Hardee's closes 77 restaurants amid franchisee bankruptcy and lawsuits

Hardee’s workers across nine states lost their schedules when ARC Burger shut all 77 of its restaurants, wiping out jobs for more than 1,600 employees in places from Georgia and Missouri to Alabama, Florida, Illinois, Montana, South Carolina and Wyoming, plus one other state in the franchisee’s footprint. For cooks, cashiers, shift leads and store managers, the closures meant more than a corporate reset. They meant empty stores, missing paychecks and, in many communities, the loss of one of the few major entry-level employers.

ARC Burger, a Hardee’s franchisee formed in 2023 by High Bluff Capital Partners, filed for Chapter 7 liquidation in April 2026 after the shutdowns had already closed every one of its restaurants by mid-December 2025. The filing showed liabilities of between $10 million and $50 million. Hardee’s had sued ARC Burger in November 2025 over about $6.5 million in alleged unpaid royalties, rent, advertising, technology, training and other fees, then later said it was owed more than $10.5 million in damages tied to the early termination of the franchise agreement.

ARC Burger pushed back in March 2026, saying it had inherited a deteriorating portfolio with broken equipment and expensive repair needs, and claiming it spent more than $10 million on unplanned fixes. Hardee’s rejected that explanation and said the core problem was ARC’s failure to make required payments. The dispute turned what might have been a messy franchise breakup into a direct labor shock, because every store closure instantly erased hours in kitchens, dining rooms and drive-thrus where workers already operate on thin margins and unpredictable schedules.

CKE Restaurants Holdings, Hardee’s parent company, said it had already reopened 15 locations in Georgia, Missouri and South Carolina as corporate-owned restaurants and expected to assume ownership and resume operations at more than 40 recently closed ARC Burger locations. That could restore some payrolls, but it also showed how uneven the recovery would be: reopening one store does not repair the income lost by workers at the others, or the local routines built around them.

Hardee’s said it understood the role those restaurants play in local neighborhoods. In practical terms, that role often starts with a first job, a second job or a late-night shift that helps pay rent. When 77 locations went dark at once, that ladder disappeared for workers who had counted on it.