What is the definition of a 'Managing Owner' for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
NCHISE BUSINESS**
You must own your Beverly Ann's Cookie Franchise through a legal entity. The sole purpose of your legal entity will be the development and operation of a Beverly Ann's Cookie Franchise. The Beverly Ann's Cookie Franchise shall be managed by one of your owners who is a natural person with at least a 51% ownership interest and voting power in the entity ("Managing Owner"). During the term of the Franchise Agreement, the Managing Owner shall directly supervise and participate in the day-to-day operation of the Beverly Ann's Business.
Because franchisees who have actually been owner/operators in the past have generally proven to have greater success than passive owners, we require you or Managing Owner to be an active owner and operator of your Beverly Ann's Business for at least the first 60 days that you operate as a Beverly Ann's Cookie franchisee.
Under certain circumstances, after the first 60 days of operation, we may allow you to appoint a designated manager ("Designated Manager") who has been approved by us, to run the day-to-day operations of the Beverly Ann's Business. The Designated Manager must successfully complete our Beverly Ann's Culinary Class training program (See Item 11). The Designated Manager need not have an ownership interest in the Beverly Ann's Business. If you replace a Designated Manager for any reason, the new Designated Manager must satisfactorily complete our Beverly Ann's Culinary Class training program at your own expense.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 48–49)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, a 'Managing Owner' is defined as one of the owners of the legal entity that owns the franchise, who is a natural person with at least a 51% ownership interest and voting power in the entity. The legal entity's sole purpose must be the development and operation of the Beverly Ann's Cookie Franchise.
This Managing Owner is required to directly supervise and participate in the day-to-day operations of the Beverly Ann's Cookie business throughout the term of the Franchise Agreement. This requirement ensures that an individual with a significant stake in the business is actively involved in its management.
Beverly Anns Cookie emphasizes the importance of active owner/operators, requiring the franchisee or Managing Owner to be actively involved in the business for at least the first 60 days of operation. After this initial period, a franchisee may appoint a Designated Manager, subject to franchisor approval and completion of the Beverly Ann's Culinary Class training program, to handle day-to-day operations. The Designated Manager does not need to have an ownership stake in the business.