Must a Manager hired for a Best In Class Education Center own an equity interest in the franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
At all times during normal business hours, either the Managing Owner or a Manager must be present at the Center to provide onsite management and supervision. The Managing Owner must monitor and supervise each Manager to ensure the Center is operated in compliance with the Franchise Agreement and Manual. We do not require that the Manager own an equity interest in the franchise.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 36–37)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center FDD, a Manager is not required to have an equity interest in the franchise. The FDD specifies that while a Managing Owner must hold a minimum 20% ownership interest in the franchised business (unless this requirement is waived by Best In Class Education Center), this requirement does not extend to Managers.
However, any Manager hired by a Best In Class Education Center franchisee must be approved by Best In Class Education Center, meet the company's minimum criteria and qualifications, successfully complete all required training programs, and sign a Confidentiality Agreement. Additionally, either the Managing Owner or a trained Manager must be present at the Center during normal business hours to provide onsite management and supervision.
This distinction between the Managing Owner and a Manager provides flexibility for franchisees in structuring their business. The equity requirement for the Managing Owner ensures a vested interest in the success of the Best In Class Education Center business, while the absence of such a requirement for Managers allows franchisees to hire qualified personnel without requiring them to invest in the franchise.