Top Five Leasing Strategies for Independent Restaurant Owners

You have a business plan and found the perfect location for your new restaurant concept. Now comes the hard part: negotiating the lease and opening for business.Here are the top operations and risk considerations that you should not overlook during the lease negotiation. 

1. Tenant EntityFor liability reasons, do not list the tenant as a single individual. Pick a name for, and then form, the entity that will run the business and appear on the lease as the tenant. Unless there’s a licensing reason to incorporate (more on this below), the restaurant owner should be a limited liability company (LLC). This allows for more flexibility with raising capital from operating owners and “silent” investors, all referred to as “members” of the LLC. It also provides a clear outline of who manages the business, who gets certain decision rights over restaurant operations and major business decisions and what returns each member will receive once the restaurant is in the black. 

An LLC…