Your Actual Exposure: $280,000

A $6,000/mo restaurant lease doesn't create $6,000/mo in liability. It creates $280,000 in total exposure across rent, personal guaranty, restoration, and every other clause your landlord drafted to protect themselves — not you.

Where $280,000 Comes From

Remaining Rent$108,000
Personal Guaranty$108,000
Restoration$35,000
CAM Charges$18,000
Early Termination$36,000
Legal Fees$20,000
Holdover$36,000
Total Exposure$280,000

What Most People Miss

The use clause. Bar and nightclub leases often define permitted use so narrowly that you can't pivot your concept — even slightly — without landlord consent. A 'sports bar' use clause prevents you from running a cocktail lounge.

Key Risks in This Scenario

  • Liquor license tied to specific premises — if you lose the space, you lose the license
  • Sound system and bar build-out restoration can exceed $35,000
  • Late-night use clauses can trigger ADA and noise compliance obligations

How to Reduce Your Exposure

  • Negotiate broad use clause: 'food and beverage service, entertainment, and ancillary retail'
  • Cap personal guaranty at 18 months with annual 20% burn-down

Frequently Asked Questions

What happens to my liquor license if the landlord evicts me?
You lose your premises, and most liquor licenses are premises-specific. Transfer takes 60-120 days and isn't guaranteed. You could end up with a lease liability and no ability to operate.
Are bar leases typically triple net?
Frequently yes. In a NNN bar lease, you're paying base rent plus property taxes, insurance, and maintenance. On a $6,000 base rent, total monthly cost is often $7,500-$8,500.
What does bar restoration typically cost?
Bar tops, specialized plumbing, sound system wiring, and lighting rigs — plan for $25-50 per square foot to restore. A 700 sq ft bar space runs $17,500-$35,000.
Can I sublease a bar?
Only if your lease permits it. Most bar leases require landlord consent for sublease, and many landlords won't consent because of liquor license and liability concerns.
What is a 'good guy' clause and how does it help bar tenants?
A good guy clause lets you exit the lease with your personal guaranty released if you give 60-90 days notice and leave the space in good condition. It's your best protection if the bar concept doesn't work.