How do you take over a restaurant lease?

How do you take over a restaurant lease?

In order to arrange to take over a lease for commercial restaurant space, you likely will have to submit a lease takeover proposal to the landlord.

  1. State the purpose of the proposal — explain your interest in the restaurant property and taking over the associated lease to the landlord.
  2. Detail your mission.

How do you transfer a lease agreement?

Transferring a lease is known as assigning a lease. The tenant (lessee) is the assignor of the lease and the proposed new tenant is the assignee. You must ask the landlord in writing for consent to transfer (assign) the lease.

What does turnkey restaurant mean?

A turnkey business is a business that’s existing condition allows for immediate operation. A turnkey restaurant is one in which the previous restaurant ceased operations, but all of the equipment is still in working condition.

What does it mean to transfer a retail lease?

Your rights and responsibilities Transfer of a retail leases premises The transfer, or assignment of a retail premises lease from a current tenant, or assignor to a new tenant, or assignee is known as a transfer.

Can a restaurant use the premises under a lease?

The proposed tenant wants to use the premises in a way that is not permitted under the lease. For example, the proposed tenant wishes to use the premises as a restaurant when the permitted use under the lease is a sports store.

When to transfer a commercial lease to another party?

There are usually two situations when a tenant will transfer (also known as an assignment) a commercial lease to another party (the assignee) before the end of a lease term: the tenant is proposing to exit the lease and has found a party who will take on the existing lease.

What is the procedure for transferring a lease?

The procedure for transferring a lease is set out in the Retail Leases Act 2003 (the Act) and is usually in the ‘assignment’ section of the lease. All provisions in the lease, however, are subject to Part 7 of the Act, which sets out the requirements for assigning a lease. Current tenant obligations

What happens if you sell your restaurant lease?

As the restaurant industry continues to blossom, landlords want in on the action. Taking first right of refusal on liquor licenses is one result of this, as is the appearance of transfer premiums in restaurant leases. This means that if you sell your restaurant, your landlord will take a portion of the sale price—in some cases, as much as 50%.

What do you need to know about leasing a restaurant?

A commercial lease agreement is a legally binding rental agreement between a landlord and a tenant. You should consult a lawyer to understand the relationship between the tenant (you) and the landlord.

When do you need to transfer a business lease?

There are also times when you will need to transfer the lease when the business is not bought or sold. For example, if one or more of the business owners is leaving the business.

Is there an option to renew a restaurant lease?

You may, however, be able to negotiate an option to renew that will allow you the opportunity to continue to extend your length of time in your space. As a restaurant owner, try to negotiate a longer lease and an option to renew whenever possible. Know the average commercial rent in your neighborhood.