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Lease agreements are common business documents. Most businesses do not build or construct their own office from scratch, so they lease through a third party. Companies will pay rent or lease a space so that they can operate their business. And, for the lease to become valid, a lease agreement should be signed between the lessor and lessee.
Companies lease because they do not have enough financial resources to construct their own building or office. Even if they have sufficient resources, they would rather use the money for other company expenses such as employee salaries and inventory. Constructing your own office is very expensive and will probably cost more than your employees’ annual salaries combined. Additionally, prices of materials needed for office or building construction such as cement, glass, and steel are always rising, and this does not even include the cost of renting heavy equipment such as scrapers, excavators, and backhoe loaders.
Restaurants are not exempted from obtaining lease agreements. As mentioned above, even the most financially stable companies, five-star restaurants and multimillion fast food chains lease spaces due to the cost of erecting a restaurant building. Here are some cafe, restaurant, and bakery lease agreements you can use for your own food business, and also some other multipurpose lease agreements you can purchase at very affordable prices.
Lease agreements are not difficult to accomplish. You are already given a head start if you purchase a template online. All you need to do is edit the template, add the content, and you can now give the lease agreements to a third party or client. Here are some tips in making effective lease agreements for your food business to provide clarity for both the lessor and lessee, especially when it comes to the terms and conditions.
If you are the owner (or part of the management team) of a restaurant and plan to give out a lease agreement to a third party for leasing purposes, then it is highly suggested that you include a short profile of your restaurant in the lease agreement. The profile will most likely include the food products you are selling (including your best-selling dishes), address and contact number of your restaurant, the theme or concept you are using, and your mission and vision statements.
Adding a short profile of your restaurant will add to the legitimacy of the lease agreement as well as provide clarity to the lessor of the space you will be renting. Although the above-mentioned items are the standard things to include in a profile, you can always add more information but remember to keep it short as you still have other things to discuss in the lease agreements, especially the payment terms.
Lease agreements are never free, unless you own the land where you constructed your restaurant. Payment terms are one of the most important aspects of any lease agreement. It is where both parties benefit since the lessor gets paid from the rent and the lessee has a space to conduct its daily business operations. The amount of payment being listed in the lease agreement can vary from one agreement to the other as the payment actually depends on the size of the leased space.
As seen in most lease agreements, payments are made every month. This should be applied in your lease agreement as well. Although there are other lease agreements which allow the lessee to pay every other month or every quarter, payments using those terms can be quite burdensome on your end since you have to pay more after a few months. Additionally, you might spend the money which was originally intended for rent for other restaurant expenses. The danger of not paying your lease on time is that you will end up paying more since you will also be paying for interest.
Lease agreements are not lengthy business agreements, and should not be lengthy at all. Lease agreements are not lengthy and wordy compared to other business documents such as feasibility studies, business plans, and financial statements, although lease agreements still contain high levels of detail and very specific information. Keep your lease agreement short since you are only discussing terms and guidelines in the agreement. Keep it short and concise so that you do not confuse the lessee or the other party in the lease agreement.
The importance of proofreading cannot be understated. One wrong piece of information can prove costly for the lessee since he will paying more than he actually should. This might also cause some legal problems along the way. You should proofread everything before you print out and submit the agreement to the other party.
Aside from the payment terms which you should double check, you should also proofread the other conditions in the agreement such as the size of the leased space and the equipment or tools which the lessor will also you allow to lease. Proofreading is important, especially when dealing with figures (amount of the leased space and also the size of the leased space).
We hope you found our lease agreement templates to be very useful for your own restaurant, cafe, or bakery. We also included some tips on how to purchase online templates and as well as some tips when making lease agreements. You need to get value for your money when you purchase anything online since you will be spending your hard-earned cash. Additionally, making lease agreement templates is not that difficult as long as you follow the tips we have listed here.