A restaurant commercial lease deserves a separate review because the premises may be essential to the business. Before considering a restaurant for sale, obtain the signed lease, amendments, side letters and payment history.
Understand the total occupancy cost
Check base rent, additional rent, taxes, common-area charges, utilities, insurance and repair duties. Review escalation dates, audit rights, deposits, guarantees and any arrears. Compare actual occupancy costs with the seller’s description and your own operating forecast.
Read renewal and transfer clauses
Record option deadlines, notice method, renewal rent formula and any conditions. Review permitted use, hours, assignment, subletting, change of control, renovations, signage and patio rights. Ask the landlord what consent, financial information, fees or new guarantees are required for the proposed transaction.
Confirm what happens at closing
Request written confirmation of defaults, notices, required repairs and the landlord’s position on transfer. Make the sale agreement address consent, timing and responsibility if it is refused. Do not assume an asset or share sale has the same lease effect. Our buying guide includes the lease in the wider review.
Lease law and rights depend on the agreement and jurisdiction; get local legal advice.