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Free Restaurant Lease Agreement Template
Draft a comprehensive lease for restaurants, cafes, bars, bakeries, and commercial kitchens. Our template covers kitchen equipment, health codes, liquor licensing, build-out allowances, and all essential food service lease terms.
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RESTAURANT / COMMERCIAL KITCHEN LEASE AGREEMENT
Full-service Restaurant · State Of Texas
LANDLORD (LESSOR)
Pinnacle Commercial Properties LLC
500 Commerce Drive, Suite 300, Dallas, TX 75201
By: (214) 555-8800, leasing@pinnaclecommercial.com
TENANT (LESSEE)
Sofia R. Martinez (d/b/a La Mesa Kitchen LLC)
1200 Main Street, Unit B, Dallas, TX 75202
By: (214) 555-3421, sofia@lamesakitchen.com
750 Restaurant Row, Dallas, TX 75204, Suite 101
July 1, 2026 | 3 years
Full-Service Restaurant | 3200 sq ft | 85 seats
$6,500.00/mo
This Restaurant / Commercial Kitchen Lease Agreement (this "Agreement") is entered into by and between Pinnacle Commercial Properties LLC ("Landlord") and Sofia R. Martinez (d/b/a La Mesa Kitchen LLC) ("Tenant"). Landlord agrees to lease to Tenant, and Tenant agrees to lease from Landlord, the commercial premises described herein for operation of a food service establishment, subject to the terms and conditions set forth below.
1.
PREMISES
Landlord hereby leases to Tenant the commercial property located at 750 Restaurant Row, Dallas, TX 75204, Suite 101, comprising approximately 3200 square feet (the "Premises"), for the sole purpose of operating a full-service restaurant and related food service activities. The approved seating capacity is 85 seats, subject to local fire code regulations. The Premises includes access to 30 parking spaces.
2.
TERM
This lease shall commence on July 1, 2026 and shall continue for a period of 3 years. Upon expiration, this Agreement may be renewed by mutual written consent of both parties under terms to be negotiated no later than ninety (90) days before the expiration date.
3.
RENT
Tenant shall pay Landlord a base monthly rent of $6,500.00, due on the 1st day of each calendar month. A grace period of 5 days shall apply before late fees are assessed. Late payments shall incur a fee of $150.00.
4.
SECURITY DEPOSIT
Tenant shall provide a security deposit of $13,000.00 upon execution of this Agreement. The deposit shall be held by Landlord and returned within thirty (30) days after termination of this lease, less any deductions for unpaid rent, damages beyond normal wear and tear, or other charges as permitted by the laws of the State of Texas.
5.
RENT ESCALATION
The base monthly rent shall increase by 3% on each anniversary of the lease commencement date. Landlord shall provide Tenant with written notice of the adjusted rent no later than sixty (60) days prior to the effective date of each increase.
6.
PERMITTED USE
The Premises shall be used solely for the operation of a full-service restaurant and related food service activities. The permitted restaurant concept is: Upscale Mexican restaurant serving lunch and dinner, featuring a full bar with craft cocktails, weekend brunch service, and private dining room for events. Any material change in concept requires Landlord's prior written approval. Required operating hours: Monday-Thursday 11am-10pm, Friday-Saturday 11am-12am, Sunday 10am-9pm.
7.
LIQUOR LICENSE
Tenant shall be responsible for obtaining and maintaining all required liquor licenses and permits at Tenant's sole expense, including any applicable state license (e.g., California Business and Professions Code Sections 23300 et seq. (ABC); New York Alcoholic Beverage Control Law Sections 63 et seq.; Texas Alcoholic Beverage Code Chapter 25 et seq.) and any local municipal permit. Tenant shall comply with all federal, state, and local laws governing the sale and service of alcoholic beverages, including applicable dram-shop and server-training requirements. Landlord shall reasonably cooperate with Tenant's license applications.
8.
OUTDOOR SEATING
Tenant is permitted to operate outdoor seating and/or a patio area, subject to municipal permits, ADA compliance, and reasonable noise regulations. Tenant shall maintain the outdoor area in clean and orderly condition at all times.
9.
DELIVERY AND TAKEOUT
Tenant is permitted to conduct delivery and takeout operations from the Premises, including partnerships with third-party delivery platforms. Tenant shall designate a specific area for delivery driver pickup that does not obstruct building entrances, fire lanes, or parking.
10.
SIGNAGE
Tenant's signage rights are as follows: One illuminated exterior sign (max 4x8 ft) on building facade and one A-frame sidewalk sign during business hours, subject to municipal approval. All signage must comply with local municipal codes, HOA or building regulations, and requires Landlord's written approval prior to installation. Tenant shall remove all signage upon lease termination and restore the facade to its original condition.
11.
EXCLUSIVITY
Landlord agrees not to lease any other space within the same building, complex, or property to a food service establishment that directly competes with Tenant's permitted restaurant concept for the duration of this lease. This exclusivity clause does not apply to preexisting tenants or establishments operating under a different cuisine category.
12.
TENANT IMPROVEMENT ALLOWANCE
Landlord shall provide a tenant improvement allowance of $50,000.00 toward the build-out and customization of the Premises. Allowance disbursement shall be made upon completion of approved improvements and submission of paid invoices. Tenant shall have a rent-free build-out period of 90 days commencing on the lease start date.
13.
MODIFICATIONS AND ALTERATIONS
Tenant shall not make any structural modifications, alterations, or improvements to the Premises without obtaining Landlord's prior written approval. All approved improvements shall be completed in a workmanlike manner, in compliance with applicable building codes and permits. Landlord shall not unreasonably withhold approval.
14.
KITCHEN SYSTEMS MAINTENANCE
Grease trap, grease interceptor, and exhaust hood system maintenance (including cleaning, repair, and regulatory compliance with local fats, oils, and grease (FOG) pretreatment ordinances and NFPA 96 hood-cleaning frequencies) shall be the responsibility of Tenant. HVAC and commercial-kitchen ventilation system maintenance and repair shall be the responsibility of Landlord. All kitchen systems shall be maintained in compliance with local health department, fire safety, and air-quality regulations, including the Clean Air Act, 42 U.S.C. Section 7401 et seq., as locally implemented.
15.
FIXTURES AND EQUIPMENT
All permanently installed fixtures, kitchen equipment, walk-in coolers, exhaust hoods, and built-in improvements shall become the property of Landlord upon installation and shall remain with the Premises at lease termination. Tenant may remove movable trade equipment that is not permanently affixed.
16.
INSURANCE
Tenant shall maintain, at Tenant's sole expense, the following insurance coverage throughout the lease term: Commercial General Liability (including products/completed operations and premises liability): minimum $1,000,000.00 per occurrence; Property Damage and Business Interruption coverage: minimum $500,000.00; Liquor Liability / Dram Shop: minimum $1,000,000.00; Workers' Compensation and Employer's Liability as required by the State of Texas. Landlord shall be named as an additional insured on all liability policies, and Tenant's insurance shall be primary and non-contributing. Certificates of insurance and endorsements shall be provided to Landlord prior to lease commencement and upon each renewal. Each Party waives subrogation against the other to the extent of insurance proceeds received.
17.
FIRE SAFETY AND SUPPRESSION
Maintenance, inspection, and certification of the kitchen fire suppression system (Ansul or equivalent), sprinkler system, fire extinguishers, and emergency exits shall be the responsibility of Tenant. Inspections shall be conducted at least annually or as required by local fire codes. All fire safety records shall be maintained on-site and made available to the other party upon request.
18.
ADA COMPLIANCE
Compliance with Title III of the Americans with Disabilities Act, 42 U.S.C. Sections 12181-12189, and the 2010 ADA Standards for Accessible Design (28 C.F.R. Part 36, Appendix A) for the Premises shall be the responsibility of Landlord. This includes, but is not limited to, accessible entrances, restrooms, seating areas, path of travel, counters, and ADA-compliant parking spaces. Any alterations or readily achievable barrier removal required by 42 U.S.C. Section 12182(b)(2)(A)(iv)-(v) shall be completed at the responsible party's expense, and each Party shall indemnify the other against claims arising from its failure to perform its accessibility obligations.
19.
ASSIGNMENT AND SUBLEASE
Tenant shall not assign this lease or sublease any portion of the Premises without Landlord's prior written consent, which shall not be unreasonably withheld. Any approved assignee or sublessee must demonstrate the financial capacity and operational experience to maintain the food service operation. Tenant shall remain liable under this lease notwithstanding any assignment or sublease.
20.
EARLY TERMINATION
If Tenant terminates this lease before the natural expiration date, Tenant shall pay Landlord an early termination penalty of $25,000.00 in addition to any remaining rent obligations and forfeiture of the security deposit.
21.
DEFAULT AND CURE
In the event of a material breach of this Agreement by either party, the non-breaching party shall provide written notice specifying the default. The breaching party shall have 30 days from receipt of such notice to cure the default. If the default is not cured within the specified period, the non-breaching party may pursue all remedies available under the laws of the State of Texas.
22.
COMMON AREA MAINTENANCE (CAM) AND GROSS-SALES REPORTING
If any portion of rent is calculated as percentage rent based on Tenant's gross sales (as customary in restaurant leases), Tenant shall deliver to Landlord, within thirty (30) days after the end of each lease year, a statement of gross sales certified by an officer of Tenant or an independent CPA. Tenant shall maintain books and records of gross sales for at least three (3) years. With respect to common area maintenance (CAM), real-estate tax, and insurance pass-throughs, Tenant shall have the right, upon thirty (30) days' written notice and not more than once per lease year, to audit Landlord's CAM records at Tenant's expense; if the audit shows an overcharge of more than five percent (5%), Landlord shall refund the overcharge and reimburse Tenant's reasonable audit costs.
23.
HEALTH, FOOD CODE, AND ENVIRONMENTAL COMPLIANCE
Tenant shall comply, at Tenant's sole expense, with all federal, state, and local laws governing the operation of a food service establishment, including without limitation: (a) the FDA Food Code as adopted in the State of Texas by the applicable state or local health authority; (b) local health-department permit, inspection, and food-handler certification requirements; (c) applicable fats, oils, and grease (FOG) and grease-trap/interceptor discharge ordinances and pretreatment standards under the Clean Water Act, 33 U.S.C. Section 1317(b); (d) commercial-kitchen ventilation, emissions, and hood-suppression requirements under the Clean Air Act, 42 U.S.C. Section 7401 et seq., NFPA 96, and the International Mechanical Code as locally adopted; and (e) all wage-hour and meal/rest-period laws applicable to restaurant employees, including the Fair Labor Standards Act, 29 U.S.C. Section 201 et seq. (including the tip-credit provisions of 29 U.S.C. Section 203(m)) and, if applicable, California Labor Code Sections 512 and 226.7. Tenant shall maintain all required permits and certifications and shall allow Landlord reasonable access to inspect compliance upon twenty-four (24) hours' written notice.
24.
GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Any legal action arising under this Agreement shall be brought in the courts of the county in which the Premises is located.
25.
ENTIRE AGREEMENT
This Agreement constitutes the entire understanding between the parties concerning the subject matter hereof and supersedes all prior agreements, negotiations, and discussions. No amendment or modification shall be effective unless in writing and signed by both parties.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.
LANDLORD
Pinnacle Commercial Properties LLC
Date: ____________________
TENANT
Sofia R. Martinez (d/b/a La Mesa Kitchen LLC)
La Mesa Kitchen LLC
Date: ____________________
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What Is a Restaurant Lease Agreement?
A restaurant lease agreement is a specialized commercial lease contract used throughout the United States designed specifically for food service operations. Unlike a standard commercial lease, it addresses the unique requirements of running a restaurant, cafe, bar, bakery, or other food establishment, including kitchen infrastructure, ventilation systems, grease management, U.S. health department compliance, and liquor licensing obligations.
Restaurant leases are typically longer than standard retail leases because tenants invest heavily in building out commercial kitchens, installing specialized equipment, and customizing the dining space. These agreements define who is responsible for maintaining critical systems like fire suppression equipment, walk-in coolers, exhaust hoods, and grease traps, all of which are essential to daily food service operations.
A well-drafted American restaurant lease protects both parties by clearly establishing rent obligations, permitted use restrictions, build-out allowances, insurance requirements, and termination conditions. It also addresses restaurant-specific concerns such as operating hours, outdoor seating rights, delivery service permissions, signage, and exclusivity clauses that prevent the U.S. landlord from leasing nearby space to competing food businesses.
What's Covered in This Template
Doxuno's restaurant lease agreement template includes all essential sections for a commercial food service lease. Each section can be customized based on your establishment type, whether it is a full-service restaurant, fast-casual concept, cafe, bar, or bakery.
Parties and Premises
Lease Term and Renewal
Rent and Escalation
Permitted Use and Operations
Liquor License Terms
Build-Out and Improvements
Kitchen Equipment and Fixtures
HVAC and Fire Suppression
Insurance Requirements
Health Code Compliance
Assignment and Subletting
Termination and Default
How to Create a Restaurant Lease Agreement
Building a solid restaurant lease requires attention to both standard commercial terms and food-service-specific provisions. Our template walks you through every section with clear prompts and sensible defaults. Follow these five steps to create your agreement.
- 1
Identify the Parties and Premises
Enter the full legal names, addresses, and contact details for the landlord (property owner or management entity) and the tenant (restaurant operator or business entity). Specify the property address, unit number, total square footage, seating capacity, available parking, and the type of food service establishment you plan to operate.
- 2
Define the Lease Term and Rent
Select a lease duration ranging from 1 to 10 years or enter a custom term. Set the monthly base rent, security deposit amount, rent due date, and grace period. Choose a rent escalation method if applicable, such as a fixed annual percentage increase or CPI-based adjustments with a cap.
- 3
Set Permitted Use and Operational Terms
Describe your restaurant concept and cuisine type, define your planned operating hours, and specify who holds responsibility for the liquor license. Indicate whether outdoor seating and third-party delivery services are permitted, and decide if an exclusivity clause should prevent the landlord from leasing nearby space to a competing restaurant.
- 4
Configure Build-Out and Improvement Terms
Enter the tenant improvement allowance amount and build-out completion deadline. Determine whether modifications require landlord approval, assign responsibility for grease trap maintenance and HVAC servicing, and clarify who owns tenant-installed fixtures at the end of the lease term.
- 5
Add Insurance, Compliance, and Termination Provisions
Set minimum coverage amounts for general liability, commercial property, and liquor liability insurance. Define who is responsible for ADA compliance and health code inspections. Specify assignment and subletting rules, early termination penalties, cure period lengths, and the state whose laws govern the agreement.
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Legal Considerations for US Restaurant Leases
U.S. restaurant leases involve more regulatory complexity than standard commercial leases due to health department requirements, fire safety codes, liquor licensing rules, and accessibility mandates. Understanding these American legal dimensions before signing helps both landlords and tenants avoid costly disputes and compliance failures.
This template is provided for informational purposes and does not constitute legal advice. Restaurant leases involve local zoning laws, health codes, and licensing requirements that vary by state and municipality. Consult a licensed attorney and a commercial real estate professional for your specific situation.
Reviewed by legal professionals. The content on this page and the template clauses have been reviewed by licensed attorneys in the United States to ensure accuracy and legal soundness for standard restaurant and commercial kitchen lease scenarios.
Health Code and Food Safety Compliance
Restaurant tenants must comply with local U.S. health department regulations, obtain food establishment permits, and pass regular inspections. The lease should clearly assign responsibility for maintaining American health code compliance, including proper food storage, sanitation systems, pest control, and waste disposal. Failure to maintain compliance can result in permit revocation, which may constitute a lease default.
Build-Out and Zoning Considerations
Before investing in a U.S. restaurant build-out, verify that the property is zoned for food service use and that your planned concept (full-service dining, bar, bakery) is permitted under local American zoning ordinances. The lease should address who pays for building permits, code-required upgrades, and any landlord approval processes for structural modifications such as installing commercial exhaust hoods or expanding grease trap systems.
Liquor Licensing and Liability
If the restaurant will serve alcohol, the lease should specify which party is responsible for obtaining, maintaining, and renewing the liquor license. Liquor licensing rules vary significantly by U.S. state and locality. The tenant should also carry liquor liability insurance and understand that license revocation may trigger specific lease consequences. Some American jurisdictions tie the liquor license to the premises rather than the operator, which affects transferability under United States law.
Frequently Asked Questions
Create Your Restaurant Lease Today
Build a comprehensive U.S. restaurant lease agreement in minutes. Our American template covers everything from kitchen equipment and health codes to liquor licensing and build-out allowances for any food service operation.
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