What Is a Commercial Kitchen Lease Agreement?
A commercial kitchen lease agreement is a written contract between a landlord and a tenant for the use of a licensed kitchen space. These kitchens may include:
- Catering kitchens
- Incubator or shared-use kitchens
- Ghost kitchens
- Commissary kitchens used by food trucks or mobile vendors
This document explains the basic terms of the rental. It shows how the kitchen can be used, when the rent will be due, and who will be responsible for cleaning and maintaining the equipment. With all these rules clearly written down, both parties can avoid confusion and disputes.
Most states require that food sold to the general public be prepared in a licensed and inspected facility. The FDA Food Code, which establishes national standards for safe food handling and sanitation, is the source of these regulations.
Many food businesses cannot work from a home kitchen under state health regulations. A commercial kitchen is often required for businesses such as food trucks, meal-prep services, wholesale food producers, bakers, and caterers.
When to Use a Commercial Kitchen Lease Agreement?
You may need to use a commercial kitchen lease agreement if you have a food business that requires a licensed kitchen space. Here are the most common situations where you would use this agreement:
- Catering Operations: If you cater events, you need a kitchen where you can safely prep and cook food. Most health departments prohibit caterers from using their own home kitchens, so renting a licensed commercial space is the easiest way to stay compliant.
- Bakeries and Food Prep Businesses: If you bake or prepare packaged food, your home kitchen may not have the commercial equipment or storage space you need. A licensed kitchen offers the space and tools you need for preparing food in large batches and storing it.
- Food Trucks and Mobile Vendors: Food trucks and carts usually must check in at a commissary kitchen. This is where you can prep food, clean equipment, and store supplies. It also gives you a reliable base to work from each day.
- Shared or Part-Time Kitchen Use: Many food entrepreneurs rent kitchen time by the hour or day. A kitchen lease agreement helps you finalize a schedule, secure storage space, and understand what equipment you can use while sharing the kitchen with others.
- Wholesale or Retail Food Production: Businesses that sell packaged food to stores, markets, or customers often need a professional space that supports labelling, packaging, and safe long-term storage. A commercial kitchen allows for consistent production and can handle larger orders.
- Meal-Prep and Delivery Services: Meal-prep companies need a space to cook in batches, portion meals, and store ingredients at the right temperature. A licensed kitchen offers the layout, cold storage, and prep areas necessary to manage weekly menus and keep operations running smoothly.
How to Fill Out a Commercial Kitchen Lease Agreement
A well-written kitchen lease agreement protects both the landlord and the tenant by outlining the rules for renting the space. Here’s a step-by-step guide on how to fill out your commercial kitchen lease agreement:
Step 1 – Enter Landlord and Tenant Information
Start by listing the names and contact details of both parties. You can enter an individual or a business as the landlord or tenant. Make sure the names match any business licenses or permits the tenant is using.
Step 2 – Provide the Kitchen’s Address and Property Details
Include the location of the kitchen. Make sure to add the complete address with any unit or suite numbers. Add other details, including the size of the space, whether it is used exclusively or shared, and the areas the tenant may access, such as parking, storage rooms, or dishwashing stations.
Step 3 – Set the Lease Term
Choose the type of lease you want, such as a month-to-month agreement or a fixed-term lease. Add the start date, end date, and any options for renewing the lease. Adding exact dates can help both parties understand when they can access the kitchen and when that access will come to an end.
Step 4 – Specify Rent and Payment Terms
Enter the rent amount and how often it is due. Many commercial kitchens charge hourly, daily, or monthly rates, depending on the space’s usage. You can also add details about security deposits, cleaning fees, or any extra charges for storage or equipment. Specify the amount of any late fees for past due rent and grace periods for non-payment of rent.
Step 5 – Describe How the Kitchen Can Be Used
Describe what the tenant is allowed to do in the kitchen, such as cooking, prepping food, packaging, or storing ingredients. You can also note any rules about odors, noise, deliveries, or cleanup. Setting these expectations up front helps keep the kitchen safe and organized, especially when other people use the space as well.
Step 6 – Choose Maintenance and Repair Responsibilities
Figure out who will be in charge of cleaning, taking care of the equipment, repairing and replacing any damaged equipment, and handling basic waste. Commercial kitchens typically have a lot of equipment, so it’s helpful to know ahead of time who’s responsible for addressing any issues that may arise.
Step 7 – Clarify Who Covers Utilities and Services
Decide who will pay for things like water, gas, electricity, trash pickup, and pest control. Commercial kitchens use more utilities than a regular space, so it’s helpful to sort this out early and make it clear in the agreement.
Step 8 – Add Signage, Liens, and Other Final Terms
If the tenant wants to display a sign or logo, clearly specify whether the landlord’s approval is required. You can also explain how liens will be handled and include any additional rules that apply to the kitchen, such as parking instructions or access requirements after hours.
Step 9 – Review and Sign
Once all terms are complete, review the agreement carefully. Both parties should sign and date the lease and keep a copy for their records. To save time, you can use Legal Templates’s free commercial kitchen lease agreement template to make sure all the important terms are included.
Commercial Kitchens Licensing and Permits
There are a few licenses and permits that you would need before you can start running your food business. Here are some common ones you may need to meet:
- Local Health Department Inspection Approval: Before you start operating your food business, you will need to pass an official inspection from your local health department. They will inspect aspects such as sanitation, the condition of the equipment you’re using, food storage facilities, and overall safety.
- Food Establishment Permit: Most states require a food establishment permit for food businesses. You have to obtain one from the local or state health department. This permit confirms that the food you are preparing is being made in a licensed and inspected facility.
- Food Handler or Food Manager Certification: Most states require the kitchen staff to have food handler training or a Certified Food Protection Manager (CFPM) on-site.
- Retail or Wholesale Food License: You may need a retail license if you sell food directly to customers, whether through a restaurant, deli, or grocery store. A wholesale license may be required to sell products to stores or distributors.
- Mobile Food or Commissary Approval: Food trucks and mobile vendors must provide proof that they are using a licensed commissary kitchen for all preparation, storage, and cleaning activities.
- Additional Licenses: Depending on your location and the type of food you’re selling, you may need extra permits or approvals. Check with your local health departments for rules specific to your area.
To learn more about the regulatory requirements of a food business. Read the FDA’s guide on How to Start a Food Business.
Licensing rules differ by state, so always check with your local health department or review state-specific guidance to confirm what your business needs.
Sample Kitchen Lease Agreement
Review the sample commercial kitchen lease agreement template below to learn how to complete each section. Once ready, you can use our guided questionnaire to complete your agreement and download it as a PDF or Word file.