Superior Star LLC, a Phoenix-based Hardee’s franchisee, filed for Chapter 11 bankruptcy protection on July 9, 2026, citing a dispute over a $7.04 million seller note tied to its 2023 acquisition of the restaurants, according to court filings. The filing puts 59 Hardee’s store closures at risk across 10 Midwestern states, marking another blow to the struggling burger chain’s franchisee base.
Superior Star acquired approximately 93 Hardee’s locations in 2023 for $15 million from Starcorp LLC, a Nevada-based company, and spent an additional $4 million on operational improvements. However, court documents reveal the restaurants were in far worse condition than expected, forcing the operator to absorb extensive deferred maintenance, unpaid taxes, and other hidden liabilities that drained cash flow.
“Due to various omissions and/or misrepresentations by the seller, almost immediately after the acquisition of the restaurants, the debtor was forced to absorb extensive and unforeseen deferred maintenance and repair expenses, unpaid taxes, and other latent liabilities,” Brian Bonfiglio, CEO of Superior Star, stated in a court filing. The company reported that its 59 remaining restaurants generated approximately $80 million in gross revenue, yet the operator’s principals spent $2 million over the past 2.5 years to fund the franchisee, including $300,000 recently to cover payroll.
The seller note with Starcorp is listed as disputed and subject to setoff, meaning Superior Star believes it may have claims against the seller. The company has also accumulated more than $900,000 in settlement agreements with landlords and investors related to closed locations, which it intends to reject in bankruptcy court. Superior Star reported between $10 million and $50 million in both assets and liabilities.
The bankruptcy filing also revealed that Superior Star fell behind on state sales taxes in some locations, triggering bank account levies that further reduced cash flow and ultimately prompted the decision to seek bankruptcy protection. The company has closed at least 12 locations over the past year.
This is the second major Hardee’s franchisee bankruptcy in 2026. In April, Arc Burger LLC filed for Chapter 7 liquidation after closing 77 locations across nine states. Arc Burger had acquired restaurants out of bankruptcy from Summit Restaurant Holdings in 2023—the same year Superior Star made its acquisition. When Arc Burger shuttered its restaurants in late 2025, Hardee’s subsequently reopened 25 of those locations as company-owned units and planned to open more.
Hardee’s, owned by Roark Capital-backed CKE Restaurants, has struggled with weak sales and declining average unit volumes for years. The chain has closed nearly 400 locations since 2017 and currently operates under 1,500 restaurants, with an average unit volume of $1.3 million—among the smallest of major fast-food burger chains. The franchisor acknowledged Superior Star’s filing in a statement, saying the company “remains focused on continuing to strengthen the Hardee’s system.”
Sources
- Nation’s Restaurant News — Superior Star’s bankruptcy filing details, location count, seller note dispute, and Hardee’s franchisee bankruptcy pattern
- Restaurant Business — Superior Star CEO statement, acquisition cost and improvement expenses, revenue figures, principals’ funding amounts, settlement agreements, and tax levy information
- QSR Magazine — Superior Star operating 59 locations across 10 states and July 9 filing date
- The Street — Starcorp financing dispute and seller note details
