Top Provisions to Look Out for When Negotiating a Restaurant Lease (2025 Edition)

Jeffrey A. Margolis
Jeremy Y. Weltman
Larry Welch
Jeffrey A. Margolis | The Margolis Law Firm
Jeremy Y. Weltman | Ruberto, Israel & Weiner, P.C.
Larry Welch | Frankfurt Kurnit Klein & Selz PC

Live Video-Broadcast: December 19, 2024

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2 hour CLE
Tuition: $195.00
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Program Summary

Most restaurant tenants are “clout challenged” when it comes to dealing with landlord’s (typically) onerous, one-sided lease forms. Sending a 300-comment memo will not advance tenant’s cause—in fact, may well backfire; tenant (unfairly) being branded as a troublemaker. And that goes for legal counsel, too!

The objective of this CLE program is to discuss strategic analysis of the lease form and isolate those very significant legal and business provisions which have the greatest impact on the restaurant tenant. All commercial leases have a degree of complexity and uniqueness; negotiating a restaurant lease, however, comes with its own set of challenges in addition to those inherent in all commercial leases. When negotiating a restaurant lease, regardless of whether the negotiations come from the landlord’s position or the tenant’s, there are several unique provisions which can prove costly if overlooked.

This program will alert you to those issues and how best to negotiate them. We will also discuss the view from after the fact, when the dispute has gone past the initial negotiation / drafting, the parties just can’t seem to come to a meeting of the minds on a particular issue, and they’ve found themselves embroiled in litigation. From this “back-end” view, potential traps and pitfalls can be highlighted with an eye toward avoiding these through proper drafting on the “front-end” for your next commercial lease.

This course is co-sponsored with myLawCLE.

Key topics to be discussed:

  • Definition of premises
  • Use
  • Landlord’s work letter/abatements
  • Escalations
  • Assignment and sublet—exit strategies
  • Special zoning and permit Issues (liquor licenses) (landmarked buildings)
  • The Shopping Center Dictionary—co-tenancy—go-dark-CAM charges, radius clauses and the like
  • Restaurant operations issues (odors, grease traps and the like)
  • Security/Guaranties—esp. good guy guaranties
  • Franchise/Leasing issues
  • Potential defenses when the tenant is unable to pay rent
  • How a landlord can best protect itself in this scenario
  • How concepts of legal impossibility of performance and frustration of purpose are used
  • The interplay between insurance coverage and lease drafting

Date / Time: December 19, 2024

  • 1:00 pm – 3:10 pm Eastern
  • 12:00 pm – 2:10 pm Central
  • 11:00 am – 1:10 pm Mountain
  • 10:00 am – 12:10 pm Pacific

Closed-captioning available

Speakers

Jeffrey A. Margolis_FedBarJeffrey A. Margolis | The Margolis Law Firm

Jeff Margolis is the founding principal of The Margolis Law Firm in midtown Manhattan.

After graduating from Brooklyn Law School Jeff practiced real estate law with several well-known New York firms. In 1982 Jeff says all the stars were properly aligned to take a flyer and start his own practice: a working wife, no children and a rent -controlled apartment. He reports things have changed quite a bit since then.

Margolis is proud to call himself a “dirt” lawyer: a specialist in property transactions– buying, selling and, mostly, leasing. Over the years he has frequently lectured and written on cutting-edge issues in office, retail and restaurant leasing matters–presenting at NYU’s Real Estate Institute, Fordham Law School and the ICSC (International Council of Shopping Centers) Law Conference; also, New York City, County and State Bar Associations and many real estate CLE providers. In 2017 Jeff was appointed adjunct professor of real estate law at Brooklyn Law School where he teaches commercial leasing.

Jeff is now editing a new book–The Dirt Dictionary–featuring lease law columns he has written for The Commercial Observer.

On a personal note, Jeff currently shares empty-nester status with his wife Caryn (yes, the same one from back when) in Scarsdale, New York where they raised four wonderful children.

 

Jeremy Y. Weltman_FedBarJeremy Y. Weltman | Ruberto, Israel & Weiner, P.C.

Jeremy Y. Weltman is a shareholder and a member of the firm’s Litigation Department. Jeremy frequently works with the firm’s Commercial Real Estate, Corporate Divorce / Business & Shareholder Disputes, Franchise Law, Construction Law, and Hospitality Practice Groups as part of his wide reaching litigation practice focuses on finding successful resolutions to his clients’ legal issues. Jeremy’s hands-on commercial litigation experience includes handling all sorts of complex commercial and business litigation, real estate disputes, construction matters, municipal disputes, appellate advocacy, and other tort-based litigation matters.

Jeremy has adeptly litigated and negotiated disputes for a wide range of clients including Fortune 500 corporations, mid-sized and small businesses which span across industries, including a variety of hospitality businesses, professional service offices, property owners and developers, commercial tenants and landlords, condo associations, contractors, and disenfranchised individuals. Clients take comfort in knowing that Jeremy has shown no fear in taking a “tough case” through trial. To this end, Jeremy has successfully tried numerous cases in Massachusetts state and Federal District courts, briefed and argued matters in the Massachusetts Appeals Court and First Circuit Court of Federal Appeals, and has also represented clients in alternative forms of dispute resolution, such as arbitration and mediation, with favorable results.

 

Larry Welch_FedBarLarry Welch | Frankfurt Kurnit Klein & Selz PC

Larry Welch is a partner and Chair of the Real Estate Group. He handles real estate transactions for high-profile individuals and businesses in the entertainment, advertising, restaurant, personal care, and professional services industries.

Mr. Welch regularly advises on purchases, sales, leases and financings of a wide range of commercial properties — including retail stores, restaurants, music studios, art galleries, advertising agencies, gyms, professional offices, schools and other public spaces across the country. He guides clients at every stage of their real estate journey – from opening their places of business, to buying and selling land and buildings, to purchasing investment properties and personal residences.

In addition to his real estate transactions practice, Mr. Welch works with the Frankfurt Kurnit Litigation Group to resolve real estate-related disputes, and with the Frankfurt Kurnit Hospitality Group to provide legal advice to restaurateurs and their business partners. Mr. Welch serves as Chair of the New York City Bar Association’s Hospitality Law Committee. He has presented on real estate issues for the New York City Bar Association and other organizations. During the COVID-19 pandemic, he provided pro bono advice to individual tenants, including via an advice hotline for restaurateurs. He is an active member and former Chair of the “Prep in Real Estate” Alumni Committee of “Prep for Prep,” an organization that prepares students of color to attend private schools. Mr. Welch received his J.D. from Fordham University School of Law and his B.A. from Vassar College. He is admitted to practice in New York.

Agenda

I. Definition of Premises | 1:00pm – 1:08pm

II. Use | 1:08pm – 1:16pm

III. Landlord’s work letter/abatements | 1:16pm – 1:24pm

IV. Escalations | 1:24pm – 1:32pm

V. Assignment and sublet—exit strategies | 1:32pm – 1:40pm

VI. Special zoning and permit Issues (liquor licenses) (landmarked buildings) | 1:40pm – 1:48pm

VII. The Shopping Center Dictionary—co-tenancy—go-dark-CAM charges, radius clauses and the like | 1:48pm – 1:56pm

VIII. Restaurant operations issues (odors, grease traps and the like) (Part I) | 1:56pm – 2:00pm

Break | 2:00pm – 2:10pm

IX. Restaurant operations issues (odors, grease traps and the like) (Part II) | 2:10pm – 2:14pm

X. Security/Guaranties—esp. good guy guaranties | 2:14pm – 2:22pm

XI. Franchise/Leasing issues | 2:22pm – 2:30pm

XII. Potential defenses when the tenant is unable to pay rent | 2:30pm – 2:38pm

XIII. How a landlord can best protect itself in this scenario | 2:38pm – 2:46pm

XIV. How concepts of legal impossibility of performance and frustration of purpose are used | 2:46pm – 2:54pm

XV. The interplay between insurance coverage and lease drafting | 2:54pm – 3:10pm

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