How to Sell Your Bojangles’ Famous Chicken ‘n Biscuits Business: A Comprehensive Guide

Are you considering selling your Bojangles’ Famous Chicken ‘n Biscuits business? Whether you own a single franchise or multiple locations, understanding the key factors that influence your business’s value is crucial for a successful sale. In this guide, we’ll walk you through the essential steps and considerations to maximize your return when you sell your Bojangles’ Famous Chicken ‘n Biscuits business.

Understanding the Value of Your Bojangles’ Franchise

The value of a Bojangles’ Famous Chicken ‘n Biscuits business is primarily determined by its adjusted owner benefit, which reflects the true economic profit available to a working owner. Typically, these businesses sell for a multiple of 2-4x their annual adjusted owner benefit, but this can vary based on several factors.

• Calculate EBITDA: Start by determining your Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) from your latest financial statements.
• Add Back Owner Benefits: Include the owner’s salary and any personal expenses that have been run through the business.
• Maintain Accurate Records: Up-to-date and transparent financial records are essential for attracting serious buyers and achieving a premium valuation.

The Owner’s Involvement: Active vs. Passive Management

Your role in the day-to-day operations of your Bojangles’ business significantly impacts its value. If the business relies heavily on your presence, it may be less attractive to buyers seeking a more passive investment.

• Active Owners: If you are the face of the business, consider gradually delegating responsibilities to managers or key staff before listing your business for sale.
• Passive Owners: Businesses with established management teams and systems in place often command higher multiples, as they offer smoother transitions for new owners.
• Replacement Costs: Buyers will factor in the cost of replacing your role, whether through their own efforts or by hiring a manager.

Transferring Your Customer Base

A loyal and recurring customer base is a major asset for any Bojangles’ Famous Chicken ‘n Biscuits business. Ensuring that your customers remain loyal after the sale is key to maximizing your business’s value.

• Minimize Owner Dependency: If customers are attached to you personally, work to shift their loyalty to the brand and your team.
• Retain Key Staff: Motivated and well-compensated employees are more likely to stay after the sale, helping to retain customers and ensure business continuity.
• Document Processes: Well-documented recipes, procedures, and customer service standards make it easier for a new owner to maintain quality and consistency.

Equipment and Physical Assets

The condition and quality of your kitchen equipment, dining area, and other physical assets play a significant role in your business’s valuation. Buyers are willing to pay more for a location that is well-maintained and up-to-date.

• Modern Equipment: Upgraded fryers, ovens, and POS systems reduce the need for immediate capital investment by the buyer.
• Asset Transfer: Equipment is typically sold debt-free and included in the sale price, unless you are conducting an asset-only sale.
• Facility Upkeep: Clean, attractive, and functional facilities enhance the appeal of your business to potential buyers.

Location and Lease Considerations

A prime location is a cornerstone of any successful Bojangles’ Famous Chicken ‘n Biscuits business. The terms of your lease and the desirability of your location can significantly impact your sale price.

• Long-Term Lease: Buyers prefer locations with at least three years remaining on the lease to ensure stability.
• Affordable Rent: Rent should ideally be less than 10% of gross sales to maintain healthy profit margins.
• High-Traffic Areas: Locations near shopping centers, schools, or busy intersections attract more customers and command higher valuations.

Confidentiality During the Sale Process

Maintaining confidentiality is critical when selling your Bojangles’ Famous Chicken ‘n Biscuits business. Premature disclosure can disrupt operations, unsettle staff, and alert competitors.

• Work with a Business Broker: Experienced brokers can screen buyers and ensure only qualified parties learn about your sale.
• Non-Disclosure Agreements: Require all potential buyers to sign NDAs before sharing sensitive information.
• Minimize Disruption: A discreet sales process helps preserve the value and reputation of your business.

Maximize Your Sale Price: Key Takeaways

To sell your Bojangles’ Famous Chicken ‘n Biscuits business for top dollar, focus on building a transferable customer base, maintaining modern equipment, securing a favorable lease, and keeping your financial records in order. By preparing your business in advance and working with experienced professionals, you can achieve a smooth and profitable sale.

Ready to take the next step? Contact a qualified business broker today to discuss how to sell your Bojangles’ Famous Chicken ‘n Biscuits business and unlock its full value.