- A major Carl's Jr. franchisee, which operates 65 locations across California, has filed for Chapter 11 bankruptcy protection.
- Multiple companies owned by Harshad Dharod, CEO of Friendly Franchisees Corporation, submitted the filings late last week.
- Each entity reported less than $50,000 in both assets and liabilities, with Sun Gir, Inc. requesting the cases be consolidated for more efficient court oversight.
- The Chapter 11 filing allows the companies to restructure their debts while continuing to operate, with Carl's Jr. clarifying that this situation is specific to this franchisee and does not reflect the overall health of the brand or its other locations.
- This bankruptcy highlights increasing pressure on restaurant operators, particularly in California, due to rising labour costs, higher food prices, shifting consumer habits, and a new state law mandating a $20 an hour minimum wage for fast-food workers.
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Carl’s Jr. franchisee owning 65 restaurants files for bankruptcy
