Another fast food franchisee files for Chapter 11 bankruptcy. Will any of its restaurants close?

A major fast food franchisee has filed for Chapter 11 bankruptcy protection. The franchisee, Sailormen Inc., operates 130 Popeyes Louisiana Kitchen locations in Florida, and like the franchisees of other big-name fast food chains in recent years, has faced numerous economic headwinds. Here’s what you need to know.

What’s happened?

On January 15, Popeyes Louisiana Kitchen franchisee Sailormen Inc. filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Florida.

Sailormen has been a Popeyes franchisee since the 1980s, and it currently operates 130 locations of the popular fried chicken chain.

The conditions leading to the company’s bankruptcy filing centered on increased debt burdens, driven by several factors.

“Those factors include, among others, the national impact of the COVID-19 pandemic on restaurant operations, consumer choice, high inflation, increased borrowing rates, and an increasingly limited qualified labor force,” the company said in its filing.

As reported by Restaurant Business, in 2023, Sailormen parent company, Interfoods of America, had a deal to sell 16 Sailormen-owned locations to another company, but that deal fell through, leaving Sailormen liable for the lease payments on those stores, significantly contributing to the company’s financial woes. 

According to court documents, Sailormen Inc. owes around $130 million to various lenders, some of whom are suing the company. 

How does this bankruptcy affect Popeyes Louisiana Kitchen?

It’s important to note that the bankruptcy does not involve Popeyes Louisiana Kitchen or its owner, Restaurant Brands International (RBI). Sailormen Inc. is a separate legal entity from RBI and only franchises Popeyes stores.

However, the bankruptcy filing of a large franchisee is sure to worry other franchise owners about the health of the Popeyes brand.

To address those concerns, the president of Popeyes in the U.S. and Canada, Peter Perdue, reportedly sent out a note to relevant parties addressing the bankruptcy.

According to the note, which was obtained by Restaurant Business, Perdue told other franchisees that Sailormen’s bankruptcy announcement “does not reflect the healthy unit economics that you are experiencing in your restaurants.”

Of the four major fast food brands owned by RBI—Burger King, Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs— Popeyes ranks third in number of locations.

Burger King is by far the largest RBI chain, with nearly 20,000 locations, followed by Tim Hortons with around 6,000 locations. Popeyes has around 5,000 locations worldwide, and Firehouse Subs has fewer than 1,500.

In its most recent quarterly report, for the third quarter 2025, RBI reported net sales of $2.45 billion, an increase of 6.9%.

However, much of that gain came from sales increases at its Tim Hortons and Burger King stores, noted CNBC. During the quarter, Popeyes saw same-store sales decline 2.4%.

Fast Company reached out to Sailormen and RBI for comment.

Will Popeyes store close?

In Sailormen’s bankruptcy filings, it made no mention of the possibility of store closures, though no closures are by any means certain.

In the memo sent to franchise owners regarding Sailormen’s bankruptcy filing, Popeyes president Peter Perdue reportedly addressed possible closures.

“While no one wants to find themselves in a process like this, we certainly believe that a large majority of their restaurants will continue to operate in the Popeyes system,” he wrote.

Sailormen is by far the first major quick service restaurant (QSR) franchisee to seek Chapter 11 protection.

In recent years, a number of major fast food franchise owners have filed for bankruptcy. This includes the November 2023 bankruptcy filings for Wendy’s franchisee Starboard Group and Burger King franchisee Premier Kings.

And last April, another major Burger King franchisee, Consolidated Burger Holdings, also filed for Chapter 11.

Many of these franchisees have reported the same struggles as Sailormen’s, including foot traffic that never recovered after the Covid-19 pandemic as well as inflationary pressures.