Operator guide
Restaurant Lease Guide: Assignment vs Sublease
Operators evaluating second-generation restaurant space need to know who they are contracting with, what infrastructure transfers, and what approvals are required before opening.
Direct lease
A new agreement between landlord and tenant. Common for second-generation restaurant space where infrastructure already exists but the prior operator has fully exited.
Lease assignment
You take over the remaining term from the current tenant, often with equipment and build-out in place. Faster to open, but landlord consent and transfer fees are required.
Sublease
You lease from the current tenant, not the landlord. Useful for pop-ups or short tests, but the primary tenant remains liable and landlord approval is still usually required.
Pre-LOI checklist
- •Confirm hood type, grease trap, walk-in, and gas capacity
- •Review NNN/CAM charges and annual escalation caps
- •Verify liquor license transfer rules for the municipality
- •Inspect equipment before signing a letter of intent
- •Clarify personal guarantee requirements and release options