Lawsuit Forces Fast-Food Chain to Shut Nearly 80 Locations
Hardee’s, known for its breakfast menus and dedicated clientele, is facing significant setbacks. A total of 77 locations of the fast-food chain have been closed across eight states. The affected states include Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina, and Wyoming.
Lawsuit Drives Closures of Hardee’s Locations
The closures stem from a lawsuit filed by Hardee’s Restaurants against ARC Burger, a major franchisee. Hardee’s claims that ARC Burger failed to meet its financial obligations. This lawsuit highlights issues regarding several unpaid fees, including franchise royalties, technology and training fees, as well as rent, taxes, and advertising contributions.
Financial Claims and Franchise Agreements
Hardee’s is seeking $6.5 million in damages owed under the franchise agreements. They assert that ARC Burger began missing payments as early as December 2024. Despite solid sales at various locations, ARC Burger’s failure to address these payment defaults prompted the closures.
Future of Affected Locations
Although the closures are confirmed, there is a glimmer of hope for fans of Hardee’s. Reports indicate that the fast-food chain may consider reopening some of its shuttered locations. Hardee’s has expressed its commitment to exploring options for revival.
- Number of Locations Closed: 77
- States Affected: Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina, Wyoming
- Amount Sued For: $6.5 million
- Missed Payments Start Date: December 2024
These developments mark a challenging period for Hardee’s as it navigates the legal and financial ramifications of the situation with ARC Burger. The unfolding saga highlights the complexities of franchise operations and the potential impact on loyal customers.
