Meeting Landlord Requirements to Lease a Restaurant
Written By: Robin Gagnon
Renting a restaurant location takes more than the first month’s rent as a security deposit.Landlords want to secure their risk against default and they want to know who they are dealing with.Regardless of whether there’s a charge for a listing, buyers must be prepared to present the following documents in order to qualify for the lease.
Personal Financial Statements
Tax Returns
Business Plan
Consent to Credit Check
Each of these elements allows the landlord to gauge how well you have paid your obligations in the past as a predictor of how you will pay the rent to them.Initially, a credit check and your personal financial statement can be used to form a financial opinion.Then the landlord will want to see two years of tax returns that substantiate the earnings on your financial statement.They will also often request copies of account statements to verify any balances quoted on your financial statement.The business plan is required to demonstrate the concept you will bring to their center and what they can expect as part of their tenant mix.
Business plans can range from the very complex to the simple.Professionals will prepare these for a fee ranging from $450 to $1000.You can also purchase online software.Most operators should be able to put together their own business plan.These are the common elements for a restaurant business plan and what each reader should learn from each section of the plan.
I.Restaurant Description and Vision
This section should include:
Mission statement (business purpose).
Company vision (statement about company growth).
Business goals and objectives.
Brief history of the business.
List of key company principals.
After reviewing this section the reader should know:
Who the business is and what it stands for.
Your perception of the company’s growth & potential.
Specific goals and objectives of the business.
Background information about the company.
II.IIIII. Definition of the Market
This section should:
Describe your business industry and outlook.
Define the critical needs of your perceived or existing market.
Identify your target market.
Provide a general profile of your targeted clients.
Describe what share of the market you currently have and/or anticipate.
After reviewing this section the reader should know:
Basic information about the industry you operate in and the customer needs you are fulfilling.
The scope and share of your business market, as well as who your target customers are.
III.Description of Products and Services
This section should include your menu, the centerpiece of your products and services
