What equity interest must the Managing Owner hold in the Bojangles franchise?

According to Bojangles's 2025 Franchise Disclosure Document, the Managing Owner must meet specific equity interest requirements. If the franchisee has an owner with a majority equity interest, the Managing Owner must possess that majority equity interest during their entire term as Managing Owner. However, if no single owner holds a majority equity interest, the Managing Owner is required to hold the next highest percentage of equity in the franchise during their tenure.

This requirement ensures that the Managing Owner has a significant stake in the financial performance and overall success of the Bojangles franchise. By mandating either a majority equity interest or the next highest percentage, Bojangles aims to align the Managing Owner's interests with those of the franchise, encouraging them to actively manage and grow the business. This structure also provides the Managing Owner with the authority to make key decisions and bind the franchisee in financial, operational, and legal matters.

For a prospective Bojangles franchisee, this condition highlights the importance of carefully selecting a Managing Owner who is both qualified and has a vested interest in the franchise's success. It also underscores the need for a clear ownership structure that complies with Bojangles's requirements. Franchisees should consider these equity requirements when structuring their business and choosing a Managing Owner to ensure compliance with the franchise agreement.

It is also important to note that the Managing Owner must be approved by Bojangles and must complete the initial training program. This ensures that the Managing Owner is not only financially invested but also properly trained and authorized to manage the franchise effectively.