A Canada-based franchisee of Popeyes Louisiana Kitchen has entered receivership following the closure of his restaurants in September 2025 due to debt and allegations of unpaid wages from employees.
Irfan Memon’s companies reportedly owe around $10.8m, as reported by The Economic Times.
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According to the publication, court filings and corporate records reveal that Memon is also a key defendant in a lawsuit initiated in May against Popeyes and its parent company, Restaurant Brands International, along with franchisees in the Toronto area.
Memon’s companies operated seven out of the 27 locations mentioned in the lawsuit, which alleges that the restaurants purchased “unsafe” meat from an unauthorised supplier, ADP Direct Poultry.
These claims have yet to be substantiated in court, and Restaurant Brands has stated that it found no evidence to support them as of July 2025.
The seven restaurants implicated in the lawsuit are among 14 companies that have been placed into receivership, a legal process that facilitates the liquidation of assets to settle debts.
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By GlobalDataFollowing the lawsuit’s filing, Restaurant Brands sought clarification from Memon’s companies regarding their meat sourcing practices.
In a notice of termination sent on 18 September 2025, Popeyes indicated that it had informed Memon’s companies in June about “significant discrepancies” in the quantity of chicken purchased from approved suppliers compared to what was sold.
The franchisee reportedly failed to provide a “sufficient or satisfactory” explanation for these discrepancies.
Emily Ciantra, a spokesperson for Restaurant Brands, stated that the company reviewed records of chicken purchases and sales by franchisees over a six-month period. The termination notice also highlighted food safety concerns at one of Memon’s locations, specifically regarding “the presence of rodent activity” at a restaurant in Toronto.
The notice revealed that Popeyes had been aware of unpaid wages for several months prior to employee protests at Memon’s locations in September.
In January 2025, Popeyes had sent notices of default regarding “repeated failures to pay employees amounts owing when due for a period of more than two months.”
Memon claimed to have resolved the issue, but the recurrence of unpaid wages later contributed to the termination of the franchise agreement.
Meridian Credit Union Ltd., the lender for Memon’s companies, filed for receivership on 8 October, which was granted on 10 October.
Meridian is currently collaborating with both Memon and Restaurant Brands to find new operators for the restaurant locations.
Previously, Memon’s companies had attempted to sell the restaurants and had entered into purchase agreements in May, but those deals fell through for unspecified reasons.
In September, Memon acknowledged defaulting on loans and requested time to sell the restaurants to settle debts by 31 October.
However, following the termination of 13 franchise agreements by Popeyes, landlords began to take steps to terminate leases.
One Popeyes location remains operational under a separate franchisee, specifically Memon’s wife, although Memon is listed as a director of the company operating that location. This restaurant is also among the 14 locations in receivership, and it is anticipated that it will close soon and be sold to a new owner.
The receivership process was deemed necessary to protect asset value after the restaurants ceased operations and were “abandoned.”
Memon’s companies have been reported to have “failed to keep the collateral in good condition and repair,” according to an affidavit from a commercial credit specialist with Meridian.
The termination notice mandated that the franchisee locations cease using the Popeyes trademarks immediately, settle all outstanding payments to Popeyes, return proprietary materials, and “de-identify” the restaurants from the Popeyes brand.
