The franchisee of the Big Burger chain of fast-food franchisees files for Chapter 11 bankruptcy
A multimillion-dollar creditor dispute has led to a Hardee’s restaurant franchisee filing for bankruptcy to seek an automatic stay from creditors.
Hardee’s restaurant company Superior Star LLC filed for Chapter 11 bankruptcy protection, facing allegations of a financial dispute with the retailer, according to court documents.
Hardee’s franchisee files for bankruptcy
The Phoenix-based franchisee filed for bankruptcy in the U.S. Bankruptcy Court for the Western District of Kentucky on July 9, listing $10 million to $50 million in assets and liabilities, according to PacerMonitor.
The largest creditors include Starcorp LLC, which is owed $7.04 million on a disputed seller’s note according to the release; Lionsgate Investment, owed more than $184,000 in terminated leases; The Kosmides Family Trust, which is owed more than $147,000 in settlements; FJ Enterprises LLC, which owes more than $144,000 in settlement payments; McLane Company Inc., owed more than $138,000 for food products; and MB2K LLC, owed more than $123,000 in rent, according to court documents.
Superior Star, which purchased 93 Hardee’s locations in 10 states from Starcorp in 2023, currently operates 59 locations in Midwestern states. The company is closing about 12 locations by 2025, according to Nation’s Restaurant News.
The debtor and Starcorp entered into a financial dispute over a $7.04 million seller’s note.
“We are aware that Frandee’s franchisee Superior Star, which independently owns and operates certain Hardee’s restaurants primarily in the Midwest region, has filed for voluntary relief under Chapter 11 of the U.S. bankruptcy code,” franchisor Hardee’s said in a statement.
Hardee’s comments on the argument
“Superior Star’s decision to file is based on its specific financial and business circumstances. We remain focused on continuing to strengthen the Hardee’s program and deliver a quality experience to our guests,” Hardee said.
Burger chain franchisor CKE Restaurants Holdings, which sells 66-year-old Hardee’s and Carl’s Jr. restaurants, has been at war with some of its franchisees as it tries to raise money, such as franchise fees, digital fees, advertising fees, and rent.
One such dispute led the franchisee to file for Chapter 7 bankruptcy.
CKE subsidiary Hardee’s Restaurants LLC is suing franchisee ARC Burger LLC for alleged breach of contract, seeking to recover more than $6.5 million in unpaid franchise fees and other obligations, according to Law.com.
ARC Burger LLC, closed all 77 of its locations after Hardee’s Restaurants LLC filed a lawsuit in November 2025, alleging failure to pay franchise fees and other obligations.
