Is a Bojangles franchisee permitted to be owned by two owners who each own fifty percent of the ownership interests?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) Franchisee shall not be owned by two (2) owners who each own fifty percent (50%) of the ownership interests in Franchisee. Franchisee shall maintain a current list of all owners of record, including all members if Franchisee is a limited liability company, and all beneficial owners of any class of securities of Franchisee and shall furnish the list to Franchisor at such time as Franchisor may request.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee cannot be owned by two owners who each possess fifty percent of the ownership interests. This restriction is in place to ensure clear decision-making and operational control within the franchise. Bojangles requires a clear leadership structure, typically enforced through the designation of a 'Managing Owner' who holds a majority equity interest or the next highest percentage equity interest if no majority owner exists.
This Managing Owner is the primary point of contact with Bojangles and has the authority to make binding decisions on behalf of the franchisee. This individual must also complete Bojangles's initial training program and be approved by Bojangles. The Managing Owner structure ensures that there is always a responsible party accountable to Bojangles for the franchise's performance and compliance with the franchise agreement.
The requirement for a Managing Owner with a controlling interest is a common practice in franchising. It helps to avoid potential deadlocks or conflicts between equal partners that could negatively impact the operation of the franchise. By mandating a clear leadership role, Bojangles aims to maintain consistency and quality across its franchise network. This also streamlines communication and decision-making processes between the franchisee and Bojangles itself.
Prospective franchisees should carefully consider this ownership restriction and ensure that their ownership structure aligns with Bojangles's requirements. If two individuals intend to co-own a Bojangles franchise, they must structure their ownership in a way that one person has more than 50% ownership, or another individual has the highest percentage of ownership, to comply with the Managing Owner requirement. This is a critical aspect of the franchise agreement and must be adhered to throughout the term of the franchise.