Restaurant commercial lease France 2026: key money, lease right, accounting

For a restaurant, the commercial lease is no legal detail: it is often the most valuable asset and the most structuring cost. A good location with a controlled rent makes the value of the business; a fragile lease can wipe out a profitable project. Here is the restaurant commercial-lease guide for France in 2026: lease right, key money, accounting, indexation and sensitive clauses.

The commercial lease falls under articles L145-1 et seq. of the Commercial Code. Its minimum term is 9 years, with a tenant break option at each three-year period (hence "3-6-9"). The status strongly protects the commercial tenant, notably through the right to renewal: at expiry, a landlord refusing renewal must in principle pay an often substantial eviction indemnity. For a restaurant, several lease points are decisive: the permitted use (catering must be authorised, with fume extraction and any terrace), the allocation of charges and works between landlord and tenant, the renewal terms and rent indexation, and the change-of-use and assignment clauses.

This is the most frequent confusion, with direct accounting and tax consequences. The lease right is the sum paid to the outgoing tenant to take over their lease — bought because the existing lease is advantageous (below-market rent, good location, favourable terms). It is the price of continuity of an attractive lease. Key money (entry premium) is paid to the landlord, on entry, when a new lease is concluded. Its legal nature is ambivalent: it can be analysed as prepaid additional rent or as an indemnity (consideration for a commercial advantage, comparable to a lease right). This distinction governs the accounting and tax treatment.

The treatment differs by nature. The lease right is recorded as an intangible fixed asset (account 206) and is not depreciable, since its value is not deemed to decline mechanically over time; it may, however, be impaired if the location loses value. Key money follows its qualification: if it is additional rent, it is deducted as an expense (spread over the lease term); if it is an indemnity akin to a permanent entry right, it is capitalised and not depreciable. Lease drafting and the parties' intention are therefore decisive — the same payment can be a deductible expense or a non-depreciable asset depending on its qualification. We secure this systematically on entry or acquisition — see our article on buying a restaurant.

Commercial-lease rent is revised per the index set in the contract, most often the commercial rent index (ILC) published by INSEE. The three-year review and capping frame increases, except in de-capping cases. For a restaurant, tracking indexation has two purposes: avoiding paying an incorrect indexation (landlords sometimes apply a wrong index or base) and anticipating the rent increase in the cash plan, rent being a heavy fixed cost (ideally below 8–10% of revenue).

Beyond rent, certain clauses make the lease's value — or trap. The permitted-use clause: too narrow, it bars widening the activity (adding delivery, a terrace, a bar) without consent. The assignment clause: it conditions resale of the business; a landlord-approval clause can complicate exit. The major-works allocation (article 606): a lease pushing major repairs onto the tenant is a major financial risk. The joint-guarantee clause on assignment: the outgoing tenant may remain guarantor of the buyer's rent for a period. Reading these clauses before signing or buying avoids hidden costs that often exceed the price of the business itself.

In catering, rent is a fixed, incompressible cost: it falls due whether the restaurant serves fifty covers or none. This is precisely why the sector uses a target ratio — rent should not exceed 8 to 10% of net revenue. Beyond that, the net margin, already structurally thin (see our restaurant profitability article), is fundamentally compromised. This ratio covers the full occupancy cost: base rent, service-charge estimates, any landlord-reclaimed property tax, and any separate signage fee — not simply the headline rent.

The key point is that a rent is never cheap or expensive in absolute terms, only relative to the revenue it supports. A monthly rent of €4,500 can be a sound deal for a restaurant turning €700,000; it can be a dead end for one turning €300,000. Lease analysis must always incorporate a realistic revenue forecast — not the best-case scenario. We routinely reconstruct this ratio across three revenue scenarios (downside, central, upside) before any entry or acquisition decision.

Lease expiry is an underestimated risk point. At the 9-year term, two outcomes are possible. If the landlord renews, rent can be revised to the market rental value, which may exceed the indexed rent accumulated to that point. The law frames de-capping cases, but certain situations allow freer revision — notably if the lease term exceeded 9 years or if the commercial characteristics of the location have materially changed. An unanticipated renewal can translate into a sharp rent shock. If the landlord refuses renewal, they must in principle pay an eviction indemnity — potentially worth several years of revenue under case law, covering the loss of goodwill, relocation costs and trading disruption. In practice, the calculation generates adversarial expert opinions and lengthy disputes.

Practically: open renewal negotiations 12 to 18 months before expiry (the required notice is 6 months) to avoid accepting the landlord's terms; have de-capping clauses analysed before agreeing to a lease exceeding 9 years; and provision, in the medium-term cash plan, for the risk of a significant rent increase at renewal. This is a real financial risk, not just a legal one.

For a restaurant, the commercial lease is both an asset (lease right) and a structuring cost (rent). Distinguish lease right (non-depreciable asset) from key money (expense or asset depending on its nature), watch the ILC indexation, and read the sensitive clauses (use, assignment, works) before signing. A wrong accounting treatment or a misread clause often costs more than the lease itself. To secure your lease and its treatment, see our restaurant accounting support and our complete 2026 restaurant accounting guide.

Updated 3 June 2026. This article sets out the general principles of the restaurant commercial lease; the qualification of key money and the accounting treatment depend on the lease drafting and your situation. Sources: Commercial Code, Service-public.fr, BOFiP, INSEE.