Beloved fast-food chain closes nearly 80 locations after lawsuit shakes up business
Hardee's closed nearly 80 locations across eight states after a lawsuit against franchisee ARC Burger led to their closure.Summary
Hardee’s, a popular fast-food chain known for its breakfast items, has closed approximately 77 locations across Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina, and Wyoming. The closures are a direct result of a lawsuit filed by CKE Restaurants Holdings, Inc., Hardee’s parent company, against ARC Burger, a major franchisee. The lawsuit alleged that ARC Burger began missing payments – including franchise royalties, fees, rent, taxes, and advertising contributions – as early as December 2024, totaling $6.5 million. ARC Burger responded to the lawsuit by deciding to shutter the affected restaurants.
Hardee’s stated that the closures were due to ARC Burger’s failure to resolve its financial defaults despite “solid sales” and ongoing attempts to find a solution. However, there is a possibility that Hardee’s may re-open some of these locations under its own operation, offering hope to loyal customers in those areas. The situation highlights the complexities of the franchise model and the potential impact of financial disputes on restaurant availability.
(Source：Pennlive)