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A Carl's Jr. franchisee that operates dozens of the popular fast food chain's locations has filed for Chapter 11 bankruptcy, according to Restaurant Business.
Harshad Dharod, which owns Friendly Franchisees Corp., the operator of 65 Carl's Jr. locations throughout California, listed both assets and liabilities less than $50,000 and asked a court to manage cases for Sun Gir, Inc., Senior Classic Leasing, DFG Restaurants, Second Star Holdings and Third Star Investments in the filing late last week. Representatives for the franchisor claimed that the filings were caused by operator-specific hurdles.
“We are aware that Carl’s Jr. franchisee Harshad Dharod entities and its affiliates, which together independently own and operate certain Carl’s Jr. restaurants in California, have entered into a court-supervised restructuring process under Chapter 11 of the United States bankruptcy code,” a company representative said in an emailed statement obtained by Restaurant Business. “This situation is specific to this individual’s financial and business circumstances.
“This has no impact on the operations of any other Carl’s Jr. locations and we remain committed to delivering quality experiences for our guests, while driving profitable, sustainable growth for our franchisees and the brand.”
Friendly Franchisees Corps. is credited as the largest California-based Carl's Jr. operator, having acquired the restaurants in 2000. The company is among numerous fast food franchisees that have faced issues in recent years.
Carl's Jr., which has a sibling chain, Hardee's, that is based in Tennessee and operates in the Southeast region, has also reportedly seen a 6% decline in sales to $1.4 billion in 2025, while its unit volumes average also dropped 2.7% to $1.4 million, according to Technomic via Restaurant Business.