Is a Bojangles franchisee permitted to have two owners who each own 50% of the ownership interests in the Franchisee?

According to Bojangles's 2025 Franchise Disclosure Document, a franchisee cannot be owned by two owners who each possess 50% of the ownership interests. Bojangles requires the franchisee to maintain a current list of all owners of record. This list must include all members if the franchisee is a limited liability company, as well as all beneficial owners of any class of securities. The franchisee must furnish this list to Bojangles upon request.

This restriction ensures that there is a clear decision-making authority within the franchise. Typically, franchisors want to avoid situations where deadlock or disagreements between equal owners could negatively impact the operation of the franchise. By preventing a 50/50 ownership split, Bojangles aims to promote efficient management and clear lines of responsibility.

Furthermore, Bojangles requires the franchisee to designate a Managing Owner who will be the primary point of contact with the franchisor and have the authority to bind the franchisee on all matters. The Managing Owner must own a majority equity interest in the Franchisee. 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. This requirement reinforces the need for a single individual with controlling interest or at least the largest minority stake to be in charge.