SUBLEASE AND BUSINESS MANAGEMENT AGREEMENT
This Sublease and Business Management Agreement (“Agreement”) is entered into on [Date] by and between XXX whose address for the purposes of this agreement shall be ZZZ, (hereafter referred to as “Owner”) and [Manager-A] whose address for the purposes of this agreement shall be [insert address] (hereafter referred to as “Manager”)
- Background and Purpose
- Owner is the sole owner and operator of the business inside of a commercial property located at [Address], which includes a liquor license, gaming license, and business license.
- The property operates on two different floors, with Manager-A being responsible for the operations of the lower level and Owner being responsible for the operation of the second floor.
- The purpose of this Agreement is to set forth the terms and conditions for the sublease and business management of the lower level of the property by Manager.
- Term
- The term of this Agreement shall commence on [Date] and shall continue for a period of [Duration].
- This Agreement may be renewed by mutual agreement of the parties every 3 years by notice in writing.
- Sublease
- Manager-A hereby leases from Owner the lower level of the property located at [Address] for the purpose of conducting a business that includes liquor, gaming, and food.
- Manager shall not use the property for any other purpose without Owner’s prior written consent.
- Manager shall pay rent to Owner in the amount of [Rent] per month, due on the [Due Date] of each month.
- Manager shall also pay a security deposit of [Deposit] to Owner, which shall be returned to Manager at the end of the term, less any deductions for damages caused by Manager to the property or any unpaid rent or fees.
- Manager shall comply with all applicable laws, rules, and regulations concerning the use and occupancy of the property.
- Manager shall indemnify, defend, and hold harmless Owner from and against any and all claims, damages, liabilities, and expenses arising out of or in connection with Manager’s use of the property, including but not limited to personal injury, property damage, and violation of any laws or regulations.
- Manager shall obtain and maintain at its own expense, commercial general liability insurance and liquor liability insurance with minimum limits of [Insurance Limits] and [Liquor Insurance Limits], respectively. Manager shall provide proof of such insurance to Owner upon request.
- Business Management
- Manager shall be solely responsible for the operation of the business located on the lower level of the property, including but not limited to hiring and managing employees, ordering and maintaining inventory, and ensuring compliance with all applicable laws, rules, and regulations.
- Manager shall operate the business in a manner consistent with industry standards and in compliance with all applicable laws, rules, and regulations.
- Owner shall have no responsibility for the operation of the business, including but not limited to the actions of Manager or its employees, compliance with laws or regulations, or the financial performance of the business.
- Manager shall use its best efforts to maximize the profitability of the business and shall be entitled to retain all profits derived from the operation of the business.
- Manager shall maintain accurate records of all financial transactions related to the operation of the business and shall provide Owner with access to such records upon request.
- Manager shall be responsible for all taxes, fees, and expenses related to the operation of the business.
- Maintenance and Repair and Modifications
- Manager-A and Manager-B shall have the right to make reasonable modifications and improvements to the leased premises, provided that they do not violate any applicable laws or regulations and are approved in advance by Owner in writing. Any such modifications or improvements shall be made at Manager’s expense and shall become the property of Owner upon installation.
- Manager-A and Manager-B shall be responsible for maintaining and repairing any modifications or improvements made to the leased premises during the term of this Agreement. Upon termination of this Agreement, Manager-A and Manager-B shall surrender possession of the leased premises, including any modifications or improvements made by them, in good condition, reasonable wear and tear excepted.
- Manager-A and Manager-B shall be liable for any damage caused to the leased premises by reason of their negligence or willful acts or omissions in connection with any modifications or improvements made by them. Any damage caused by Manager-A and Manager-B shall be repaired at their expense and in a manner satisfactory to Owner. In the event that any modifications or improvements made by Manager-A and Manager-B cannot be removed without damage to the leased premises, such modifications or improvements shall become the property of Owner upon termination of this Agreement, and Manager-A and Manager-B shall have no claim to them.
- Default and Termination
- If Manager defaults in the payment of rent or any other obligation under this Agreement, Owner may terminate this Agreement immediately upon written notice to Manager. Manager shall be liable for any damages incurred by Owner as a result of Manager’s default, including but not limited to loss of rent and expenses incurred to re-let the lower level of the property.
- If Manager breaches any provision of this Agreement, Owner may terminate this Agreement upon written notice to Manager if such breach is not cured within a period of 7 (seven) days after written notice of the breach is given to Manager. Owner shall be entitled to all remedies available at law or equity in the event of a breach by Manager.
- If any action or proceeding is commenced to enforce or interpret this Agreement, Owner shall be entitled to recover its reasonable attorneys’ fees and costs incurred in connection with such action or proceeding.
- In the event that Manager defaults under this Agreement, including but not limited to failure to comply with applicable laws or regulations, Owner shall have the right to terminate this Agreement immediately upon written notice to Manager. Upon termination, Manager shall forfeit its security deposit and any other fees or charges paid to Owner.
- Manager agrees to operate the lower level of the business in accordance with all applicable laws and regulations, and to be fully responsible and liable for any violations, fines, penalties, or damages arising from their management of the lower level. Manager shall indemnify and hold harmless Owner, Landlord and Manager-B from any and all claims, demands, or causes of action arising from Manager-A’s management of the lower level.
- In the event that any violations, fines, penalties, or damages arise from Manager-A’s management of the lower level, Manager-A shall be solely responsible for paying all fees, fines, penalties, and damages, and shall reimburse Owner and Manager-B for any fees, fines, penalties, or damages incurred by them as a result of Manager-A’s actions or omissions. Manager-A acknowledges and agrees that their failure to comply with this provision may result in the loss of their security deposit and the immediate termination of this Agreement.
- LIABILITY:
- Manager shall be solely responsible for the operation of the lower level of the Premises and all acts or omissions of Manager, its employees, agents, and guests in connection with such operation.
- Manager shall indemnify, defend, and hold Owner and Landlord harmless from and against any and all claims, damages, expenses, and liabilities (including reasonable attorneys’ fees and costs) arising out of or in connection with the operation of the lower level of the Premises by Manager, its employees, agents, and guests, including, without limitation, any claims for personal injury, property damage, or violation of any laws or regulations. In no event shall Owner or Landlord be liable for any acts or omissions of Manager, its employees, agents, or guests in connection with the operation of the lower level of the Premises.
- General Provisions
- This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties relating to the subject matter of this Agreement.
- This Agreement may not be amended, modified, or supplemented except in writing signed by both parties.
- This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors, and assigns.
- This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois.
- Any notices or other communications required or permitted by this Agreement shall be in writing and shall be deemed to have been given when delivered in person or deposited in the United States mail, postage prepaid, addressed as follows:
If to Owner: [Owner’s Name and Address]
If to Manager: [Manager’s Name and Address]
- This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
XXX
By: YYY
Name: ____________________________
Title: _____________________________
Date: _____________________________
[Manager-A]
By: ______________________________
Name: ____________________________
Title: _____________________________
Date: ____________________________
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