Intent to Form Corporation By Franchisee
The franchiser, _________, and the franchisee, _______, as set forth in their franchise agreement on ____________ and as witnessed by ________, have agreed to the following additional terms and conditions:
The franchisee will duly create corporation and shall be known as ______________. Franchisee will conduct business under said business name and will be used for the franchisees sole use in the following number of days ____, until satisfactory completion of franchisees training program if and when that said franchisee desires to sell any stock in the formed corporation the franchisee will maintain franchisee's said name and franchisee will control at least ___ percentage and ____ percent of voting of corporation stock. If the franchisee has less than ____ percent of voting stock than franchiser will reserve the ability to negate agreement.
In the case of franchiser allowing any other franchises to function beyond areas determined in agreement , franchisee will control under _________ at least _____ percent of the voting stock of any and all corporations and or corporations formed outside and beyond determined area in prior agreement.
Franchisee must produce a list of any and all potential shareholders and the amount each potential shareholder will hold upon delivery of corporate charter. Franchisee must include names, addresses of all potential shareholders and all must be free of ill character or repute.
Franchisee must include date and state of incorporation and any capital invested in said corporation. Franchisee must duly advise franchise of any alterations or changes in shareholdings or shareholders prior to changes being employed.