Popular chicken chain explores sale after franchisee bankruptcy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Whether fried or grilled, this menu item is becoming the word on everybody’s lips, or in this case, the order inside everybody’s to-go bag.

The item is, of course, chicken, which is having a huge moment in the restaurant industry. Every major fast-food chain is trying to capitalize on its popularity by launching new chicken-based products to dominate the market and boost sales.

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Because chicken is hotter than ever, a popular chain might be trying to take advantage of this momentum by possibly getting a new owner to help it grow its empire.

Established in 1977 in Charlotte, North Carolina, Bojangles is a fast-food chicken chain famous for its Cajun-seasoned fried chicken, biscuits, and “It’s Bo Time!” tagline.

Bojangles explores the sale of its chicken business.

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Bojangles faces the unfortunate Chapter 11 bankruptcy of a franchisee

After over 48 years in business, Bojangles has grown to around 800 restaurants in 17 states. Most are in the Southeast, but it has recently begun to expand across the Northeast and potentially New York and New Jersey.

In 2019, Bojangles sealed a $500 million all-cash deal to be sold to Durational Capital Management LP and The Jordan Company, LP.

Although the chicken chain stopped being a family-owned business in 2007 after its acquisition by the private equity firm Falfurrias Capital Partners, it has been a franchise since 1980.

Entering a franchise model allowed Bojangles to expand its footprint and boost growth. However, allowing other parties to control your business comes at a price.

Because so many different franchise owners manage the brand, franchisees become responsible for daily operations. If quality control is improperly handled, a wrong move can tarnish a company’s reputation.

Former Bojangles franchise owner ABS Network LLC filed for Chapter 11 bankruptcy in New Jersey in November 2023, after facing financial difficulties and accusations of wage theft and fraudulent W-2s.

At the time, the franchisee operated five Bojangles restaurants in Maryland, which were all forced to shut down, terminating its relationship with the chicken chain.

Bojangles might be seeking a new owner while at peak demand

Recently, The Wall Street Journal reported that Bojangles is trying to sell the business for over $1.5 billion, around three times more than its first sale amount in 2019.

No specific suitors have been identified yet, but the chicken chain is looking for restaurant operators and private equity investors.

Bojangles has yet to issue any official statements regarding the sale of its business.

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However, Bojangles wouldn’t be the only chain trying to bank off this chicken craze.

This month, Roark Capital sealed a $1 billion deal with Dave’s Hot Chicken to acquire a majority stake in the chicken chain. This acquisition would allow it to expand its footprint into more nontraditional settings and international markets.