Does the Bojangles Franchisor need to approve the person designated as 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, the franchisor's approval is required for any person designated as a Managing Owner. The Managing Owner is a key figure, acting as the primary point of contact between Bojangles and the franchisee, with the authority to make binding decisions on financial, operational, and legal matters.
Several conditions must be met for someone to qualify as a Managing Owner. They must either hold a majority equity interest in the franchise or, if no owner has a majority stake, possess the next highest percentage of equity. The Managing Owner is also obligated to execute the Franchise Agreement, thereby becoming individually bound by its terms. Furthermore, they must successfully complete Bojangles's initial training program to the franchisor's satisfaction.
If a Managing Owner can no longer fulfill their obligations or no longer qualifies in Bojangles's view, the franchisee must promptly appoint a replacement. This replacement Managing Owner is subject to the same conditions and qualifications as the original, including the requirement to complete the initial training program within 180 days of appointment. This rigorous approval process underscores the importance Bojangles places on having qualified and capable individuals managing their franchised restaurants.