Hardee’s expects to reopen more than 40 locations after franchisee ARC Burger LLC filed for Chapter 7 bankruptcy on April 20, 2026, closing 77 restaurants across nine states and triggering a shift to corporate ownership of the chain’s restaurant portfolio.
ARC Burger, one of Hardee’s largest operators, shuttered all 77 of its locations across Alabama, Florida, Georgia, Illinois, Kansas, Missouri, Montana, South Carolina, and Wyoming as part of the bankruptcy liquidation. The company had accumulated over $29 million in debt, court records show.
The bankruptcy followed a legal dispute between Hardee’s and ARC Burger. Hardee’s sued the franchisee in November 2025, claiming the operator owed more than $6.5 million in unpaid royalties, advertising fees, and rent starting in December 2024. Hardee’s had already terminated the franchise agreement in September 2025, but allowed ARC Burger to continue operating the restaurants until they could be sold.
Within weeks of the bankruptcy filing, Hardee’s moved to reclaim and reopen the closed locations under direct corporate management. By late April 2026, the chain had already restarted operations at approximately 15 to 20 former ARC Burger locations in Georgia, Missouri, and South Carolina. Job listings for positions at several reopened sites, including in Florida, described the restaurants as “now corporate owned.”
The corporate takeover reflects a broader shift in Hardee’s strategy following years of franchisee troubles. ARC Burger itself had acquired roughly 80 Hardee’s locations in 2023 from Summit Restaurant Holdings, another franchisee that filed for Chapter 11 bankruptcy. The pattern of franchisee bankruptcies has extended beyond Hardee’s: in 2025 and 2026, major fast-food operators including Carl’s Jr., Popeyes, and Burger King franchisees have filed for bankruptcy protection, citing financial strain and operational challenges.
Hardee’s stated that it would “continue to explore options to reopen additional closed locations, either as corporate or franchisee-owned restaurants,” signaling that not all 40-plus locations may remain under direct company control long-term. The chain emphasized the importance of the restaurants to their local communities.
Sources
- Tallahassee Democrat — ARC Burger bankruptcy filing details, four Florida locations, corporate reopening plans
- People.com — ARC Burger Chapter 7 bankruptcy on April 20, 2026, 77 locations closed
- Restaurant Dive — 60-store Hardee’s operator bankruptcy, Superior Star Corp filing details
- Yahoo Finance — Early reopenings at 15 former ARC Burger locations in Georgia, Missouri, and South Carolina
- Fast Company — Job listings describing reopened locations as “now corporate owned”
- Metaintro — Hardee’s reopening 40+ closed locations across 8 states
- Franchise Times — Broader franchisee bankruptcy trends in fast food, including Carl’s Jr. and Popeyes
