and [Patio/No Patio (delete one)] as designated in Exhibit C. Tenant shall have exclusive use of [List Exclusive Use Areas] and shared use of [List Shared Use Areas, e.g., restrooms, parking].

Use:

• Option A: The Premises shall be used solely for the operation of a restaurant specializing in [Cuisine Type].
• Option B: The Premises shall be used solely for the operation of a restaurant. Tenant shall not change the use without Landlord's prior written consent, which consent may be withheld in Landlord's sole discretion. Tenant shall not use the Premises for residential purposes or any other commercial use unrelated to the restaurant business.

Compliance with Laws:

• Option A: Tenant shall comply with all applicable laws, rules, and regulations of the Virginia Department of Health, the Virginia Alcoholic Beverage Control (ABC) laws, local fire codes, food safety ordinances, building and zoning codes, and shall maintain all required licenses and permits, including but not limited to occupancy certificates, food service licenses, ABC licenses (if applicable), entertainment permits (if applicable), and permits for outdoor seating/patio areas (if applicable).
• Option B: Tenant is responsible for obtaining and maintaining permits for grease trap maintenance and proper disposal of cooking oils. Tenant shall provide proof of compliance to Landlord upon request.

Landlord-Provided Equipment:

• Option A: Landlord provides the following equipment: [List Equipment, e.g., exhaust hood, walk-in cooler, grease interceptor, fire suppression system, HVAC, dishwashing station, cooking line, bar fixtures].
• Option B:
  • Landlord shall maintain the structural integrity of the equipment listed in Option A.
  • Tenant is responsible for the routine maintenance and repair of all equipment listed in Option A, unless otherwise agreed upon in writing. Tenant is responsible for the repair and/or replacement of equipment resulting from misuse or negligence.

Term:

• Option A: The term of this Lease shall be [Number] years, commencing on [Commencement Date] and expiring on [Expiration Date].
• Option B: Tenant shall have the option to renew this Lease for one (1) additional term of [Number] years, provided Tenant provides Landlord with written notice of its intent to renew at least [Number] days prior to the expiration date of the initial term. The rent for the renewal term shall be as specified in Section 6.
• Option C: Continuous Operation: Tenant shall continuously operate the restaurant business during normal business hours, which are [Days and Hours of Operation].

Rent:

• Option A: Base Rent: Tenant shall pay Landlord base rent of [Dollar Amount] per month, payable in advance on the first day of each month, commencing on [Rent Commencement Date].
• Option B: Security Deposit: 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 C: Rent Escalation: The base rent shall increase by [Percentage]% on each [Anniversary Date].
• Option D: Percentage Rent: In addition to the base rent, Tenant shall pay Landlord percentage rent equal to [Percentage]% of Tenant's gross sales exceeding [Dollar Amount] per year. Tenant shall provide Landlord with a monthly statement of gross sales within [Number] days of the end of each month.
• Option E: Late Fees: If rent is not received within [Number] days of the due date, a late fee of [Dollar Amount] shall be assessed.
• Option F: Payment Method: Rent shall be paid by [Payment Method, e.g., check, electronic transfer] to [Payment Instructions].

Utilities & Expenses:

• Option A: Tenant shall be responsible for payment of all utilities, including water, gas, electricity, sewer, trash, and recycling.
• Option B: Tenant shall be responsible for the cost of pest control and grease trap cleaning.
• Option C: Common Area Maintenance (CAM): Tenant shall pay its pro rata share of CAM expenses, which shall be determined by dividing the square footage of the Premises by the total leasable square footage of the property. Landlord shall provide Tenant with an annual statement of CAM expenses.
• Option D: Real Estate Taxes: [Landlord/Tenant (delete one)] shall be responsible for payment of real estate taxes.
• Option E: Insurance: See Section 9 for specific insurance requirements.

Alterations and Improvements:

• Option A: Tenant shall not make any alterations or improvements to the Premises without Landlord's prior written consent.
• Option B: Any alterations or improvements shall comply with all applicable laws, including ADA accessibility requirements and health codes.
• Option C: At the end of the Lease term, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, unless otherwise agreed upon in writing.
• Option D: Landlord approval is required for any structural work.

Repair and Maintenance:

• Option A: Landlord shall be responsible for maintaining the structural integrity of the building, including the roof and major systems.
• Option B: Tenant shall be responsible for maintaining the interior of the Premises, including kitchen equipment, hood system, interior finishes, and restrooms.
• Option C: Tenant shall promptly report any fire or other casualty to Landlord.
• Option D: Landlord shall have the right to access the Premises for repairs and inspections with reasonable notice, except in cases of emergency.

Insurance:

• Option A: Tenant shall maintain commercial general liability insurance with minimum coverage of [Dollar Amount] per occurrence.
• Option B: If alcohol is served, Tenant shall maintain liquor liability insurance with minimum coverage of [Dollar Amount].
• Option C: Tenant shall maintain property/casualty insurance for its inventory and equipment.
• Option D: Tenant shall provide Landlord with certificates of insurance evidencing the required coverage.
• Option E: Landlord shall maintain insurance on the building.

Fire Safety:

• Option A: Tenant shall comply with all applicable fire safety codes.
• Option B: Tenant shall maintain the fire suppression/hood system in accordance with manufacturer's recommendations and applicable regulations.
• Option C: Tenant is responsible for regular inspections and maintenance of fire extinguishers, smoke alarms, and emergency exits.

Default and Remedies:

• Option A: Tenant shall be in default if it fails to pay rent when due, engages in illegal activity on the Premises, fails to operate the restaurant business, or violates any other material term of this Lease.
• Option B: If Tenant is in default, Landlord shall have the right to terminate the Lease, re-enter the Premises, and re-let the Premises.
• Option C: Landlord shall have a lien on Tenant's personal property located on the Premises to secure payment of rent.

Move-In and Move-Out:

• Option A: Tenant shall accept the Premises in its "as is" condition.
• Option B: At the end of the Lease term, Tenant shall remove all of its personal property and equipment from the Premises.
• Option C: Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted.
• Option D: The security deposit shall be returned to Tenant within [Number] days of the end of the Lease term, less any deductions for damages or unpaid rent.

Subleasing and Assignment:

• Option A: Tenant shall not sublease the Premises or assign this Lease without Landlord's prior written consent.
• Option B: Any sublease or assignment shall comply with all applicable laws, including health codes and business registration requirements.

Utilities Shut-Off and Continuous Operation:

• Option A: Tenant shall not discontinue utility services to the Premises without Landlord's prior written consent.
• Option B: Tenant shall continuously operate the restaurant business during the term of this Lease.

Parking and Waste Management:

• Option A: Tenant shall be entitled to [Number] parking spaces.
• Option B: Tenant shall be responsible for the proper disposal of all waste and recycling.
• Option C: Tenant shall maintain the grease trap in accordance with applicable regulations.

Dispute Resolution:

• Option A: Any dispute arising out of or relating to this Lease shall be resolved through negotiation and mediation.
• Option B: If mediation is unsuccessful, the dispute shall be resolved through arbitration or litigation in the courts of the Commonwealth of Virginia.
• Option C: This Lease shall be governed by the laws of the Commonwealth of Virginia.

Compliance with Future Regulations:

• Option A: Tenant shall comply with all future changes in local, county, and state regulations.
• Option B: Landlord shall cooperate with Tenant in obtaining and renewing all necessary licenses and permits.

Landlord's Right of Entry:

• Option A: Landlord shall have the right to enter the Premises for inspection, repairs, showing to prospective purchasers or tenants, and emergencies, with reasonable notice, except in cases of emergency.

Taxes:

• Option A: Tenant shall be responsible for collecting and remitting all applicable business, meal, entertainment, sales, and BPOL taxes as required by Virginia law.

Business Interruption:

• Option A: In the event of a business interruption due to force majeure or public health emergency, the parties shall negotiate in good faith to determine an appropriate abatement or modification of Lease obligations.

Notices:

• Option A: All notices shall be served in accordance with Virginia law, at the addresses specified in this Agreement, by registered mail, courier, or statutory acceptable means.

Environmental Compliance:

• Option A: Tenant shall comply with all applicable environmental laws, including regulations regarding FOG (Fats, Oils, and Grease) management and hazardous materials disposal.

ADA Accessibility:

• Option A: Tenant shall ensure that all alterations and improvements comply with the Americans with Disabilities Act (ADA) and Virginia-specific accessibility codes.

Condemnation:

• Option A: In the event of condemnation or eminent domain, the parties shall negotiate in good faith regarding the allocation of any compensation received.

Amendments:

• Option A: Any amendment or modification of this Lease shall be in writing and signed by both parties.

Entire Agreement:

• Option A: This Lease constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.
• Option B: Prevailing Party: In the event of litigation, the prevailing party shall be entitled to recover its reasonable attorney's fees.
• Option C: Severability: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

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

[Landlord Signature]

[Landlord Printed Name]

[Tenant Signature]

[Tenant Printed Name]