Michigan Franchise Fees for Partnerships Associations Limited are fees paid to the state of Michigan for engaging in certain business activities. These fees must be paid annually and are based on the amount of business done in Michigan. They are typically composed of two parts: the Initial Franchise Fee and the Annual Renewal Fee. The Initial Franchise Fee is a one-time fee paid at the start of the business relationship and is calculated based on the amount of business done in Michigan. The Annual Renewal Fee is due annually and is calculated based on the same amount of business done in Michigan. Different types of Michigan Franchise Fees include: Limited Partnership Fees, Limited Liability Company Fees, and Nonprofit Corporation Fees.