Fast food burger chain franchisee files for Chapter 7 bankruptcy liquidation

Fast food Hardee’s burger chain ARC Burger LLC has filed for Chapter 7 bankruptcy liquidation. According to Atlanta’s Business Journal, they are facing a breach-of-contract lawsuit filed by the operator's franchisor, and are reportedly over $29 million in debt

In December last year, USA Today reported that “In an emailed statement to USA TODAY, Hardee’s Restaurants confirmed the closure of all the franchised restaurants.

Hardee’s told USA Today that “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

In March 2025 CKE Restaurants appointed Joe Guith as Chief Executive Officer. The company released a statement which read: “CKE Restaurants Holdings, Inc. ("CKE"), parent company of Carl's Jr.® and Hardee's®, today announced the appointment of Joe Guith as chief executive officer, effective immediately.

“Mr. Guith arrives at CKE with extensive experience in franchising, restaurant management, and the expansion of consumer brands. Previously, he served as CEO of Church's Texas Chicken, he successfully repositioned the brand and built stronger relationships with the franchisee community, leading to significant improvements in unit-level profitability, record sales, and traffic growth.”

At the time of his appointment, Joe Guith said: “I am honored to join such a respected and iconic company. Carl's Jr. and Hardee's have a rich history of delivering craveable flavors and exceptional service, and I am eager to work with the talented team and franchisees to build on this legacy."

Known for their charbroiled burgers and “made from scratch” biscuits, Hardee's was founded by Wilbur Hardee in 1960 in Greenville, North Carolina and grew from a single hamburger stand into a fast-food chain and was particularly known in the South and Midwest.

In November last year, Wendy’s Interim Chief Executive Ken Cook told analysts during a quarterly earnings call that a“mid single-digit percentage” of their U.S. restaurants could close and said: “These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants.”

According to his bio on Wendy’s website, “Ken Cook has served as Interim Chief Executive Officer for The Wendy’s Company since July 2025. He has also served as Chief Financial Officer since December 2024, where he played a major role in developing Wendy’s long-term growth strategy. Ken is energized by the passion that our people, franchisees, and customers have for the Wendy’s brand, and his focus is on delivering on our growth strategy for the benefit of all Wendy’s stakeholders.”