Who is the franchisee acting on behalf of, upon execution of the Bojangles franchise agreement, in addition to itself?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE: [ENTITY NAME], a [State] [Type of Entity] By: [Name] [Title] MANAGING OWNER OF FRANCHISEE, in his/her individual capacity [Name] [OTHER SHAREHOLDERS OR MEMBERS] OF FRANCHISEE, in his/her individual capacity**:** [Name] [Name]
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, when a franchisee executes the franchise agreement, they are acting on behalf of themselves as an entity, as well as in their capacity as the Managing Owner. The Managing Owner is individually bound by all obligations of the franchisee under the agreement. Other shareholders or members of the franchisee entity also sign the agreement in their individual capacities.
This means that the Managing Owner takes on personal responsibility for ensuring the franchise complies with the terms of the agreement. This is a significant commitment, as any breaches of the agreement could have personal legal and financial repercussions for the Managing Owner and other shareholders or members.
Prospective Bojangles franchisees should carefully consider the implications of this individual commitment and seek legal advice to fully understand their obligations and potential liabilities before signing the franchise agreement. It is also important to note that the Managing Owner must own a majority equity interest in the franchisee, or the next highest percentage equity interest if no owner has a majority stake, and must be approved by Bojangles.