Hi,
If a hotel establishment has a hotel part and a restaurant part, and the owner (first party) of the hotel only wants to lease out the restaurant part to a second party, what factors must the owner clarify with the second party? It would be helpful if anyone could share a sample agreement for such cases.
From India, Patnagarh
If a hotel establishment has a hotel part and a restaurant part, and the owner (first party) of the hotel only wants to lease out the restaurant part to a second party, what factors must the owner clarify with the second party? It would be helpful if anyone could share a sample agreement for such cases.
From India, Patnagarh
You may include the following points in the lease agreement:
a) Payment of the lease amount: Who will pay, when will they pay, and what will happen if the amount is not paid by the due date?
b) Advance amount: What is the advance amount that the lessor will take? Will it be refundable or non-refundable? If refundable, upon the expiry of the agreement, within what time period will the lessor return the advance?
c) Cessation of the agreement: How many months' advance notice does either party need to give?
d) Compliance with laws: Clause related to the fulfillment of laws related to labor laws, pollution control, etc.
e) Possession and renewal of license: Possession and further renewal of license under the Shops and Establishment Act or any other act.
f) Employment of children or adolescent workers: Clause related to the employment of children or adolescent workers.
g) Possession of firearms: Clause related to the possession of authorized or unauthorized firearms.
h) Consumption of narcotics: Clause related to the consumption of narcotics and other banned drugs.
i) Workplace safety: Clause related to workplace injury, accidents, and the death of the employee arising out of the work.
j) Utility charges: Payment of electricity charges, water charges, or any other charges, etc.
k) Operation hours: Operation hours for the restaurant as prescribed by the local laws.
l) Noise limits: If a party is conducted, then the decibel limit for the noise.
m) Fire safety: Issues arising out of fire in the kitchen, explosion of the gas cylinder, short circuit, etc.
n) Safety of women: Clause related to the safety of women, whether they are customers or restaurant employees.
o) Parking space: Clause related to parking space and allotment of parking slots for the restaurant owner, staff, and customers.
p) Property damage: Clause related to damage to the property owing to the fracas with the customers or among the restaurant employees.
q) Staff poaching: Clause related to the poaching of the staff employed by the hotel owner or vice versa.
r) Serving of liquor: Clause related to the serving of liquor as prescribed by the excise department.
s) Waste disposal: Clause related to the disposal of wet waste and dry waste as prescribed by the local municipal corporation.
t) Pest control: Clause related to the frequency of pest control operations and issues related to serving hygienic food to restaurant customers.
u) Theft: Clause related to the theft of the restaurant property.
v) Government inspection: Clause related to inspection by various government agencies.
w) Signboard display: Clause related to the display of the signboard as per the norms of the local municipal corporation.
x) Food service to guests: Clause related to serving food to the guests or occupants of the hotel rooms and how to handle the billing.
y) Jurisdiction: Clause related to the jurisdiction of the court under which disputes are to be settled.
z) Any other clause.
Thanks,
Dinesh Divekar
From India, Bangalore
a) Payment of the lease amount: Who will pay, when will they pay, and what will happen if the amount is not paid by the due date?
b) Advance amount: What is the advance amount that the lessor will take? Will it be refundable or non-refundable? If refundable, upon the expiry of the agreement, within what time period will the lessor return the advance?
c) Cessation of the agreement: How many months' advance notice does either party need to give?
d) Compliance with laws: Clause related to the fulfillment of laws related to labor laws, pollution control, etc.
e) Possession and renewal of license: Possession and further renewal of license under the Shops and Establishment Act or any other act.
f) Employment of children or adolescent workers: Clause related to the employment of children or adolescent workers.
g) Possession of firearms: Clause related to the possession of authorized or unauthorized firearms.
h) Consumption of narcotics: Clause related to the consumption of narcotics and other banned drugs.
i) Workplace safety: Clause related to workplace injury, accidents, and the death of the employee arising out of the work.
j) Utility charges: Payment of electricity charges, water charges, or any other charges, etc.
k) Operation hours: Operation hours for the restaurant as prescribed by the local laws.
l) Noise limits: If a party is conducted, then the decibel limit for the noise.
m) Fire safety: Issues arising out of fire in the kitchen, explosion of the gas cylinder, short circuit, etc.
n) Safety of women: Clause related to the safety of women, whether they are customers or restaurant employees.
o) Parking space: Clause related to parking space and allotment of parking slots for the restaurant owner, staff, and customers.
p) Property damage: Clause related to damage to the property owing to the fracas with the customers or among the restaurant employees.
q) Staff poaching: Clause related to the poaching of the staff employed by the hotel owner or vice versa.
r) Serving of liquor: Clause related to the serving of liquor as prescribed by the excise department.
s) Waste disposal: Clause related to the disposal of wet waste and dry waste as prescribed by the local municipal corporation.
t) Pest control: Clause related to the frequency of pest control operations and issues related to serving hygienic food to restaurant customers.
u) Theft: Clause related to the theft of the restaurant property.
v) Government inspection: Clause related to inspection by various government agencies.
w) Signboard display: Clause related to the display of the signboard as per the norms of the local municipal corporation.
x) Food service to guests: Clause related to serving food to the guests or occupants of the hotel rooms and how to handle the billing.
y) Jurisdiction: Clause related to the jurisdiction of the court under which disputes are to be settled.
z) Any other clause.
Thanks,
Dinesh Divekar
From India, Bangalore
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