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Popeyes parent files complaint, arbitration demand against supplier
February 17, 2009
ATLANTA — AFC Enterprises Inc., franchisor and operator of Popeyes restaurants, has filed a Complaint for Declaratory Judgment and a Demand for Arbitration against Diversified Foods & Seasonings Inc., one of the primary suppliers of products to Popeyes restaurants, the company has announced.
In the Declaratory Judgment filing with the court, AFC, on behalf of its franchisees and customers, seeks confirmation of its right to determine any recipe and formula changes made to its core products to meet nutritional mandates, regulatory matters, importation restrictions and economic factors.
The Demand for Arbitration asserts that Diversified has breached its supply agreement with AFC by not providing products to AFC and its franchisees, both domestically and internationally, at fair and reasonable prices.
"After extensive efforts to build a constructive and open vendor relationship with Diversified Food & Seasonings, it has become necessary to ask the court to clarify the matter. While awaiting the decision of the court and the arbitrator, it is business as usual at Popeyes," said Cheryl Bachelder, AFC chief executive officer.
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