Must a Beverly Anns Cookie franchisee own their franchise through a legal entity?
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 the 2025 Beverly Anns Cookie Franchise Disclosure Document, franchisees are required to own their franchise through a legal entity. The FDD specifies that the sole purpose of this legal entity must be the development and operation of the Beverly Ann's Cookie franchise.
Furthermore, Beverly Anns Cookie mandates that the franchise be managed by a 'Managing Owner,' who must be a natural person holding at least a 51% ownership interest and voting power within the legal entity. This Managing Owner is responsible for directly supervising and participating in the day-to-day operations of the Beverly Ann's Business.
Beverly Anns Cookie requires active owner/operators 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 oversee daily operations. However, the Designated Manager is not required to have an ownership stake in the business.