June 2020
Beginner
208 pages
4h 21m
English
Content preview from The Food and Beverage Magazine Guide to Restaurant Success
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4The Dream Becomes Reality
Take a deep breath.
You have chosen a space based on your research and criteria. You are making a commitment. You are now ready to open a restaurant. There is still a lot of work to be done, but this is the make it or break it moment.
Put a Signature on It
You have the lease, and now you need to sign it.
First you need to review it. I urge you to have an attorney review it as well. As I have mentioned in previous chapters, there are legal services that charge a small fee to review a lease. I am not an attorney, but I also advise you not to sign a lease giving a personal guarantee that the business will remain operational during the length of the lease. A personal guarantee is a written, legal promise that you will personally pay the lease in its entirety. This means if the business defaults on the lease, then you, the business owner, will be personally responsible for repaying the complete amount of the rent for the term of the rental agreement. You don't want to be liable if something happens. While I have been a part of many success stories, life happens, so avoid that kind of guarantee.
I have witnessed prospective lessees offer two to three months of security deposit instead of a personal guarantee. The extra payment allows the landlord more time to lease the real estate if you have to close the business before the lease is up. This way, you are not responsible for the term of the lease.
Once everything is approved, you sign the lease, the landlord ...
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