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    Type of lease agreement would be most effective for a pizza place

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    Out of five important types of lease agreements. Which would be most effective for a pizza place? Why?

    © BrainMass Inc. brainmass.com March 4, 2021, 10:29 pm ad1c9bdddf

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    It depends on the situation but here are a couple of thoughts:

    1) If possible the absolute least risky for the pizza place would be to take over an exisitng restaurant and do a percentage rent only deal. Usually that means paying any where from 6% to 10% of gross sales. Further if they can negotiate some form of "kick out" wherein if they do meet certain sales thresholds they can vacate the space with no further lease obligations. Also in this depressed economy the pizza place should try to secure a long term agreement (most restaurants do 10-year primary term deals with 2 to 3 five year options) before the economy rebounds and ...

    Solution Summary

    The types of lease agreements that would be most effective for a pizza place.