The restaurant lease – Part 1: Contracting parties, term, rent

In the first part of our series on restaurant leases, we explain which aspects are crucial for contractual partners, lease term and lease payment – concise, legally sound and practical.

1. Contracting party

Contracting parties in a restaurant lease agreement can be private individuals or legal entities (GbR, GmbH, etc.). The key point is: if the contract is with a private individual in a business context, it is not a consumer contract. This has legal implications, such as the exclusion of the right of withdrawal. The sub-lease – for instance from a private individual to their operating company – can also be regulated in the contract.

In addition to the space being leased (best defined precisely using floor plans), the contract often also covers inventory that is included and leased along with the premises. Here it is very important to list major inventory items by name and manufacturer. An inventory list should be prepared and attached to the lease agreement as an annex.

2. Contract object

The leased object should be precisely described – including the exact area (sqm), all ancillary spaces (storage, terrace, car parks), and any infrastructure obligations (waste, utilities).

3. Lease duration

The lease term is a core element. Whether fixed-term or open-ended – each variant brings specific advantages and disadvantages:

Fixed-term contract: ends automatically without notice, provides planning certainty.
Open-ended contract: more flexible, requires notice (e.g. six months to the end of the lease year).

A minimum term or waiver of termination rights can also be agreed – useful when significant investment or valuable inventory is involved.

4. Lease payment

The lease rate is freely negotiable. The level is guided by expected or historical revenues. A stepped lease – particularly for the first three years – helps the tenant get established. We advise against pure revenue-linked rent for several reasons: it requires external certification of revenue figures, creates additional cost, and without transparency risks eroding the landlord-tenant relationship.

Fixed rent: classic, predictable.
Stepped rent: graduated adjustment – often applied in the early years.
Turnover rent: flexible but complex. We advise against it, as external certification is required.

Part 2 covers value protection clauses, deposits, redemption and business purpose restrictions.

For a complete guide to the full leasing process – from preparation and listing through applicant screening to handover – see our dedicated page Successfully lease your hotel or restaurant.