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 a corporation and it shall be known as _____________.

the franchise will conduct business under said business name and it will be used for the franchisees sole use for ______________________ 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 ____% of the voting corporation stock.  If the franchisee has less than ____% of the voting stock then the franchiser will reserve the ability to negate the agreement.

In the case of franchiser allowing any other franchises to function beyond areas determined in the agreement, franchisee will have control of at least ____% of the voting stock of any and all corporations and/or corporations formed outside and beyond the determined area in the prior agreement.
 

Franchisee must produce a list of any and all potential shareholders and the amount each potential shareholder will hold upon delivery of the 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 share holdings or shareholders prior to the changes being employed.

 

 

____________________________                           _______________

Franchiser                                                                   Dated

____________________________                           _______________

Franchisee                                                                   Dated

____________________________                           _______________

Witness                                                                       Dated

____________________________                           _______________

   Witness                                                                       Dated