I was desperate enough to rent space from a coffee shop, giving them a percentage of my profits. It was a horrible experience! They always think your making more than you are....and that your hiding something from them. Most people don't understand the lower profit margins/higher labor costs of bakeries.....and good luck trying to get them to understand that. They watch everything going through your doors and dream your profits are bigger than they really are.
In time, if you are successful you'll feel trapped and angry that someone gets a part of your hard work for nothing. The landlord isn't going to take money out of his pocket to fix up your place. Your better to keep your money and invest improvement into your space yourself, you choose what improvements are needed the most.
I understand your reasoning and thoughts about this, it seems less risky and has less cash out put from you. BUT if you really think hard about this, this arrangement is best for you only if you fail. You shouldn't put all that effort into something where you can possibly fail. Don't give yourself an easy out situation, it allows you to fail and penalizes you to succeed.
Do you have experience being a short order cook running a breakfast and lunch spot? That's a completely different set of skills and equipment layout than baking. It will require more staff too.