Does a Designated Manager for a Beverly Anns Cookie franchise need to have an ownership interest in the business?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Beverly Anns Cookie FDD, a Designated Manager is not required to have an ownership interest in the franchise. However, initially, Beverly Anns Cookie requires the franchisee or a Managing Owner with at least 51% ownership and voting power to actively manage and operate the business for the first 60 days.
After the initial 60-day period, a franchisee can appoint a Designated Manager, subject to Beverly Anns Cookie's approval, to oversee the daily operations. This Designated Manager must successfully complete the Beverly Ann's Culinary Class training program. If the franchisee replaces the Designated Manager, the new manager must also complete the training program at the franchisee's expense.
It's important to note that any Designated Manager, along with any officer not holding equity in the franchise, must sign a System Protection Agreement. This agreement, along with a Confidentiality Agreement for employees and a Franchise Owner Agreement for owners and their spouses, ensures the protection of Beverly Anns Cookie's confidential information and adherence to the Franchise Agreement terms.