Hardee’s restaurants closing locations 2025 due to lawsuit—it’s a phrase that’s been buzzing across news feeds lately, and for good reason. If you’re a fan of those thick, juicy charbroiled burgers or the iconic breakfast biscuits, you might be wondering what’s going on with your local spot. Picture this: one day everything’s normal, drive-thru lines moving steadily, and the next—poof—signs on the doors saying closed. That’s the reality hitting dozens of Hardee’s spots right now, all tied back to a messy legal battle. Let’s dive in and unpack why Hardee’s restaurants closing locations 2025 due to lawsuit is making headlines.
Understanding the Roots of Hardee’s Restaurants Closing Locations 2025 Due to Lawsuit
Have you ever thought about how fast-food chains really operate? Most of us grab a meal without considering the behind-the-scenes drama, but franchises are like complicated family businesses—full of agreements, payments, and occasional fallouts. In this case, Hardee’s restaurants closing locations 2025 due to lawsuit stems from a dispute with one of its biggest franchise operators, ARC Burger.
ARC Burger, backed by private equity firm High Bluff Capital Partners, snapped up around 80 Hardee’s locations back in 2023 after the previous owner went bankrupt. It seemed like a fresh start, but things quickly soured. By late 2024, payments started slipping—royalties, advertising fees, tech charges, even rent on subleased properties. Hardee’s parent company, CKE Restaurants, tried to work it out for months, but when over $6.5 million piled up unpaid, they pulled the trigger on a lawsuit in November 2025.
Think of it like lending money to a friend who promises to pay back but keeps dodging—eventually, you have to take action. Hardee’s terminated the franchise agreements in September 2025 but allowed temporary operations while hunting for a buyer. When that didn’t pan out, ARC Burger decided to shut down all 77 remaining locations rather than fight on. That’s the core of Hardee’s restaurants closing locations 2025 due to lawsuit: a franchisee default leading to mass closures.
Key Details in the Hardee’s Restaurants Closing Locations 2025 Due to Lawsuit Case
What exactly went wrong? Court docs paint a picture of solid sales at these restaurants, yet the money wasn’t flowing where it should. Hardee’s alleged that profits were going elsewhere, not toward obligations. It’s not about poor performance—many locations were profitable—but about contractual breaches.
This isn’t Hardee’s first franchise headache. They’ve dealt with other operators refusing certain mandates, like extended hours or digital ordering. But this ARC Burger saga is the biggest yet, directly causing Hardee’s restaurants closing locations 2025 due to lawsuit-related shutdowns across multiple states.
Which States Are Affected by Hardee’s Restaurants Closing Locations 2025 Due to Lawsuit?
The impact isn’t nationwide, thank goodness, but it’s hitting eight states hard. If you live in one of these areas, your favorite Hardee’s might be on the chopping block:
- Alabama: Only a handful, like the one in Geneva, but still a loss for locals.
- Florida: Several spots vanishing, especially in rural areas where options are limited.
- Georgia: Abrupt closures shocked customers in places like Rome and Resaca.
- Illinois: Multiple shutdowns reported, adding to earlier ones.
- Missouri: Heavy hit here, with Kansas City metro spots going dark suddenly.
- Montana: Even remote locations in Billings closed.
- South Carolina: Part of the Southeast sweep.
- Wyoming: Sparse but significant for those communities.
All told, 77 locations are winding down by year’s end. Some closed abruptly mid-shift, leaving employees and customers stunned. Imagine pulling up for a Monster Burger only to find locked doors—it’s like showing up to a party that’s already over.
Hardee’s restaurants closing locations 2025 due to lawsuit means these aren’t company-owned stores; they’re franchise-operated. The parent company has emphasized they’re working to reopen many under new operators, but timelines are unclear.
Timeline of Events Leading to Hardee’s Restaurants Closing Locations 2025 Due to Lawsuit
Let’s break it down chronologically, because timing matters in these stories:
- August 2023: ARC Burger buys 80 locations from bankrupt Summit Restaurant Holdings for $16.5 million.
- December 2024: Missed payments begin—royalties, ads, fees, rent.
- June 2025: Hardee’s declares default.
- September 2025: Franchise agreements terminated, but temporary ops allowed.
- November 2025: Lawsuit filed in Tennessee federal court.
- December 2025: Closures roll out, many sudden, all expected done by end of year.
It’s a rapid escalation, showing how quickly things can unravel in franchising.
Impact on Customers and Employees from Hardee’s Restaurants Closing Locations 2025 Due to Lawsuit
Let’s get real—who hurts most here? You and me, the everyday folks.
For customers, it’s nostalgia hitting hard. Hardee’s has been slinging biscuits since the 1960s, a Southern staple with that charbroiled flavor you can’t quite replicate. Losing your go-to spot means longer drives or switching chains. In smaller towns, it’s fewer quick meal options altogether.
Employees? That’s the toughest part. Sudden layoffs mid-shift in some places—no warning, just corporate reps showing up. Hundreds affected, scrambling for new jobs during holidays. Hardee’s says they understand the community impact and are pushing for reopenings, but that’s cold comfort right now.
Rhetorical question: Is a thickburger worth this kind of disruption? For many loyal fans, absolutely—but change is tough.
Broader Context: Why Hardee’s Restaurants Closing Locations 2025 Due to Lawsuit Fits a Pattern
Fast food isn’t immune to challenges. Rising costs, competition from healthier options, price wars—it’s a tough landscape. Hardee’s average store pulls in about $1.2 million yearly, lagging behind giants like McDonald’s.
This lawsuit isn’t isolated. Another franchisee, Paradigm Investment Group, is battling over hours and digital fees, risking more closures. Earlier in 2025, scattered shutdowns hit Midwest states. It’s like a domino effect in a wobbly industry.
Yet Hardee’s remains focused on growth, per their statements. They’re exploring new franchisees to revive closed spots.
Potential Future for Closed Locations Amid Hardee’s Restaurants Closing Locations 2025 Due to Lawsuit
Good news? Not all doom. Hardee’s has hinted at reopenings under different operators. Some insiders say closures might be temporary, with new owners stepping in soon. It’s like a restaurant phoenix—rising from the ashes, hopefully with fresh fries.
Monitor local news or the Hardee’s site for updates. Who knows, your location might flip back open quicker than expected.
What This Means for the Fast-Food Industry
Hardee’s restaurants closing locations 2025 due to lawsuit highlights franchise risks. Parent companies rely on operators, but when payments falter, everyone suffers. It’s a reminder: behind every burger flip is big business drama.
Other chains face similar issues—bankrupt franchisees leading to shuttered spots. But Hardee’s legacy endures; they’ve weathered storms before.
Conclusion
In wrapping up, Hardee’s restaurants closing locations 2025 due to lawsuit boils down to a franchise payment dispute gone nuclear, affecting 77 spots in eight states and leaving fans and workers reeling. From missed royalties starting in 2024 to sudden December 2025 closures, it’s a cautionary tale of franchising pitfalls. Yet, with Hardee’s vowing to pursue reopenings and long-term growth, there’s hope on the horizon. If you’re affected, hang tight—your next biscuit might not be far off. Stay informed, support local eateries, and maybe try cooking that charbroiled magic at home in the meantime. The fast-food world keeps turning, one burger at a time.
Frequently Asked Questions (FAQs)
1. Why exactly are Hardee’s restaurants closing locations 2025 due to lawsuit?
The closures stem from a lawsuit against franchisee ARC Burger for over $6.5 million in unpaid fees like royalties and rent. Rather than resolve it, ARC chose to close all 77 locations.
2. How many Hardee’s locations are affected by Hardee’s restaurants closing locations 2025 due to lawsuit?
Exactly 77 restaurants across eight states are shutting down by the end of 2025 due to this specific dispute.
3. Will the closed Hardee’s reopen after Hardee’s restaurants closing locations 2025 due to lawsuit?
Hardee’s is actively working to find new operators and reopen many locations, though no firm timelines exist yet.
4. Which states see the most impact from Hardee’s restaurants closing locations 2025 due to lawsuit?
Missouri, Georgia, and Illinois have notable numbers, with sudden closures reported in cities like Kansas City and Rome.
5. Is this the only reason for Hardee’s closures in 2025, or are there other factors tied to Hardee’s restaurants closing locations 2025 due to lawsuit?
This lawsuit directly causes these 77 closures, but Hardee’s has faced separate issues like other franchise disputes and underperformance in scattered spots earlier in the year.
