What is the role of the Managing Owner in a Bojangles franchise?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Managing Owner is a key figure in the franchise operation. The Managing Owner must own a majority equity interest in the franchise. If no owner holds a majority stake, the Managing Owner must hold the next highest percentage of equity. This ensures that the Managing Owner has a vested interest in the success of the Bojangles business.
The Managing Owner serves as the primary point of contact between the franchisee and Bojangles. They have the authority to make binding decisions on behalf of the franchisee regarding financial, operational, and legal matters. The Managing Owner can also function as the Designated Operator if they meet the requirements for both roles. This dual role could streamline operations but also places significant responsibility on one individual.
The Managing Owner is required to attend and successfully complete Bojangles's initial training program. They must also sign the Franchise Agreement and are individually bound by its obligations. Bojangles must approve any person designated as a Managing Owner. If the Managing Owner can no longer fulfill their obligations, a replacement must be appointed and complete the initial training program within 180 days. This ensures that the replacement is adequately prepared to manage the franchise effectively.
Overall, the Managing Owner role is critical for ensuring compliance with the Franchise Agreement and maintaining effective communication with Bojangles. The Managing Owner's responsibilities highlight the importance of strong leadership and a commitment to the Bojangles system for franchise success.