1 min read- A major Carl’s Jr. franchisee has filed for bankruptcy, putting 65 locations at risk of closing.
- Carl’s Jr. says the situation is isolated to that franchisee and will not affect the rest of the chain.
- All 65 locations involved in the filing are in California.
Despite its pull when it comes to marketing—who can forget the iconic Paris Hilton commercial, or more recently, the Alix Earle promo spot—one of Carl’s Jr.’s biggest franchisees has filed for bankruptcy.
Friendly Franchisees Corporation, the operator of 65 Carl’s Jr. locations, recently filed for Chapter 11 bankruptcy protection, putting those restaurants at serious risk of closing. The filing follows a pattern we’ve been seeing across the fast-food industry, where several major franchise operators have succumbed to similar financial strain. Popeyes recently saw its largest franchisee declare bankruptcy and subsequently close 20 locations.
Still, Carl’s Jr. doesn’t expect this setback to affect the brand in the long run. “This situation is specific to this individual franchisee’s financial and business circumstances,” a spokesperson explained to Restaurant Dive. “This has no impact on the operations of any other Carl’s Jr. locations, and we remain committed to delivering quality experiences for our guests, while driving profitable, sustainable growth for our franchisees and brand.”
The locations operated by Friendly Franchisees Corporation are all in California, where it is the company’s largest franchisee. So while this could affect Carl’s Jr. lovers out West, the bankruptcy is unlikely to have much impact on customers elsewhere.
Carl’s Jr. currently has more than 1,000 locations across the United States, including more than 500 in California alone. 65 potential closures is no small number, but I think burger lovers will continue to be well fed despite the bankruptcy filing.