Beloved fast-food chain closes nearly 80 locations after lawsuit shakes up business

When it comes to fast-food chains, Hardee’s has a loyal following, particularly when it comes to its breakfast offerings.
But that following wasn’t enough to keep a major franchisee in the game, and so there is bad news for fans of the chain in at least eight states because their local restaurant has been shut down.
According to reports, 77 Hardee’s have been closed. The restaurants are located in Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming. The decision comes after Hardee’s Restaurants reportedly sued ARC Burger claiming that the franchisee failed to keep up with payments.
ARC Burger reportedly made the decision to shuttering the locations in response to the lawsuit.
The lawsuit claimed that the franchisee started missing payments in December 2024. Hardee’s claimed the payments included franchise royalties, technology and training fees, rent and taxes and advertising contributions.
“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,” Hardee’s said in a statement to USA Today.
Hardee’s was reportedly suing ARC Burger for $6.5 million it said were owed as part of its franchise agreements.
The locations were all set to close by the end of 2025, but there is some hope for loyal Hardee’s fans. KCTV 5 reported that just because some of the locations have been shut down by ARC Burger, Hardee’s could choose to revive the locations and operate them.




