Does the Bojangles franchisor need to approve a person to become a Managing Owner?
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 complete Franchisor's initial training program within one hundred eighty (180) days after being appointed as Franchisee's Managing Owner.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, any person designated as a Managing Owner must be approved by Bojangles. The Managing Owner is a key figure, acting as the primary contact between the franchisee and Bojangles, and possessing the authority to make binding decisions on financial, operational, and legal matters related to the franchised business.
In addition to franchisor approval, the Managing Owner must meet several other conditions. They must maintain a majority equity interest in the franchise, or if no owner holds a majority, they must have the next highest percentage of equity. The Managing Owner is also required to attend and successfully complete Bojangles's initial training program. Furthermore, they must execute the Franchise Agreement and be individually bound by its obligations.
If a Managing Owner is unable to fulfill their obligations or no longer qualifies in Bojangles's assessment, the franchisee must promptly appoint a replacement. This replacement Managing Owner is subject to the same approval process and qualifications as the original, including completing the initial training program within 180 days of appointment. The initial Managing Owner is identified on Exhibit A of the Franchise Agreement.
This requirement ensures that Bojangles maintains a consistent standard of leadership and operational knowledge across all its franchises. By requiring approval and training, Bojangles aims to protect its brand and system standards, which is a common practice in franchising.