A reported 77 Hardee’s locations will reportedly be closed in the next two weeks after one of its largest franchisees has failed to make payments over the last year.
The fast-food chain is suing ARC Burger, owned by High Bluff Capital Partners, because of missed payments and contract obligations, according to USA Today. ARC Burger is set to close all of its Hardee’s locations.
Since it first opened its doors 65 years ago, Hardee’s has been known for its Thickburgers and breakfast biscuits. While it operates more than 1,800 U.S. restaurants, each location earns less than $1.2 million a year on average. To put that into perspective, Wendy’s restaurants earn roughly $2 million, and McDonald’s locations rake in $3.9 million.
Behind on Bills
According to Law.com, ARC owes more than $6.5 million in obligations including royalties, advertising fund contributions, technology and training fees, rent, and taxes. The franchisee has allegedly failed to make payments since December 2024.
“Wherever ARC’s profits are going, they are not being applied to past-due or ongoing fees,” said the company in the lawsuit.
A reported 28 locations have already shut down, according to The Street. ARC has not filed for bankruptcy protection.
“These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales and our continued attempts over the course of many months to reach a resolution that would keep these restaurants open,” said a spokesperson for Hardee’s. “We understand the impact of closures on restaurant employees and local communities, and we are working hard to find a path forward to reopen closed locations. We remain focused on ensuring long-term stability and growth for the Hardee’s brand.”
Ava Levinson
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