Tenant's Contingency Clauses
(Plan Approval and Licenses, Restaurant Lease) (Pro-Landlord)

Summary

This is a template for tenant's contingency clauses that are for use in a restaurant lease and allow the tenant to terminate the lease if it fails to obtain certain licenses and permits necessary to perform work and operate its business at the leased premises. This template includes practical guidance, drafting notes, and an alternate clause. These clauses cover contingencies for plan approval and permitting for the tenant's work at the premises. They also cover licenses needed to operate the tenant's business at the premises, such as a liquor license. The tenant's counsel should be sure to review local requirements for permitting and zoning to ensure that the tenant is able to deliver all necessary application materials in a timely manner. This template favors the landlord but includes negotiating tips for the tenant and its counsel. Conform the defined terms and section references in these clauses to those in your lease agreement. For further guidance on restaurant leasing, see Restaurant Lease Agreements and Restaurant Leasing Resource Kit. For restaurant lease templates, see Restaurant Lease Agreement (Long Form, Net Lease, Shopping Center) (Pro-Landlord), and Restaurant Lease (Short Form) (Shopping Center).