Popular fast food chain to close more than 75 locations after lawsuit
Hardee’s will close 77 locations across eight states following a lawsuit against its franchisee, ARC Burger, due to missed payments.Summary
Hardee’s is set to close 77 of its restaurants in Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina, and Wyoming after a lawsuit against ARC Burger, one of its largest franchisees. The lawsuit, filed by Hardee’s, alleges that ARC Burger breached its franchise agreements by failing to make required payments since December 2024. According to Hardee’s, despite “solid sales,” ARC Burger failed to address its financial defaults despite months of attempts to reach a resolution. Hardee’s stated, “These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements.” Court documents reveal Hardee’s concerns that ARC Burger’s profits were not being used to cover outstanding fees. The closures are a direct consequence of ARC Burger’s inability to meet its financial obligations to the parent company.
(Source：Masslive)