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A39/100FDD 2025

Popeyes Louisiana Kitchen — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Elevated Risk

10 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
10
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
39 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
71
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$82.1M
Avg loan size
$1.2M
Participating lenders
39

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 39/100 rating

Risk Score Breakdown

  1. 01MINORStagnant unit growth (1.4% YoY) suggests market saturation or franchisee underperformance, raising concerns about expansion viability
  2. 02HIGHMultiple active litigation cases including class actions and antitrust allegations (no-poach violations) indicate systemic governance and compliance issues
  3. 03HIGHParent company RBI litigation involvement suggests corporate-level problems that could cascade to franchisees through policy changes or brand damage
  4. 04HIGHGoing Concern status is FALSE with no Item 19 financial data disclosed, preventing verification of claimed $328,316 average net income
  5. 05MINORHigh investment ceiling ($3.9M) relative to modest net income ($328K) yields 11-12 year payback period at best, concerning for ROI confidence
  6. 06HIGHBreach of development agreement litigation suggests franchisor enforcement inconsistency and potential territorial/growth restriction conflicts

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.