Washington restaurant lease agreement template

Washington Restaurant Lease Agreement

This Washington 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], hereinafter referred to as "Landlord," and [Tenant's Full Legal Name], a [Tenant's Business Structure, e.g., Washington Corporation, LLC], with a principal place of business at [Tenant's Business Address], hereinafter referred to as "Tenant."

1. Premises

• The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises (the “Premises”) located at [Property Address], including unit/suite number [Suite/Unit Number].
  • Option A: The Premises are described as follows: [Detailed Description of Premises, including total square footage (e.g., 2,500 square feet), layout, kitchen area, dining area, storage, restroom, bar/lounge, exterior signage areas, outdoor seating/patio (if applicable), exclusive-use and common-use spaces].
  • Option B: See Exhibit A attached hereto for a detailed description and floor plan of the Premises.

2. Permitted Use

• The Premises shall be used and occupied by the Tenant solely for the purpose of operating a restaurant business, including:
  • Option A: Dine-in service.
  • Option B: Take-out service.
  • Option C: Catering services.
  • Option D: Service of alcoholic beverages, subject to Tenant obtaining and maintaining all required licenses from the Washington State Liquor and Cannabis Board (WSLCB).
• Tenant shall comply with all applicable local health and safety codes, Washington State Department of Health regulations, WSLCB regulations (if applicable), sanitation, food handling, waste disposal, grease trap and vent hood requirements, and Tacoma/Puget Sound Clean Air Agency regulations (if applicable).

3. Access

• Exclusive Access:
  • The Tenant shall have exclusive access to: [List of areas with exclusive access, e.g., dining area, kitchen, restrooms].
• Shared Access:
  • The Tenant shall have shared access to: [List of areas with shared access, e.g., loading docks, parking areas, back-of-house spaces, and refuse/recycling storage. Be specific regarding days/times and any associated fees].

4. Fixtures and Equipment

• The following fixtures and equipment are included in this lease: [Detailed list of all fixtures, kitchen equipment, and hood systems included in the lease, including model numbers and condition. E.g., walk-in refrigerator (Model X), 6-burner range (Model Y), exhaust hood (Model Z)].
  • Option A: Tenant shall be responsible for the maintenance and repair of the fixtures and equipment.
  • Option B: Landlord shall be responsible for the maintenance and repair of the following fixtures and equipment: [List specific equipment]. Tenant shall be responsible for the maintenance and repair of all other fixtures and equipment.
• Tenant is responsible for ensuring that all equipment meets current code requirements and is properly inspected.

5. Lease Term

• The term of this Lease shall be for a period of [Number] years, commencing on [Commencement Date] (the "Commencement Date"). The Rent Commencement Date shall be [Rent Commencement Date].
  • Option A: Rent Commencement Date is the same as the Commencement Date.
  • Option B: Rent Commencement Date shall be [Number] days following the Commencement Date, to allow for build-out, during which time Tenant shall have early occupancy for build-out purposes, and only pay for utilities.

6. Rent

• The base rent for the Premises shall be [Dollar Amount] per month, payable in advance on the first day of each month.
  • Option A: Base rent is calculated at [Dollar Amount] per square foot per year.
  • Option B: Base rent shall be subject to annual increases of [Percentage] percent.
  • Option C: Base rent shall be adjusted annually based on the Consumer Price Index (CPI) for the Seattle-Tacoma-Bellevue, WA area.

7. Security Deposit

• The Tenant shall deposit with the Landlord a security deposit in the amount of [Dollar Amount], to be held by the Landlord as security for the Tenant's performance of its obligations under this Lease.
  • Option A: The security deposit shall be returned to the Tenant within [Number] days after the termination of this Lease, less any amounts necessary to cover damages to the Premises or unpaid rent.
  • Option B: Landlord can utilize the security deposit as allowed by Washington state law, following notice to tenant.

8. Personal Guarantee

• Option A: This Lease shall not be personally guaranteed.
• Option B: This Lease shall be personally guaranteed by [Guarantor's Full Legal Name], residing at [Guarantor's Address]. The Guarantor's obligations are outlined in Exhibit B.

9. Renewal/Termination Options

• Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the expiration of the then-current term.
• Option B: Early termination is permitted under the following conditions: [Specify conditions for early termination, e.g., payment of a termination fee equal to X months' rent].

10. Rent Escalation

• Option A: Rent shall increase annually by [Percentage]%.
• Option B: Rent shall be adjusted annually based on the Consumer Price Index (CPI) for the Seattle-Tacoma-Bellevue, WA area.
• Option C: Rent shall be adjusted to the current market rate determined by an independent appraiser.

11. Payment Method

• Rent and all other payments due under this Lease shall be paid by [Payment Method, e.g., check, electronic funds transfer].
  • Option A: Payments shall be made payable to [Payee Name] and mailed to [Mailing Address].
  • Option B: Tenant shall pay Landlord via ACH transfer to the following account: [Bank Name, Account Number, Routing Number].

12. Late Fees

If rent is not received by the [Day] day of the month, a late fee of [Dollar Amount] shall be assessed. Additionally, interest shall accrue on the unpaid balance at a rate of [Percentage]% per annum.

13. Triple Net (NNN) Fees and CAM

• In addition to the base rent, the Tenant shall be responsible for its pro rata share of all real estate taxes, insurance, and common area maintenance (CAM) expenses (collectively, "NNN Expenses").
  • Option A: Tenant's pro rata share shall be [Percentage]% of the total NNN Expenses.
  • Option B: CAM charges include, but are not limited to: [List specific CAM charges, e.g., landscaping, parking lot maintenance, security].
• The Landlord shall provide the Tenant with a detailed annual accounting of all NNN Expenses.
• Tenant shall be responsible for the following utilities: [List utilities, e.g., water/sewer, gas, electricity, garbage, recycling].
• Tenant shall also be responsible for the following restaurant-specific services: [List restaurant-specific services, e.g., grease trap cleaning, pest control, fire suppression maintenance, and hood/duct cleaning].

14. Compliance with Laws

Tenant shall comply with all applicable Washington commercial real estate law, local zoning and business licensing regulations, state and municipal food code and fire safety standards, and reasonable Landlord rules. Landlord is responsible for code compliance for building systems (fire alarms, egress, ADA).

15. Licenses and Permits

Tenant shall obtain and maintain all necessary restaurant business licenses, health permits, food service, and liquor licenses (if applicable), and shall provide current copies to Landlord.

16. Insurance

• Tenant shall maintain the following insurance policies:
  • Option A: Property and liability insurance with minimum coverage of [Dollar Amount].
  • Option B: Liquor liability insurance (if applicable) with minimum coverage of [Dollar Amount].
  • Option C: Fire and equipment insurance.
• Landlord shall be named as an additional insured on Tenant's liability insurance policy.

17. Tenant Improvements

• Tenant may make improvements to the Premises subject to Landlord's prior written approval and all required Washington/local permits and inspections.
  • Option A: Any alterations shall be at Tenant's sole cost and expense.
  • Option B: At the end of the lease term, Tenant shall restore the Premises to its original condition, except for approved alterations.

18. Repair and Maintenance

• Tenant shall be responsible for the daily and periodic repair and maintenance of: [List responsibilities, e.g., HVAC, plumbing, refrigeration, kitchen hood, pest control].
• Landlord shall be responsible for structural repairs.
• Tenant shall immediately report any major building issues or code violations to Landlord.

19. Safety, Waste & Environmental Compliance

Tenant shall comply with all safety regulations (fire suppression, smoke detectors, egress) and waste and recycling practices (including grease trap maintenance logs and regulatory reporting). Tenant will adhere to all environmental compliance regulations.

20. Signage

Tenant shall have the right to use: [Specify signage rights, e.g., outdoor signage, menu boards, building facade], subject to municipal codes and any design review board standards.

21. Subleasing and Assignment

Tenant shall not sublease or assign this Lease without Landlord's prior written approval.

22. Right of First Refusal

• Option A: Tenant shall have the right of first refusal for expansion or sale of the Premises.
• Option B: Tenant shall not have any right of first refusal.

23. Delivery, Moving-In, and Moving-Out

Tenant shall comply with Landlord's delivery, moving-in, and moving-out protocols. Tenant shall comply with Washington State security deposit act (RCW 59.18.260-280) for the security deposit. Tenant is responsible for removing all personal property.

24. Dispute Resolution

• Any disputes arising under this Lease shall be resolved through:
  • Option A: Attempts to resolve directly between the parties.
  • Option B: Washington State mediation.
  • Option C: Commercial arbitration.
  • Option D: Litigation in King County Superior Court or the relevant local jurisdiction.

25. Default and Cure

The statutory notice periods for default and cure shall apply. Landlord shall have all remedies available at law or in equity for Tenant's breach.

26. Indemnification

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

27. Waiver of Subrogation

Tenant hereby waives any right of subrogation against Landlord for any loss or damage covered by Tenant's insurance.

28. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Lease due to force majeure events.

29. Lender Access/Estoppel

Tenant shall provide Landlord's lender with access to the Premises and shall execute an estoppel certificate upon request.

30. Landlord Right of Entry

Landlord shall have the right to enter the Premises for inspection, repairs, or other reasonable purposes, with reasonable notice to Tenant, except in emergencies.

31. Adjoining Tenant Spaces

Landlord reserves the right to use adjoining tenant spaces as necessary.

32. Non-Disturbance

Landlord shall provide Tenant with non-disturbance protection.

33. Employment & ADA Compliance

Tenant shall comply with all relevant Washington state and local employment postings, food handler permits, wage standards, and ADA and public accommodation obligations.

34. Tax Issues

Tenant acknowledges responsibility for leasehold excise tax reporting (if applicable), personal property tax on equipment, and compliance with sales tax and BOE regulations.

35. Landlord Obligations

Landlord shall be responsible for: [List landlord obligations, e.g., safety and power capacity upgrades to support restaurant load, grease interceptor maintenance (if shared system), and pest abatement in multi-unit buildings].

36. Participation in Marketing/Events

• Option A: Tenant shall participate in marketing, security, or events if within a food hall or mixed-use space.
• Option B: Tenant is not required to participate in marketing or events.

37. Public Health/Emergency Orders

This lease is subject to flexibility clauses reflecting ongoing public health/emergency orders (e.g., indoor dining restrictions) and tenant relief options in unforeseen closures (COVID-19-type force majeure).

38. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of Washington.

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

____________________________
[Landlord's Full Legal Name], Landlord

____________________________
[Tenant's Full Legal Name], Tenant

Exhibit A: Detailed Description and Floor Plan of the Premises

Exhibit B: Personal Guarantee (if applicable)