Is Beverly Anns Cookie obligated to agree to allow a franchisee to employ a Designated Manager?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to this Section, the Managing Owner shall directly supervise and participate in the day-to-day operation of the Franchised Business during the term of this Franchise Agreement. At your request, we may, but are not obligated to, agree for you to employ a Designated Manager after the first 60 days of operation (other than the Franchisee/Managing Owner) to operate the Franchised Business. The term "Designated Manager" means an individual with primary day-to-day responsibility for the Franchised Business' operations, and may be you (if you are an individual) or an Owner, officer, director, or employee of yours (if you are other than an individual). The Designated Manager shall have similar responsibilities as a Managing Owner. You must deliver to us an amended Attachment B accurately identifying such appointed Designated Manager. The Designated Manager will be obligated to devote his or her full time, best efforts, and constant personal attention to the Franchised Business' operations, and must have full authority in order to comply with this Franchise Agreement. You must not hire any Designated Manager or successor Designated Manager without first receiving our written approval of such Designated Manager's qualifications. Each Designated Manager must attend and complete our Initial Training and sign a System Protection Agreement, the current form of which is attached to the Franchise Disclosure Document in Exhibit H. You must forward to us a copy of each such signed agreement. If we determine, in our sole discretion, during or following completion of the Initial Training program, that your Designated Manager (if any) is not qualified to act as designated manager of the Franchised Business, then we have the right to require you to choose (and obtain our approval of) a new individual for that position. If you are required to appoint a new Designated Manager, you must do so within 30 days of the termination of the previous Designated Manager.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie is not obligated to agree to a franchisee's request to employ a Designated Manager. The FDD states that Beverly Anns Cookie "may, but [is] not obligated to, agree for you to employ a Designated Manager after the first 60 days of operation."
This means that while a franchisee can request to employ a Designated Manager after the initial 60 days of operation, Beverly Anns Cookie retains the discretion to approve or deny this request. The Designated Manager would have primary responsibility for the day-to-day operations and similar responsibilities to a Managing Owner. The franchisee must provide an updated Attachment B to identify the Designated Manager.
Furthermore, Beverly Anns Cookie must provide written approval of the Designated Manager's qualifications before they are hired. The Designated Manager must also attend and complete the Initial Training and sign a System Protection Agreement. Beverly Anns Cookie has the right to require the franchisee to choose a new individual for the position if they determine the Designated Manager is not qualified during or after the Initial Training program. If a new Designated Manager is required, the franchisee must appoint one within 30 days of the previous manager's termination.