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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 Superior Star LLC files for Chapter 11 bankruptcy amid creditor dispute.Shutterstock

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.

ARC filed for Chapter 7 bankruptcy

The payee then filed for a Chapter 7 bankruptcy discharge on April 20, 2026, which requested an automatic stay while the bankruptcy case continued.

Hardee’s, however, has reopened 25 ARC locations as company-operated stores and plans to open more, according to Nation’s Restaurant News.

Another Hardee’s franchisee, Paradigm Investment Group, fought with franchiser CKE Restaurants Holdings over parental demands that the franchisee’s restaurants stay open until 2 p.m., pay digital fees, and comply with loyalty program instructions.

CKE Restaurants indicated it would terminate Paradigm’s franchise agreements if the franchisee – which operated 76 Hardee’s restaurants in Alabama, Florida, Mississippi, and Tennessee – did not make changes and payments. The business owner refused, and CKE on Jan. 15, 2025, sent Paradigm a notice of default and termination, threatening to cancel the franchise agreements on April 15, 2025.

CKE Restaurants operates more than 3,800 Hardee’s and Carl’s Jr. restaurants. in 44 states and 43 countries.

Related: Costco and Walmart capture grocery crowns

Superior Star accommodations

Related: Major tire and auto repair franchisee files for Chapter 11 bankruptcy

This story was originally published by TheStreet on Jul 11, 2026, where it first appeared on Restaurants part. Add TheStreet as a Preferred Source by clicking here.

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