Five Iowa restaurants have continued to run under the brand’s name despite terminated franchise agreements

Popeyes is suing former franchisee JAM Equities for trademark violation. According to court documents, five restaurants in Iowa have continued using Popeyes’ trademarks and branding despite the termination of their franchise agreements last month.

The company also alleges the former franchisee has failed to return confidential materials, as required by their contracts.

The restaurants are operated by JAM Equities, which joined the Popeyes system in 2005 and added four more locations by the late 2010s. In October 2024, the parent company began sending warnings to its five Iowa stores for alleged violations of “food safety and brand standards.”

By early August, all five stores — in Des Moines, Waterloo, Coralville, Dubuque, and Cedar Rapids — failed follow-up inspections, and their agreements were formally terminated by the end of August.

The lawsuit is seeking to stop JAM Equities and its owner, Asif Poonja, from using the Popeyes brand and operating any restaurants within a 10-mile radius of the current locations for two years. The company is also seeking compensatory damages, lost profit, and attorneys’ fees stemming from their agreement breach. Finally, the company is seeking the return of all branded materials, such as signs and packaging, as well as all copies of the operating manuals and other materials used in connection to the restaurants’ operations.

Popeyes claims these breaches have “directly and proximately caused loss and damage” to the company.

Nation’s Restaurant News reached out to Popeyes for further comment on this case.

Contact Alicia Kelso at Alicia.Kelso@informa.com

Source https://www.nrn.com/quick-service/popeyes-sues-former-franchisee-for-trademark-violations

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