Restaurant Lease Agreements

Summary

This practice note discusses key considerations when negotiating a restaurant lease including (1) initial steps, (2) the term sheet, (3) due diligence and lease contingencies, (4) key lease provisions, and (5) special considerations for restaurants located in mixed-use projects, shopping centers, and hotels. This note also briefly addresses certain COVID-19 pandemic lease considerations. This practice note is written from the tenant's perspective, but discusses issues that are vital to the landlord and its counsel as well. Counsel to both parties should consult local counsel if they are not familiar with relevant local laws, regulations, customs and practices relating to the leasing process. These can vary greatly, sometimes with major substantive consequences.