What is the definition of a 'Managing Owner' for a Best In Class Education Center franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
"Managing Owner" means the Owner you designate and we approve with primary responsibility for the overall management and supervision of your Center in accordance with §8.1.
8. MANAGEMENT AND STAFFING.
- 8.1. Owner Participation. You must designate an Owner with primary responsibility for the management and operation of your Center (the "Managing Owner"). The Managing Owner must:
- (a) be approved by us after attending an in-person Discovery Day at our corporate headquarters;
- (b) have binding decision-making authority on matters involving your Center;
- (c) successfully complete all training programs we require;
- (d) teach at least one (1) class at the Center on a regular basis during the initial 12 months after opening;
- (e) provide direct onsite management of your Center on a full-time basis until your Center has satisfied the minimum performance requirements set forth in §12 for at least one (1) year; and
- (f) dedicate best efforts to the management of the Center after satisfying the criteria in §8.1(e) above (we strongly recommend the Managing Owner continue to dedicate full-time efforts); and
- (g) at all times own at least 20% of the Equity Interests in the Business or Franchisee Entity, unless we waive this requirement.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, a 'Managing Owner' is defined as the owner the franchisee designates and Best In Class Education Center approves, who holds the primary responsibility for the overall management and supervision of the center.
To be approved as a Managing Owner, the designated individual must attend an in-person Discovery Day at the corporate headquarters. They must also possess binding decision-making authority regarding the center's operations and successfully complete all required training programs. During the first year after opening, the Managing Owner is required to teach at least one class at the center on a regular basis.
Furthermore, the Managing Owner must provide direct, full-time, on-site management until the center meets the minimum performance requirements outlined in Section 12 of the franchise agreement for at least one year. After this initial period, while dedicating full-time efforts is strongly recommended, the Managing Owner must continue to dedicate their best efforts to the center's management. Finally, the Managing Owner must own at least 20% of the equity interests in the business or franchisee entity, although Best In Class Education Center may waive this requirement.