A restaurant lease can affect whether the business can continue at its current location after a sale. Before pursuing a restaurant for sale, obtain the complete lease and amendments and ask a commercial leasing lawyer to interpret them.
Read the whole agreement
Record the current term, renewal options and deadlines, base and additional rent, escalation formula, taxes, maintenance duties and permitted use. Check restrictions on hours, patio, signage, renovations, transfer or change of control. Compare the written terms with the seller’s summary and payment history.
Confirm the transfer path
Determine whether the transaction is an asset or share purchase and what landlord consent is required. Ask about assignment conditions, guarantees, deposits, restoration duties and any landlord review costs. Request written confirmation of arrears, notices, defaults and outstanding work; do not rely only on a verbal assurance.
Test affordability and continuity
Model occupancy costs against realistic sales and operating costs, including future rent changes and renewal uncertainty. Confirm that the proposed restaurant concept fits the permitted use and that approvals for changes can be obtained. Our buying guide covers the lease alongside finances, equipment and permits.
Lease rights are contract-specific; obtain legal advice before signing.