Popeyes owner sued over misusing brand owes nearly $1 million in sales taxes, Iowa says

The operator of several Popeyes restaurants around Iowa recently ordered to close by the chain’s parent brand is also in arrears on taxes at multiple stores around the state, officials say.

Chicago-based business owner Asif Poonja runs at least seven Iowa locations of the Cajun-themed fried chicken brand, including one in Des Moines at 4140 Merle Hay Road. In September, the chain’s parent company sued Poonja and his company, Jam Equities, alleging the company was continuing to operate five of those stores despite Popeyes revoking their licenses to use the brand due to unspecified violations of «food safety and brand standards.»

Now the Iowa Department of Revenue is adding to the franchisee’s legal woes. Since the beginning of October, the state has filed «distress warrants» alleging failure to pay sales taxes totaling hundreds of thousands of dollars. It has obtained orders to begin garnishing payments and seizing other funds to begin repaying the debts.Court records show the Department of Revenue is seeking unpaid sales and uses taxes dating back to 2022 including:

$261,000 in unpaid taxes, penalties and interest from the Popeyes store in Altoona.

$175,000 from a Popeyes on Blairs Ferry Road in Cedar Rapids.

$340,000 from a Popeyes in Coralville.

$179,000 from a Popeyes in Waterloo.

The Coralville and Waterloo stores are two of the five named in the September lawsuit for allegedly continuing to use the Popeyes brand without permission, alongside the Merle Hay store in Des Moines and stores in Dubuque and on E Avenue Northwest in Cedar Rapids.

Jam Equities and its owner, Poonja, have not filed a response and do not have an attorney listed as representing them in either lawsuit. Poonja could not be reached for comment.William Morris covers courts for the Des Moines Register. He can be contacted at wrmorris2@registermedia.com or 715-573-8166.