Popeyes Louisiana Kitchen has been named in a string of lawsuits involving its corporate parent, its franchisees, and its suppliers, ranging from a $36 million Ontario food safety case to wage theft citations, disability discrimination settlements, and consumer class actions over how its chicken is advertised. Most of the significant litigation targets individual franchisees rather than the chain itself, and several of the highest-profile cases remain unresolved.
The $36 Million Ontario Chicken Supply Lawsuit
The largest active case involving Popeyes was filed in spring 2025 in the Ontario Superior Court of Justice by ADP Direct Poultry Ltd., a former raw chicken supplier to the chain. ADP sued Restaurant Brands International (Popeyes’ Toronto-based parent), Restaurant Services Canada Inc., several franchisees, and an individual named Amjad Farooq, whom ADP identified as an unauthorized supplier.1The Globe and Mail. Fowl Play: Inside a Chicken Processor’s Tangled Battle With Popeyes
According to the lawsuit, at least two dozen Popeyes locations in the Greater Toronto Area were buying chicken from Farooq instead of approved suppliers. ADP alleged the meat was stored in a residential garage in Scarborough that lacked proper refrigeration, transported in unrefrigerated trucks, and delivered in open packaging. The chicken, ADP claimed, was sometimes rotten or expired, posed a public health risk, and failed halal certification requirements because of the packaging.1The Globe and Mail. Fowl Play: Inside a Chicken Processor’s Tangled Battle With Popeyes The suit also alleged that Farooq’s operation was never inspected by the Canadian Food Inspection Agency.2CP24. Popeyes Accused of Using Unsafe Chicken Allegedly Stored in Residential Garages in Ontario
ADP is seeking $36 million in damages from Popeyes, RBI, and RSCI, plus $1 million for alleged defamation, and $10.5 million from Farooq separately. The lawsuit also claims that at a May 2024 meeting, RBI executives asked ADP not to report its findings to the Canadian Food Inspection Agency.1The Globe and Mail. Fowl Play: Inside a Chicken Processor’s Tangled Battle With Popeyes
Popeyes has called the claims “unfounded.” Company communications director Emily Ciantra said ADP “is lashing out after losing our business for a variety of legitimate reasons,” and stated that Popeyes maintains “a rigorous and proactive food safety program that regularly includes unannounced restaurant visits, third-party audits and ongoing supply chain monitoring.”2CP24. Popeyes Accused of Using Unsafe Chicken Allegedly Stored in Residential Garages in Ontario Two franchisee companies have filed statements of defence denying the allegations; RBI had not filed one as of mid-2025. ADP filed an amended statement of claim in June 2025. No trial date has been set, and none of the allegations have been tested in court.3The Globe and Mail. Business Brief: Trade, Copper, Tariffs and Fowl Play Allegations
Collapse of a Toronto Franchise Operator
One franchisee named in the ADP suit, Irfan Memon, lost his entire Popeyes business in the months that followed. Memon operated 14 Popeyes locations, seven of which were specifically named in the lawsuit. In September 2025, Popeyes terminated 13 of his franchise agreements, citing discrepancies between chicken purchase records and sales volumes, unpaid employee wages, and food safety issues that included “rodent activity” at a Toronto location.4Yahoo Finance. Popeyes Franchisee Enters Receivership Amid Lawsuit
The restaurants shut down after employee protests over unpaid wages. On October 8, 2025, Meridian Credit Union filed for receivership, and two days later a court placed all 14 of Memon’s companies into receivership to recover approximately $10.8 million in debts. The restaurants were described as abandoned, with perishable items left behind.5The Globe and Mail. Popeyes Ontario Shut Down Amid Unpaid Wages, Lawsuit, Unsafe Chicken Allegations
Iowa Franchisee Settlement
In October 2025, Popeyes sued Iowa franchisee Asif Poonja and his company Jam Equities in federal court in Florida, alleging that Poonja continued to use Popeyes trademarks and confidential materials after the company terminated his franchise rights for food safety and brand standards violations. Jam Equities also faced Iowa Department of Revenue enforcement actions over unpaid sales taxes.6Des Moines Register. Popeyes Iowa Restaurants Settlement
The parties settled quickly. A December 1, 2025 filing led to dismissal two days later. Under the terms, seven affected Iowa locations may remain open under a temporary license until June 30, 2026, during which time Jam Equities must sell them to Popeyes-approved buyers. Poonja is personally on the hook for any shortfall between sale proceeds and what is owed to Popeyes, including attorneys’ fees.6Des Moines Register. Popeyes Iowa Restaurants Settlement
Pinnacle Foods Bankruptcy Ruling
A California franchisee’s attempt to keep its Popeyes restaurants through bankruptcy produced a notable ruling on franchise assumption. Pinnacle Foods of California, which operated six Popeyes locations in Fresno and Turlock, filed for Chapter 11 in 2024 and asked the court to allow it to assume its franchise agreements.7GovInfo. Pinnacle Foods of California Memorandum Ruling
In October 2024, the U.S. Bankruptcy Court for the Eastern District of California denied the motion, applying the “hypothetical test,” under which a franchisor can block assumption of a franchise agreement if the identity of the contracting party is material under non-bankruptcy law. The court cited both the Lanham Act and the California Franchise Relations Act. A motion for reconsideration was denied in December 2024.8PacerMonitor. Pinnacle Foods of California v. Popeyes Louisiana Kitchen, Inc. Most of the commercial leases expired without extension, the bankruptcy court converted the cases to Chapter 7 liquidation, and Pinnacle’s appeal was dismissed in March 2026.7GovInfo. Pinnacle Foods of California Memorandum Ruling
Wage, Child Labor, and Biometric Privacy Claims
Popeyes franchisees have drawn repeated worker-side litigation in the United States.
In February 2024, the U.S. Department of Labor announced that franchisee 14th St. Chicken Corp. had been cited for hiring children as young as 13 and letting minors work hours prohibited by federal child labor law. Investigators also found the operator failed to pay required overtime to 15 employees at locations in Oakland, Tracy, and Newark, California. Penalties and back wages totaled $212,036. It was the third Department of Labor citation against this operator, following earlier violations in 2003 and 2022.9U.S. Department of Labor. WHD News Release 24-172-SAN
In July 2021, a former general manager at a Nashville-area franchise filed Lewis v. Gallatin Chicken LLC in federal court, alleging that the operator denied employees proper overtime, withheld final wages from departing workers, and retaliated against her after she complained about pay practices.10ClassAction.org. Nashville Popeyes Restaurant Hit With Lawsuit Over Alleged Labor Law Violations
Several Illinois cases have accused Popeyes and its franchisees of violating the Illinois Biometric Information Privacy Act by requiring employees to scan fingerprints for timekeeping without proper written consent or data-retention disclosures. In Jones v. Diamond Jubilee Enterprises, Inc., a court in the Northern District of Illinois dismissed the claims against Popeyes in March 2026, finding the plaintiff had not shown that the franchisor controlled or oversaw fingerprint collection at the franchise level. The plaintiff was granted leave to amend.11HR Dive. Popeyes Dodges Illinois Lawsuit Over Fingerprint Scans
Disability Discrimination Cases
The EEOC has brought disability discrimination claims against Popeyes franchisees more than once. In 2013, the agency sued Famous Chicken of Shreveport, LLC, alleging a manager at a Longview, Texas location refused to hire an applicant after he disclosed he was HIV-positive, in violation of the Americans with Disabilities Act. The EEOC noted that HIV is not transmissible through the food supply. The case settled in 2014.12EEOC. Popeyes Chicken Franchisee Sued by EEOC for Disability Discrimination13POZ. Discrimination at Popeyes
In a separate case, the EEOC alleged that HZ Ops Holdings, operating a Popeyes in Gary, Indiana, violated the ADA by refusing to let a new hire with a learning disability train with a job coach and then firing her without ever scheduling her to work. The franchisee agreed to pay $30,000 under a five-year consent decree announced in March 2022.14Bloomberg Law. Indiana Popeyes Owner Settles Disability Discrimination Suit
A broader ADA case, Block v. Dhanani Group of Companies, Inc., was filed in 2019. The proposed class action alleged that a major franchisee operating over 670 Popeyes and Burger King locations had failed to provide wheelchair-accessible parking at its restaurants.15ClassAction.org. Parking Lots at Popeyes, Burger King Restaurants Nationwide Not Wheelchair Accessible, Class Action Claims
Consumer Suits Over Tenders and the Chicken Sandwich Shortage
Two consumer suits against Popeyes attracted attention but did not last. In July 2022, Natasha Sanders filed a proposed class action in the Eastern District of New York (Sanders v. Popeyes Louisiana Kitchen, Inc., Case No. 1:22-cv-04477) alleging that Popeyes falsely advertised its chicken tenders as being made from tenderloin when they were actually chicken breast, causing consumers to pay a premium.16ClassAction.org. Class Action Says Popeyes Chicken Tenders Made From Chicken Breast, Not Tenderloins At a September 2022 pre-motion conference, the judge urged plaintiff’s counsel to review the claims for compliance with Federal Rule of Civil Procedure 11(b). The plaintiff voluntarily dismissed the case without prejudice on September 30, 2022.17CourtListener. Sanders v. Popeyes Louisiana Kitchen, Inc.
Earlier, when Popeyes launched its fried chicken sandwich in August 2019 and quickly ran out, Tennessee resident Craig Barr sued in Hamilton County General Sessions Court alleging false advertising and deceptive business practices. Barr claimed he drove to multiple locations without finding the sandwich, sustained $1,500 in tire and rim damage in the process, and lost $25 to a Craigslist poster who falsely claimed a connection to a Popeyes employee. He sought $5,000 under the Tennessee Consumer Protection Act.18NBC News. Tennessee Man Sues Popeyes for Running Out of Chicken Sandwiches A trial date was set for January 2022, but it is unclear whether the case proceeded or was quietly dropped.19Food Republic. Fast Food Fried Chicken Popeyes Sandwich Lawsuit: What Happened