Dozens of Hardee’s locations are set to close across the United States after one of its largest franchisees allegedly failed to keep up to date with its payments.
ARC Burger, operated by High Bluff Capital Partners, is currently being sued by Hardee’s over missed franchisee payments and other contract obligations with the company, according to court documents obtained by USA TODAY. Following that lawsuit, which was filed last month, ARC Burger decided to close the Hardee’s locations it owned.
In an emailed statement to USA TODAY, Hardee’s Restaurants confirmed the closure of all the franchised restaurants.
“These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales and our continued attempts over the course of many months to reach a resolution that would keep these restaurants open,” Hardee’s said.
The lawsuit said that ARC Burger owns Hardee’s 77 locations in Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming.
