KFC challenges Popeye's for franchise control

KFC, the nation's leading fried-chicken chain, is challenging Popeye's plan to purchase 14 KFC restaurants in the Twin Cities. After a KFC franchisee went bankrupt, Popeye's intended to spend $13.8 million on 28 restaurants in Minnesota and California...
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KFC, the nation's leading fried-chicken chain, is challenging Popeye's plan to purchase 14 KFC restaurants in the Twin Cities, the Business Journal reports.

After a KFC franchisee went bankrupt, Popeye's intended to spend $13.8 million on 28 restaurants in Minnesota and California.

According to court documents, an affiliate of Oregon-based KFC franchisee has made an offer of $16 million, according to the Star Tribune. But it's unclear how many restaurants that includes.

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Popeyes to take over 14 Twin Cities KFC locations

AFC Enterprises, Popeyes' Atlanta-based parent company, is planning to buy 14 KFC restaurants from a bankrupt franchisee, a major push for the fried chicken chain that has only one lone location on Lake Street in south Minneapolis. The deal is part of a $13.8 million purchase of 28 restaurants in Minnesota and California. The new locations in a handful of metro cities will be quickly converted once the bid is approved by a judge.

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A bankruptcy judge has approved a deal that allows Popeyes Louisiana Kitchen to buy 14 KFC restaurants in the Twin Cities, even though a bid from another KFC franchisee involved more money, the Star Tribune reports. Creditor GE Capital said it preferred the "certainty" of the smaller offer from Popeyes.

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