{"id":2919,"date":"2026-04-23T22:34:14","date_gmt":"2026-04-23T21:34:14","guid":{"rendered":"https:\/\/cupcake.website\/?p=2919"},"modified":"2026-04-23T22:34:14","modified_gmt":"2026-04-23T21:34:14","slug":"77-hardees-locations-are-shutting-down-following-dramatic-legal-battle-bankruptcy","status":"publish","type":"post","link":"https:\/\/cupcake.website\/?p=2919","title":{"rendered":"77 Hardee\u2019s Locations Are Shutting Down Following Dramatic Legal Battle &#038; Bankruptcy"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div data-journey-body=\"standard-article\">\n<div class=\"css-hl6xtf e1wzc3k51\"><img src=\"https:\/\/www.delish.com\/_assets\/design-tokens\/fre\/static\/icons\/clock-regular.4ddebeb.svg\" alt=\"Estimated read time\" width=\"16\" height=\"16\" decoding=\"async\" loading=\"lazy\"\/><span class=\"css-1rzbsk9 e1wzc3k50\">2 min read<\/span><\/div>\n<div class=\"css-1jx1kps etlajd3\">\n<div data-theme-key=\"collapsible-section\" class=\"css-p1fz9n e1q3dcg6\">\n<h3 data-theme-key=\"collapsible-header\" class=\"css-1fv4nwp e1q3dcg5\"><button aria-label=\"Hide Key Points section\" aria-expanded=\"true\" data-theme-key=\"collapsible-header-button\" class=\"css-ec8vqf e1q3dcg4\"><\/p>\n<div data-theme-key=\"collapsible-icon-wrapper\" data-collapsible-open=\"true\" class=\"css-lhm19 e1q3dcg0\"><span data-testid=\"iconRight\" data-theme-key=\"collapsible-icon-right\" class=\"css-1ep4808 e1q3dcg1\"><img src=\"https:\/\/www.delish.com\/_assets\/design-tokens\/fre\/static\/icons\/caret-right-regular.a6ec664.svg\" alt=\"Caret Right\" width=\"100%\" height=\"auto\" decoding=\"async\" loading=\"lazy\"\/><\/span><\/div>\n<p><\/button><\/h3>\n<div aria-hidden=\"false\" data-theme-key=\"collapsible-section-text\" class=\"css-nzvxqj e1q3dcg3\">\n<div class=\"css-ex91la etlajd2\">\n<div>\n<ul>\n<li aria-level=\"1\" style=\"list-style-type: disc\">ARC Burger, a major Hardee\u2019s franchisee, filed for Chapter 7 bankruptcy and is liquidating its assets.<\/li>\n<li aria-level=\"1\" style=\"list-style-type: disc\">The filing follows a legal dispute over millions in unpaid franchise fees.<\/li>\n<li aria-level=\"1\" style=\"list-style-type: disc\">The news follows a recent bankruptcy by a Carl\u2019s Jr. franchisee that led to dozens of closures.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p data-journey-content=\"true\" data-node-id=\"0\" class=\"css-6wxqfj emevuu60\">A major Hardee\u2019s franchisee is shutting down operations after filing for Chapter 7 bankruptcy, bringing an ongoing legal dispute with the chain to a turning point.<\/p>\n<p data-journey-content=\"true\" data-node-id=\"1\" class=\"css-6wxqfj emevuu60\">ARC Burger, LLC, one of the brand\u2019s larger operators, filed for liquidation on April 20. Legal documents reveal that the franchisee owes over <a rel=\"noopener\" href=\"https:\/\/www.restaurantbusinessonline.com\/financing\/large-hardees-franchisee-declares-chapter-7-bankruptcy\" target=\"_blank\" data-vars-ga-outbound-link=\"https:\/\/www.restaurantbusinessonline.com\/financing\/large-hardees-franchisee-declares-chapter-7-bankruptcy\" data-vars-ga-ux-element=\"Hyperlink\" data-vars-ga-call-to-action=\"$29 million\" data-node-id=\"1.1\" class=\"body-link css-8bav6j emevuu60\">$29 million<\/a> to multiple creditors. And, unlike a restructuring, <a rel=\"noopener\" href=\"https:\/\/www.uscourts.gov\/court-programs\/bankruptcy\/bankruptcy-basics\/chapter-7-bankruptcy-basics\" target=\"_blank\" data-vars-ga-outbound-link=\"https:\/\/www.uscourts.gov\/court-programs\/bankruptcy\/bankruptcy-basics\/chapter-7-bankruptcy-basics\" data-vars-ga-ux-element=\"Hyperlink\" data-vars-ga-call-to-action=\"Chapter 7\" data-node-id=\"1.3\" class=\"body-link css-8bav6j emevuu60\">Chapter 7<\/a> bankruptcy means the company plans to sell off its assets and close out its business rather than attempt a comeback.<\/p>\n<p data-journey-content=\"true\" data-node-id=\"2\" class=\"css-6wxqfj emevuu60\">The filing follows a months-long legal battle between the franchisee and Hardee\u2019s corporate. <a rel=\"noopener\" href=\"https:\/\/www.qsrmagazine.com\/story\/hardees-launches-legal-battle-with-77-unit-franchisee-as-financial-dispute-escalates\/\" target=\"_blank\" data-vars-ga-outbound-link=\"https:\/\/www.qsrmagazine.com\/story\/hardees-launches-legal-battle-with-77-unit-franchisee-as-financial-dispute-escalates\/\" data-vars-ga-ux-element=\"Hyperlink\" data-vars-ga-call-to-action=\"Last September,\" data-node-id=\"2.1\" class=\"body-link css-8bav6j emevuu60\">Last September,<\/a> the chain terminated its franchise agreement with ARC after it accrued more than $6.5 million in debt from unpaid fees, including royalties.<\/p>\n<section data-embed=\"watch-next\" data-lazy-id=\"P0-22\" data-node-id=\"3\" class=\"embed\"\/>\n<section data-embed=\"editorial-link\" data-lazy-id=\"P0-23\" data-node-id=\"4\" class=\"embed\">\n<aside class=\"css-1fm2v8u e94w1mj13\">\n<h2 class=\"css-1xumt3f e94w1mj11\"><span aria-hidden=\"true\" data-theme-key=\"title-design-element-before\" class=\"css-0 e68yk9k0\"\/><span class=\"css-0 e94w1mj10\">Related Story<\/span><span aria-hidden=\"true\" data-theme-key=\"title-design-element-after\" class=\"css-0 e68yk9k1\"\/><\/h2>\n<\/aside>\n<\/section>\n<p data-journey-content=\"true\" data-node-id=\"5\" class=\"css-6wxqfj emevuu60\">ARC\u2019s locations were allowed to remain open temporarily while the brand sought a new buyer, provided the franchisee kept up with payments. According to the Hardee\u2019s legal team, ARC rebuffed the chain\u2019s efforts to negotiate a payment plan. Instead, it offered periodic partial payments that did little to offset the growing debt.<\/p>\n<p data-journey-content=\"true\" data-node-id=\"6\" class=\"css-6wxqfj emevuu60\">Tensions came to a head in November of last year, when Hardee\u2019s filed a lawsuit against ARC for breach of contract. The filing claimed that ARC was not upholding its end of the bargain even though the locations appeared to be turning a profit. \u201cWherever ARC&#8217;s profits are going, they are not being applied to past-due or ongoing fees,\u201d the chain alleged.<\/p>\n<p data-journey-content=\"true\" data-node-id=\"7\" class=\"css-6wxqfj emevuu60\">And with this bankruptcy filing, it appears that ARC has thrown in the towel. The franchisee owned and operated 77 locations across nine states. While many of these restaurants will be shuttering permanently, Hardee\u2019s corporate is hoping to rescue at least half of them.<\/p>\n<section data-embed=\"editorial-link\" data-lazy-id=\"P0-24\" data-node-id=\"8\" class=\"embed\">\n<aside class=\"css-1fm2v8u e94w1mj13\">\n<h2 class=\"css-1xumt3f e94w1mj11\"><span aria-hidden=\"true\" data-theme-key=\"title-design-element-before\" class=\"css-0 e68yk9k0\"\/><span class=\"css-0 e94w1mj10\">Related Story<\/span><span aria-hidden=\"true\" data-theme-key=\"title-design-element-after\" class=\"css-0 e68yk9k1\"\/><\/h2>\n<\/aside>\n<\/section>\n<p data-journey-content=\"true\" data-node-id=\"9\" class=\"css-6wxqfj emevuu60\">A spokesperson told <a rel=\"noopener\" href=\"https:\/\/people.com\/popular-fast-food-chain-franchisee-files-for-chapter-7-bankruptcy-amid-legal-battle-with-chain-11955450\" target=\"_blank\" data-vars-ga-outbound-link=\"https:\/\/people.com\/popular-fast-food-chain-franchisee-files-for-chapter-7-bankruptcy-amid-legal-battle-with-chain-11955450\" data-vars-ga-ux-element=\"Hyperlink\" data-vars-ga-call-to-action=\"PEOPLE\" data-node-id=\"9.1\" class=\"body-link css-8bav6j emevuu60\"><em data-node-id=\"9.1.0\">PEOPLE<\/em><\/a> that the chain plans to \u201cassume ownership and resume operations for more than 40 recently closed locations that were previously independently owned and operated by ARC Burger.\u201d So far, it has already reopened nearly two dozen in Georgia, South Carolina, and Mississippi.<\/p>\n<p data-journey-content=\"true\" data-node-id=\"10\" class=\"css-6wxqfj emevuu60\">This is not the first time that the company has dealt with financial turmoil with its franchisees. Earlier this month, a California-based operator of Carl\u2019s Jr.\u2014the West Coast burger chain belonging to the same parent company\u2014filed for bankruptcy and put 65 locations at risk of closure.<\/p>\n<p data-journey-content=\"true\" data-node-id=\"11\" class=\"css-6wxqfj emevuu60\">Rising costs, ongoing fee obligations, and disputes with corporate partners can create a difficult balance for operators managing dozens of locations. When that balance tips, the impact is immediate. In ARC Burger\u2019s case, unfortunately, that tipping point has already passed.<\/p>\n<section data-embed=\"editorial-link\" data-lazy-id=\"P0-25\" data-node-id=\"12\" class=\"embed\">\n<aside class=\"css-u95ltk e94w1mj3\"\/><\/section>\n<\/div>\n<p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>2 min read ARC Burger, a major Hardee\u2019s franchisee, filed for Chapter 7 bankruptcy and is liquidating its assets. The filing follows a legal dispute over millions in unpaid franchise fees. The news follows a recent bankruptcy by a Carl\u2019s Jr. franchisee that led to dozens of closures. A major [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2920,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-2919","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-food-news"],"_links":{"self":[{"href":"https:\/\/cupcake.website\/index.php?rest_route=\/wp\/v2\/posts\/2919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cupcake.website\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cupcake.website\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cupcake.website\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cupcake.website\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2919"}],"version-history":[{"count":0,"href":"https:\/\/cupcake.website\/index.php?rest_route=\/wp\/v2\/posts\/2919\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cupcake.website\/index.php?rest_route=\/wp\/v2\/media\/2920"}],"wp:attachment":[{"href":"https:\/\/cupcake.website\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cupcake.website\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cupcake.website\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}