Summary (tl;dr)

A major Hardee's franchisee, ARC Burger LLC, has filed for Chapter 7 bankruptcy liquidation, leading to the immediate closure of all 77 of its Hardee's restaurant locations across nine states.

Essential Background

The affected Hardee's locations have a history of financial instability, having been acquired by ARC Burger in 2023 from another franchisee, Summit Restaurant Holdings, after Summit also filed for Chapter 11 bankruptcy. Hardee's Restaurants LLC initiated a lawsuit against ARC Burger in November 2025, seeking to recover over $6.5 million in unpaid royalties, advertising fees, and rent that reportedly began accumulating in December 2024.

The Full Story

On April 20, 2026, ARC Burger LLC, based in Marietta, Georgia, filed for Chapter 7 bankruptcy liquidation in the U.S. Bankruptcy Court for the Northern District of Georgia, citing more than $29 million in total debt. This filing resulted in the closure of all 77 Hardee's restaurants operated by ARC Burger, spanning across states including Alabama, Florida, Georgia, Illinois, Kansas, Missouri, Montana, South Carolina, and Wyoming. The bankruptcy comes after a period of escalating legal disputes with the franchisor over significant unpaid financial obligations.

Why It Matters

This bankruptcy and widespread closure highlight the financial challenges facing some segments of the fast-food industry and individual franchisees, particularly as operating costs rise and profit margins shrink. The event raises concerns about the stability of other franchisees and the potential for further restaurant closures within the Hardee's system, impacting local economies and employment in the affected regions.

Geographic Location

• Marietta, Cobb County, Georgia, United States (ARC Burger LLC based)
• U.S. Bankruptcy Court for the Northern District of Georgia, Georgia, United States (Chapter 7 bankruptcy liquidation filed)
• Middle District of Tennessee, Tennessee, United States (Hardee's Restaurants LLC filed lawsuit against ARC Burger)
• Alabama, United States (77 Hardee's locations closed)
• Florida, United States (77 Hardee's locations closed, including Bonifay, Chattahoochee, Chipley, and Graceville)
• Georgia, United States (77 Hardee's locations closed)
• Illinois, United States (77 Hardee's locations closed)
• Kansas, United States (77 Hardee's locations closed)
• Missouri, United States (77 Hardee's locations closed)
• Montana, United States (77 Hardee's locations closed)
• South Carolina, United States (77 Hardee's locations closed)
• Wyoming, United States (77 Hardee's locations closed)