3 Provisions to Consider When Leasing a Restaurant
It is necessary to seek the services of a property lawyer when you want to rent any premises. Do you have intentions of leasing a restaurant in a commercial building that has just been constructed? Below are some helpful provisions that your lawyer should include in the lease agreement that you negotiate with the landlord.
Exclusive Use Provisions
You should negotiate with the landlord and include exclusive use provisions in the lease agreement that you sign. Such a provision will help to protect you against any damaging competition that can arise in case the landlord leases another section of the property to someone who is in the same business. For example, the exclusive use provision should state that the landlord will not lease another unit of the property to someone who wants to start a Chinese food restaurant in the same building. Monetary penalties can also be stated to ensure that you will be given adequate compensation in case the landlord breaches the exclusive use clause of the lease agreement.
It is also wise to include a provision that permits you to conduct some alterations to the property in accordance with the needs of your restaurant. For instance, the lease agreement should stipulate the procedure that should be followed in case you want to alter the landscape (widening the parking lot, for example) or the building (adding a kitchen extension, for example) to meet the needs of your customers. In this way, you will be sure that you can adapt your restaurant to the evolving business landscape without undue hindrances from the landlord.
A time may come when you may want to get another person or management group to run your restaurant. Make sure that the lease agreement has provisions that cater for such an eventuality. For example, you can include a clause that permits you to appoint someone else to run your restaurant as long as you remain accountable for meeting all the obligations of the business to the landlord. Such a provision can give you the flexibility to change the management of the restaurant without running into any legal hurdles from the landlord.
A lease for a restaurant is a vital contract that should be prepared carefully to address the needs of all the parties involved. Hire an experienced property/business lawyer to draft this agreement so that all the important aspects of the transaction are covered.