Restaurant lease agreement

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Document overview

This letting agreement is for any property with a commercial kitchen. That is, a restaurant, café, delicatessen or fast food outlet. The lease allows for the property to have space used for other business purposes too, such as offices above. Features: guarantor; break provision; rent review options; option for assignment; sub-letting not allowed; draft agreement for security deposit; schedule covering kitchen and cooking equipment; draft agreement for security deposit; schedule covering kitchen and cooking equipment.
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  • Length:25 pages (7200 words)
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About this restaurant lease

This agreement should be used to let a food retail unit such as a restaurant, cafe, delicatessen, or fast food outlet. It may be part of a parade of other shops owned by other landlords, or it may be stand-alone.

The chip shop, restaurant or cafe may have additional space used by the tenant for other business purposes, such as offices or storage.

This is a professionally drawn, very comprehensive lease with massive legal protection for the landlord including a long menu of “do’s” and “don’ts”.

This lease is not a compromise between the interests of the parties. It prefers the landlord’s interest. We think that is the best start point. If you wish to make concessions to your tenant, that is fine, but we want you have those choices.

It includes service charge provisions to provide 100% recovery of service costs.

Similar commercial lease agreements

If the property will be used as a standard shop, use Lock up shop lease agreement or Business lease: shop in parade. The latter contains service charge recovery provisions.

Key features

Plain English is used throughout except where it is necessary to use legal terms common in this field of law.

The key features of this business lease can be summarised as:

  • standard guarantor
  • options for transfer or assignment to another party
  • sub-letting forbidden
  • option to include a break clause for premature termination by the tenant
  • a choice of options for rent reviews
  • schedule covering use of a commercial kitchen

The law in this restaurant lease

Business lease law is regulated primarily by the Lease of Land Act 1969. If the term of this lease is longer than ten years it must be registered at the Deed Registry Office at:

http://www.deeds.gov.za/ITSODeedsWebB/deedsweb/welcome.jsp

Document contents

This restaurant lease is comprehensive, providing alternative choices for important decisions.

The contents include 26 provisions and 3 schedules covering:

  • rent: period, amount, other payments, interest on overdue rent, periodic review
  • condition and repair
  • tenant's positive obligations
  • restrictions on tenant: prohibited activities on the property
  • signs and advertisements
  • assignment of the lease
  • indemnities by the tenant
  • security deposit
  • insurance
  • access for landlord
  • guarantor
  • termination: default notice by landlord; provision for premature termination (a break clause)
  • forfeiture
  • Schedule 1: rights reserved
  • Schedule 2: draft agreement for a security deposit
  • Schedule 3: kitchen and cooking equipment
Sample restaurant lease agreementFront cover

Recent reviews

Useful Starting Point
29 August 2022
The response to my enquiry was instant and provided a good basis for what I needed along with clear instructions, thank you,
Jack Poutsma
Review of the New Zealand version
Just What I Needed
03 September 2017
Very good. I needed an agreement at short notice and found this surprisingly helpful. Plain english is better than Victorian english.
Cathal Gaffney
Review of the Ireland version
Exactly what I wanted
13 January 2014
Great, was exactly what I was looking for.
Neil O Donnell
Review of the Ireland version

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