Your source it too close to the beam splitter. You said “localized fringes” so you must be using an extended source. You must be viewing the fringes through a telescope or other imaging arrangement to view the image which is located on the surface of the beam splitter (Born and Wolf, 6th edition, p301).
When viewed through a lens, an extend source produces the same fringe pattern as a point source. (Imagine the extended source being imaged with pin-hole lens on an image plane. Only one ray from each point of the source reaches the image plane, except those destructively interfered in the interferometer.)
Straight fringes are produced by plane-wave light as produced by a laser or a point source located a long way away. If you focused your laser beam, the image will be located at the focal point. To get plane wave light the image (or light source) has to be a long way away.
You could look at http://www.colorado.edu/physics/phys5430/phys5430_sp01/PDF%20files/Michelson%20Interferometer.pdf, p5.7. For non curved fringes rp would tend to infinity which would happen if ds were very large.