Popeyes Sues Former Iowa Franchisee for Operating ‘Unauthorized’ Restaurants

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  • Coralville: Failed multiple inspections and received an August 29, 2025 termination notice after prior warnings in May and June 2025
  • Merle Hay (Des Moines): Terminated August 29, 2025, after years of non-compliance dating back to October 2024
  • Dubuque: Received default notices in March, April, and June 2025, then failed inspection on August 1, 2025
  • Waterloo: Found in repeated violation as of June and August 2025
  • Cedar Rapids (E Ave.): Default notices as early as October 2024, termination issued August 29, 2025

Despite these terminations, the complaint alleges defendants “continue to hold themselves out to the public as owning and operating genuine and authorized POPEYES® Restaurants by continuing to display and/or use the Marks”

Popeyes also accuses the defendants of failing to return proprietary Operating Standards Manuals (OPS Manuals), confidential documents that govern everything from food preparation to health and sanitation standards

Legal Claims

Popeyes asserts Lanham Act violations (Sections 32 and 43(a)), common law trademark infringementunfair competition, and breach of contract across all five franchise agreements

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The company further points to personal guaranties signed by Poonja, making him personally liable for each franchise’s obligations