What is the sole purpose of the legal entity that owns 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 the 2025 Beverly Anns Cookie Franchise Disclosure Document, if a franchisee chooses to own their franchise through a legal entity, the entity's sole purpose must be to develop and operate the Beverly Ann's Cookie franchise. This means the legal entity cannot be used for other business ventures.
Beverly Anns Cookie also requires that the franchise be managed by a Managing Owner who is a natural person holding at least 51% ownership interest and voting power in the entity. This Managing Owner must directly supervise and participate in the day-to-day operations of the Beverly Ann's Business.
Beverly Anns Cookie mandates active owner involvement, especially during the initial phase. For at least the first 60 days of operation, the franchisee or Managing Owner must be actively involved in running the Beverly Ann's Business. After this initial period, a Designated Manager, approved by Beverly Anns Cookie and having completed the Beverly Ann's Culinary Class training program, may be appointed to handle day-to-day operations. However, the organizational documents must reflect that the Franchised Business will be the only business that the Entity may operate.