This form is a franchise registration renewal questionnare. The form contains sections concerning the franchisor, business experience, and litigation.
Michigan Franchise Registration Renewal Questionnaire
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Multi-State
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US-1-03-STP
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FAQ
The great majority of franchise agreements contain a renewal clause that allows franchisees to require their franchise agreements be renewed. Usually, the only exceptions are those franchise agreements that are granted for 20 years or more.
Continuing franchise fees ? Fees that are received for ongoing services provided by the franchisor to the franchisee. These costs will be expensed when incurred.
Sample questions to ask a franchisor Will the franchisor help me find a good location? ... Can you tell me more about your training program? ... Can you provide extra financial assistance? ... How are disagreements resolved? ... Other Articles From AllBusiness.com: What's a typical day like for your franchise?
If you are renewing the franchise, you need to update your business plan, review your financials, and implement any changes or improvements required by the franchisor. You also need to sign a new franchise agreement and pay any fees or charges.
A renewal fee is the fee a franchisee is often asked to pay if they wish to renew their franchise agreement when the initial term or any subsequent renewed term comes to an end - provided the franchisor agrees to the renewal.
One of the crucial provisions mentioned in the franchise agreement is the clause of renewal which provides the option to either renew the agreement beyond the initial contract (typically 5-15 years) or disband it altogether before its expiration date.
Michigan does not have a ?renewal? filing process, so franchisors must complete this notice filing annually. Your franchise will be registered when you receive confirmation of your filing from the Department of the Attorney General.
It sounds like a long time, but those years will fly by. Do you know what will happen to your business when your Franchise Agreement term ends? Because once the agreement ends, you will lose the right to operate the business using the franchise products and branding unless you sign another agreement.
