56-year-old burger chain franchisee closes store, no bankruptcy
As 2025 comes to a close, many restaurant chains are completing restructuring and transformation strategies to strengthen their operations and generate more revenue and profits.
Jack in the Box is among the burger chains trying to cut costs by closing restaurant locations. The fast food chain launched its Jack on Track return program in April 2025; This program called for the company to close 150-200 underperforming restaurants, up to 120 by December 31, 2025.
The remaining underperforming restaurants will close as their franchise agreements expire.
Burger chain franchisor CKE Restaurant HoldingsThe company, which franchises Hardee’s and Carl’s Jr. restaurants, is in a battle with some franchisees as it tries to collect revenue such as franchise fees, digital fees, advertising fees and rent.
CKE Restaurants operates more than 3,800 Hardee’s and Carl’s Jr. locations in 44 states and 43 countries. operates the restaurant.
CKE’s Hardee’s Restaurants LLC sued franchisee ARC Burger LLC, which owns 80 Hardee’s locations, alleging breach of contract and seeking more than $6.5 million in unpaid franchise fees and other liabilities. Hukuk.com.
The franchisee is alleged to have defaulted on various payments, including royalties, advertising fees and rent, starting in December 2024.
Facing expensive lawsuits and millions of dollars in debt to Hardee’s, ARC Burger closed nearly 28 of the food chain’s restaurants by December 20. KXEO Radio Inc. Mexico, Mo., reported. However, ARC did not file for bankruptcy protection, which would have automatically postponed the case.
Wendy’s, which operates approximately 6,000 locations in the U.S. and approximately 7,330 locations worldwide in the third quarter of 2025, said: earnings call It said it would close “an average single-digit percentage of U.S. restaurants,” estimated to be about 300 restaurants.
Wendy’s CEO Ken Cook said in the earnings call that the burger chain plans to close “consistently underperforming restaurants.”
And now Wendy’s has closed a location that no longer makes sense to operate, as the major burger chain permanently shutters its Stockton, Calif., restaurant as its lease is about to expire.
The franchisee who owns the 10512 Trinity Parkway location of Wendy’s shuttered the restaurant, removed the signs and boarded them up on the building in early December. Stockton Register reported. The building is located next to Starbucks and El Pollo Loco.
