What equity interest must the Managing Owner hold in the Bojangles developer entity?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Developer shall designate an individual to serve as Developer's "Managing Owner", subject to the following conditions:
- (1) The Managing Owner shall own a majority equity interest in Developer during the entire period s/he serves as Managing Owner. If Developer does not have an owner with a majority equity interest, the Managing Owner shall own the next highest percentage equity interest in Developer during the entire period s/he serves as Managing Owner;
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the Managing Owner of a Bojangles developer entity must maintain a specific equity interest. The Managing Owner is required to own a majority equity interest in the Developer throughout their tenure. This means the Managing Owner must possess more than 50% of the ownership stake in the developer entity.
However, there is an exception to this rule. If the Developer does not have an owner with a majority equity interest, the Managing Owner is required to own the next highest percentage equity interest in the Developer during the entire period they serve as Managing Owner. This provision accommodates situations where no single owner holds a majority stake, ensuring that the Managing Owner still has a significant ownership position.
This requirement ensures that the Managing Owner has a vested interest in the success of the Bojangles development and operations. By holding a substantial equity stake, the Managing Owner is incentivized to effectively manage the business and uphold the standards set by Bojangles. This also provides the Managing Owner with the authority to make key decisions and bind the Developer in financial, operational, and legal matters, as they are the primary point of contact between the Developer and Bojangles.