Are there any restrictions on who can be a Designated Manager for a Bor Restoration franchise?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
Your Principal Operator, Designated Manager and you must complete our training, and at least one trained person must operate the Business from day to day. Though the Franchise Agreement does not require it, it is always recommended that your Principal Operator or you operate the Business from day to day, though your Designated Manager may take on this responsibility. If you have one, your Designated Manager must abide by all confidentiality requirements of the franchise agreement and may be required to sign our then-current confidentiality and non-competition agreement. Your Designated Manager is not required to own any interest in the Business. The Principal Operator must own no less than 10% of the equity in the franchisee business entity.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 32–33)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the Designated Manager is not required to own any interest in the business. However, the Designated Manager must complete the Bor Restoration training program. It is recommended that either the Principal Operator or the franchisee operate the business daily, but the Designated Manager can also fulfill this role.
Furthermore, the Designated Manager must adhere to the confidentiality requirements outlined in the franchise agreement. They may also be required to sign Bor Restoration's current confidentiality and non-competition agreement.
In summary, while there are no ownership restrictions for the Designated Manager, they must complete the required training, comply with confidentiality requirements, and may need to sign a non-competition agreement. This allows for flexibility in management structure while ensuring that key personnel are properly trained and bound by necessary agreements.