Is the Managing Owner individually bound by the obligations of the Bojangles franchisee agreement?
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
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the Managing Owner is individually bound by the obligations of the franchisee agreement. The franchisee must designate an individual to serve as the Managing Owner, subject to certain conditions. The Managing Owner must own a majority equity interest in the franchisee. If no owner has a majority stake, the Managing Owner should hold the next highest percentage of equity.
The Managing Owner is the primary point of contact between the franchisee and Bojangles, possessing the authority to make binding decisions on financial, operational, and legal matters related to the franchised business. To qualify for this role, the Managing Owner must successfully complete Bojangles's initial training program. The Managing Owner has to execute the Franchise Agreement, which makes them individually responsible for all the franchisee's obligations outlined in the agreement.
Bojangles retains the right to approve or disapprove any person as Managing Owner. If the Managing Owner cannot fulfill their obligations or no longer qualifies, the franchisee must appoint a replacement Managing Owner who meets the same conditions and completes the initial training program within 180 days. This ensures that Bojangles has a direct line of accountability and that a qualified individual is always responsible for the franchise's operations and compliance with the franchise agreement.