For Bojangles, what equity interest must the Managing Owner maintain in the Franchisee during their tenure?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the Managing Owner must maintain a certain equity interest in the Franchisee during their tenure. Specifically, the Managing Owner is required to own a majority equity interest in the Franchisee throughout their time in the role. This means they must hold more than 50% of the ownership.
However, there is an exception to this rule. If the Franchisee does not have an owner with a majority equity interest, the Managing Owner must own the next highest percentage equity interest in the Franchisee during their entire period as Managing Owner. This ensures that the Managing Owner always has a significant stake in the business, even if they don't have a majority stake.
This requirement ensures that the Managing Owner is fully invested in the success of the Bojangles franchise and has the authority to make decisions. It also aligns their interests with those of the franchisor, as they are responsible for the financial, operational, and legal matters related to the franchised business.