Large Fast Food Chain Files Bankruptcy Closing 77 Restaurants

Fast Food fans may be wondering what the future holds after news that one of the fast-food chain's largest franchise operators has filed for bankruptcy.

The bankruptcy filing, however, doesn't mean the Hardee's brand itself is going out of business.

ARC Burger LLC, a major Hardee's franchisee that previously operated 77 restaurants across nine states, has filed for Chapter 7 bankruptcy after a lengthy legal dispute with Hardee's parent company, CKE Restaurants.

The filing comes months after the franchise agreement was terminated and the affected restaurants were permanently closed.

The locations involved were primarily located in Alabama, Florida, Georgia, Illinois, Kansas, Missouri, Montana, South Carolina, and Wyoming.

Hardee's continues to operate hundreds of restaurants nationwide through a network of independently owned franchisees.

Like many restaurant chains, each franchise owner is responsible for operating their own locations, meaning financial problems affecting one franchisee don't necessarily spread to others.

The bankruptcy follows a legal battle in which Hardee's accused ARC Burger of failing to pay millions of dollars in royalties, rent, and other franchise fees.

After negotiations broke down, the company terminated the franchise agreement, ultimately leading to the closure of all 77 restaurants operated by ARC Burger.

For now, customers throughout Minnesota, Iowa, and South Dakota can continue ordering their favorite Thickburgers, Made From Scratch Biscuits, and breakfast items without interruption, as local Hardee's restaurants remain open and are not part of the bankruptcy proceedings.