ATLANTA, Feb. 17 /PRNewswire-FirstCall/ -- AFC Enterprises, Inc. (Nasdaq: AFCE), the franchisor and operator of Popeyes(R) restaurants, today filed a Complaint for Declaratory Judgment and a Demand for Arbitration against Diversified Foods & Seasonings, Inc., one of the primary suppliers of products to Popeyes restaurants.

In the Declaratory Judgment filing with the court, AFC, on behalf of its franchisees and customers, seeks confirmation of its right to determine any recipe and formula changes made to its core products to meet nutritional mandates, regulatory matters, importation restrictions and economic factors. The Demand for Arbitration asserts that Diversified has breached its supply agreement with AFC by not providing products to AFC and its franchisees, both domestically and internationally, at fair and reasonable prices.

'AFC is proud of the exceptional food that we serve at Popeyes and the distinctive recipes developed by our founder, Al Copeland,' said Cheryl Bachelder, AFC chief executive officer. 'We remain committed to offering our customers superior food from our Louisiana kitchens. But as we look to the future, we simply ask the court to help us establish a transparent and flexible relationship with Diversified so that we can appropriately respond to a changing marketplace and continue to protect the long-term interests of our franchise system and customers. After extensive efforts to build a constructive and open vendor relationship with Diversified Food & Seasonings, it has become necessary to ask the court to clarify the matter. While awaiting the decision of the court and the arbitrator, it is business as usual at Popeyes,' Bachelder said.

Corporate Profile

AFC Enterprises, Inc. is the franchisor and operator of Popeyes(R) restaurants, the world's second-largest quick-service chicken concept based on number of units. As of October 5, 2008, Popeyes had 1,905 restaurants in the United States, Puerto Rico, Guam and 25 foreign countries. AFC's primary objective is to offer excellent investment opportunities in its Popeyes brand and provide exceptional franchisee support systems and services to its owners. AFC Enterprises can be found at www.afce.com.

    AFC Contact Information
    Investor inquiries:
    Cheryl Fletcher, Director, Finance & Investor Relations
    (404) 459-4487 or investor.relations@afce.com
    Media inquiries:
    Alicia Thompson, Vice President, Popeyes Communications & Public Relations
    (404) 459-4572 or popeyescommunications@popeyes.com

SOURCE AFC Enterprises, Inc.