What equity interest must the Managing Owner hold in the Bojangles franchise to qualify for the position?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Franchisee shall designate an individual to serve as Franchisee's "Managing Owner", subject to the following conditions:
- (1) The Managing Owner shall own a majority equity interest in Franchisee during the entire period s/he serves as Managing Owner. If Franchisee does not have an owner with a majority equity interest, the Managing Owner shall own the next highest percentage equity interest in Franchisee during the entire period s/he serves as Managing Owner;
- (2) The Managing Owner will be the person with whom Franchisor will communicate and will have the authority to bind Franchisee with respect to all financial, operational and legal matters related to the Franchised Business and this Agreement. The Managing Owner may also serve as Franchisee's Designated Operator as defined below provided that the Managing Owner meets the criteria for both positions independently;
- (3) The Managing Owner must attend and successfully complete, to Franchisor's satisfaction, the initial training program offered by Franchisor;
- (4) The Managing Owner shall execute this Agreement, and shall be individually bound by all obligations of Franchisee hereunder;
- (5) No person shall become a Managing Owner unless approved by Franchisor; and
- (6) The Managing Owner as of the Effective Date is identified on Exhibit A. If the Managing Owner is unable, or elects not, to continue to meet his/her obligations hereunder, or if, in Franchisor's sole discretion, the Managing Owner no longer qualifies to act as such, Franchisee shall promptly designate another Managing Owner subject to the same conditions and qualifications listed above. Franchisee's replacement Managing Owner must successfully
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 franchise must meet specific equity requirements. The Managing Owner must own a majority equity interest in the franchise during their entire tenure in the role. However, if no owner possesses a majority equity interest, the Managing Owner must hold the next highest percentage of equity in the franchise.
This requirement ensures that the Managing Owner has a significant stake in the success of the Bojangles franchise, aligning their interests with those of the franchisor and other owners. By mandating a majority or the next highest equity interest, Bojangles aims to have a highly invested individual overseeing the financial, operational, and legal aspects of the business.
In practical terms, a prospective franchisee should carefully consider the equity structure of their ownership group. If planning to appoint a Managing Owner who does not already hold a majority stake, the franchisee needs to ensure that the designated individual has the highest possible equity percentage among the owners. This could involve restructuring ownership or negotiating equity stakes to comply with Bojangles's requirements. The franchisor's approval is needed for any Managing Owner.
This equity requirement is a critical factor in the selection and appointment of a Managing Owner, highlighting the importance Bojangles places on having a committed and financially invested individual in this key leadership role. Franchisees should be prepared to provide documentation and evidence of the Managing Owner's equity stake to Bojangles for approval.