One of Popeyes’ Largest Franchisees Sells 97 Restaurants out of Bankruptcy

A federal bankruptcy judge approved the sale of nearly 100 Popeyes restaurants formerly operated by franchisee Sailormen Inc., marking one of the industry’s largest franchise restructurings this year.

The court checked off a series of transactions that will transfer 97 restaurants across Florida and Georgia to five different buyers as Sailormen works through its Chapter 11 bankruptcy. The sales cover restaurants in Miami, Orlando, Jacksonville, Tallahassee, Pensacola, Tampa, West Palm Beach, and Savannah.

The largest transaction sends 50 restaurants in the Tampa, Jacksonville, Tallahassee, and Pensacola markets to Pulse Restaurant Group for approximately $2.69 million. As franchisor, Popeyes will acquire 16 Miami-area restaurants for $9.6 million, while RFI Ventures will purchase 23 Orlando-area locations for $2.5 million. The court also approved the sale of three West Palm Beach restaurants to 61 Biscuits for roughly $1.12 million and five Savannah restaurants to SBH Foods for $650,000.

In total, the approved transactions represent more than $16.5 million.

Bankruptcy and restructuring

The sales move forward a restructuring process that began in January when Miami-based Sailormen, one of Popeyes’ largest franchisees, filed for bankruptcy. Founded in 1984, the company grew from 11 Miami-area restaurants after being acquired by Bob Berg and Steve Wemple in 1987, expanding through a series of acquisitions that at one point stretched across seven states. Between 2012 and 2018, Sailormen sold off markets outside of Florida and Georgia to concentrate on those two states, where it ultimately operated 136 Popeyes restaurants.

At the time of its filing, Sailormen employed more than 3,300 people and generated approximately $233.5 million in fiscal 2025 sales. Despite its size, the company posted a net operating loss of nearly $18.8 million during the year. Court filings showed Sailormen had roughly $232.5 million in assets against $342.6 million in liabilities.

Sailormen attributed its financial troubles to a combination of persistent inflation, higher borrowing costs, labor shortages, and the lingering effects of the pandemic on restaurant operations and consumer spending. The company said it had previously attempted to stabilize the business by selling 16 restaurants, but the buyer later closed those locations, leaving Sailormen responsible for the lease guarantees. As financial performance continued to deteriorate, the franchisee fell behind on rent payments and faced mounting pressure from landlords, vendors, and lender BMO Bank, which filed suit seeking the appointment of a federal receiver.

Restructuring process

Sailormen said it turned to Chapter 11 to preserve the business as a going concern and conduct an orderly sale process that would maximize value for creditors.

Popeyes played an active role throughout the restructuring. Court filings show the franchisor worked alongside the debtor and prospective buyers during the marketing process while also submitting its own bid for the Miami market.