Harshad Dharod Targets 59 Carl's Jr Locations in California
Harshad Dharod's Friendly Franchisees Corporation plans to close 10 carl's jr restaurants and sell 49 others in California after filing for Chapter 11 bankruptcy protection in April. The move puts 59 locations in play at what the company has called the largest California-based Carl's Jr. franchisee.
Bankruptcy filings reportedly show the restaurants generated more than $6 million in monthly revenue in 2026 while losing more than $600,000 per month. That gap left the operator trying to reset a California footprint built on at least 65 Carl's Jr. locations acquired since 2000.
California wages and costs
Rising operating costs and California's $20-per-hour fast-food minimum wage were cited as pressures on the business. Dharod also blamed a lack of support and innovation from Carl’s Jr. for the restaurants’ financial struggles, putting the franchise relationship itself under strain alongside labor costs.
Employees told the outlet that understaffing, workplace injuries and violent encounters with customers also contributed to the restaurants’ challenges. For workers and local customers, the restructuring means the operator is not trimming a handful of stores but reshaping a 59-location California base.
Carl’s Jr. says only one operator
“We are aware that Carl’s Jr. franchisee Harshad Dharod entities and its affiliates, which together independently own and operate certain Carl’s Jr. restaurants in California, have entered into a court-supervised restructuring process under Chapter 11 of the United States bankruptcy code,” a Carl’s Jr. company representative said. “This situation is specific to this individual’s financial and business circumstances.”
That leaves other Carl’s Jr. locations outside Dharod’s network unaffected, while the California stores tied to Friendly Franchisees Corporation face the immediate overhaul. The clearest near-term outcome is a split outcome for the 59 restaurants: 10 closures and 49 sales, with the Chapter 11 process setting the terms of what survives and who buys the rest.
