If you are planning to lease a restaurant or other commercial property, you will have to deal with different provisions. For instance, the kind of food that you can sell and serve will depend on the owner’s concept. If the owner prefers you serving Italian food, then you cannot sell Mexican consumables. There are cases when they can allow changes to precise parameters based on particular holidays or specials. However, the main food type served should be the same.
Such provisions will help in keeping the landlord from leasing other restaurants of the same kind near your building. Other legal provisions that you will discuss with your real estate attorney in Denver, CO is required to guarantee success as you run the restaurant. This is why you will want an exclusive use rule.
The Exclusive Use Provision
Several legal provisions are needed when leasing a restaurant or other commercial properties. This is why it is essential to make sure that the contractual agreement lists conditions in writing to make you and the landlord liable for different problems.
The exclusive use clause outlines a needed connection between both parties to ensure that a rival business will not exist near the location. Similar kind of commercial function is also not permitted. Your Italian restaurant will have exclusive rights to the area, and a similar one is not allowed within a specified number of yards. This means the landlord will have to abide by the condition when clearly mentioned in the lease.
If your landlord does decide to break this kind of clause, they will have to face monetary penalties. This rule was set in place so they will follow through with their promise. Breach of contract is a pretty typical transaction with particular businesses. If a penalty is in place, they will most likely reconsider breaching the terms.
Assignment Clauses and Lease Terms
Land alterations, payment for rent and related items are critical elements to a restaurant lease. You may need to change the landscape or expand the parking light. Others might conclude that their building is way too small and might add more to the structure. The lease conditions should mention such provisions to give the tenant freedom to alter the building or land. If you only own the structure of the restaurant and not the land, you can change particular parts by getting consent in writing.
A lease is the same as a contract, which is why you should hire an attorney to help you draft and edit the document. This way, the provisions listed will benefit you and the landlord in the arrangement.