A Franchisor’s Best Defence Is a Strong Offence – Even on TikTok

In a recent Ontario lawsuit, ADP Direct Poultry Ltd. (“ADP”) made jaw-dropping allegations against popular fast-food chain Popeyes Louisiana Kitchen Inc. (“Popeyes”) regarding “unsafe and unlawful raw chicken.”

The lawsuit by ADP, a former supplier of Popeyes, claims that certain Popeyes Ontario franchisees allegedly bought chicken from an unapproved third-party vendor, Amhad Farooq Incorporated (“Farooq”), which was said to be operating out of household garages with no proper temperature control. The claims allege the chicken was then sold to consumers across Ontario.

ADP says that its long-term contract was cut short by Popeyes after it raised food safety concerns about Farooq to Popeyes’ head office. In its lawsuit, ADP seeks more than $35 million in damages for various claims against Popeyes and its parent company, Restaurant Brands International (RBI), as well as supply chain manager Restaurant Services Canada Inc. and a group of Popeyes franchisees that purportedly purchased the “rotten or expired” chicken from Farooq.

Popeyes has firmly denied the allegations, stating that an internal investigation found them to be without merit. The company attributed the claims to a disgruntled former vendor that was recently removed from its supply chain.

TikTok Nightmare for Popeyes

Whether these allegations can be proven by ADP is not Popeyes’ primary concern. The more pressing issue is the immediate reputational damage to the brand and the potential loss of consumer confidence, which can be much more difficult to repair in the short term.

A TikTok video warning about the lawsuit has gone viral, netting more than 1.4-million views, with consumer comments indicating eroding confidence in the brand. On platforms like X, YouTube and beyond, consumers are seizing the moment to express patriotic sentiment, urging others to support local brands. As one TikTok user put it: “And that’s why I tell every Canadian to get Mary Brown’s just got that instead of Popeyes yesterday.”

Critical Lessons for Franchisors

Despite Popeyes’ denial, public perception remains fragile. For franchisors, protecting brand goodwill and consumer trust is paramount. Key takeaways from this incident include:

• Immediate Crisis Communication: A legal team should work together with PR advisors and their own influencers before the story gains traction and social media momentum starts to snowball. Popeyes could have better positioned itself by responding promptly, helping to shape public perception early and mount a stronger defence.
• Legal Preparedness Is Brand Protection: Proactively building a strong litigation team for both franchisors and franchisees can help prevent disputes from escalating publicly, mitigate brand risk and protect confidentiality.
• Prioritizing Trust and Transparency: Collaborating with franchisees to swiftly investigate issues can help limit exposure and demonstrate solidarity within a franchised network.

Litigation may take years to resolve, but reputational damage can linger much longer. Brands that survive scandals aren’t just lucky – they are ready.

The Franchising Group at Aird & Berlis LLP advises franchisors on regulatory compliance, supplier governance and crisis response planning. For further guidance on mitigating legal and reputational risk, please contact the authors or a member of the group.