In my 12 years drafting and reviewing commercial real estate documents across the United States, few forms create as much confusion—and carry as much financial exposure—as the commercial lease guaranty form. Whether you’re a landlord leasing a restaurant space in Milwaukee, Madison, or Green Bay, or a tenant opening a new location, a properly drafted guaranty can be the difference between collecting rent during tough times and suffering a total loss.
I’ve helped hundreds of Wisconsin property owners and restaurateurs protect their interests with airtight guaranties. Today, I’m giving you my battle-tested, attorney-vetted commercial lease guaranty form template—completely free to download and customize for any commercial lease agreement Wisconsin transaction, including restaurant leases.
Download the Free Wisconsin Commercial Lease Personal Guaranty Template (Word .docx)
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Restaurant tenants fail at dramatically higher rates than most other commercial categories. The Wisconsin Economic Development Corporation reports that approximately 30% of new restaurants close within the first year, and nearly 60% don’t survive past year three. When a restaurant tenant defaults on a five- or ten-year lease, landlords are frequently left with expensive build-out improvements, months of lost rent, and a space that’s difficult to re-lease.
A commercial lease guaranty form solves this problem by making an individual (usually the business owner) or another entity personally responsible for the tenant’s obligations. In Wisconsin, courts routinely enforce well-drafted guaranties—even against sophisticated borrowers who later claim they “didn’t understand” the document.
Over the years, I’ve negotiated both types extensively. Here are the main variations you’ll see in Wisconsin commercial leases:
| Feature | Unlimited (Absolute) Guaranty | Good-Guy Guaranty |
|---|---|---|
| Liability Scope | Full lease term + all damages, attorney fees, holdover rent | Limited to rent and charges until tenant vacates in good condition |
| Typical Use | New restaurateurs, weaker credit tenants | Strong operators willing to guarantee orderly exit |
| Landlord Preference | Strongly preferred | Accepted as compromise |
| Enforceability in WI | Fully enforceable (Wis. Stat. § 425.109) | Fully enforceable if clearly drafted |
After reviewing hundreds of guaranty disputes in Wisconsin courts, these are the non-negotiable provisions I always include:
Wisconsin treats commercial guaranties far more favorably to landlords than residential ones. Unlike residential leases governed by Wis. Stat. Ch. 704 and ATCP 134, commercial guaranties are pure contract matters. Courts apply standard contract interpretation rules and rarely find guaranties “unconscionable” in arms-length business transactions.
See McDonald v. Halvorson, 2018 WI App 34 (unpublished) – Wisconsin Court of Appeals enforced unlimited personal guaranty against restaurant owners despite tenant bankruptcy.
In my experience reviewing failed collections, these errors appear most frequently:
Restaurants present unique risks that demand stronger guaranty protection:
I always recommend requiring both personal guaranties from owners with >20% interest and a larger security deposit or letter of credit for restaurant tenants in Wisconsin.
The IRS has ruled that payments made under a lease guaranty are generally deductible as ordinary and necessary business expenses under IRC § 162 if made by a corporation or LLC. Individual guarantors, however, may only deduct payments to the extent they produce income or are connected with a trade or business (see IRS Publication 535, Business Expenses).
Source: IRS Publication 535 (2024)
Can a guaranty be capped at a specific dollar amount?
Yes. Many Wisconsin landlords cap guaranties at 12–24 months of rent plus re-letting costs.
Does a guarantor need separate counsel?
Not required, but sophisticated tenants frequently demand it—and judges look favorably on independent review.
Is electronic signature valid on Wisconsin commercial guaranties?
Yes. Wisconsin adopted the Uniform Electronic Transactions Act (Wis. Stat. Ch. 137).
A strong commercial lease guaranty form remains the single most effective tool for protecting landlords when leasing restaurant or retail space in Wisconsin. I’ve seen properly drafted guaranties collect millions in otherwise unrecoverable rent—and I’ve seen vague or missing ones cost landlords everything.
Download my free template today, customize it for your specific commercial lease agreement Wisconsin transaction, and sleep better knowing your investment is protected.
DISCLAIMER: This template and article are for informational purposes only and do not constitute legal advice. Laws change and each situation is unique. Always consult a licensed Wisconsin attorney before executing any commercial lease or guaranty document.
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