Big fast-food burger chain franchisee files Chapter 11 bankruptcy

A lender quality implicit millions of dollars has led a Hardee's edifice franchisee to record for bankruptcy to invoke an automatic enactment of each ineligible actions against the debtor.

Hardee's edifice franchisee Superior Star LLC filed for Chapter 11 bankruptcy protection, facing an alleged seller financing dispute, according to tribunal papers.

Hardee's franchisee files for bankruptcy

The Phoenix-based franchisee filed its petition successful the U.S. Bankruptcy Court for the Western District of Kentucky connected July 9, listing $10 cardinal to $50 cardinal successful assets and liabilities, according to PacerMonitor.

The debtor's largest creditors see Starcorp LLC, owed $7.04 cardinal successful a disputed seller enactment taxable to setoff; Lionsgate Investment, owed implicit $184,000 successful terminated leases; Kosmides Family Trust, owed implicit $147,000 successful a settlement; FJ Enterprises LLC, owed implicit $144,000 successful a colony agreement; McLane Company Inc., owed implicit $138,000 for nutrient products; and MB2K LLC, owed implicit $123,000 successful rent, according to tribunal papers.

Superior Star, which purchased 93 Hardee's locations successful 10 states from Starcorp successful 2023, presently operates 59 locations successful Midwestern states. The institution closed astir 12 locations successful 2025, according to Nation's Restaurant News.

The debtor and Starcorp are entangled successful a financing quality implicit a $7.04 cardinal seller note.

"We are alert that Hardee's franchisee Superior Star, which independently owns and operates definite Hardee's restaurants chiefly successful the Midwest region, has filed a voluntary petition for alleviation nether Chapter 11 of the U.S. bankruptcy code," franchisor Hardee's said successful a statement.

Hardee's remark connected quality

"Superior Star's determination to record is based connected its ain circumstantial fiscal and concern circumstances. We stay focused connected continuing to fortify the Hardee's strategy and present prime experiences for our guests," Hardee's said.

Burger concatenation franchisor CKE Restaurants Holdings, which franchises the 66-year-old Hardee's and Carl's Jr restaurants, has been successful a conflict with immoderate of its franchisees arsenic it tries to cod revenue, specified arsenic franchise fees, integer fees, advertizing fees, and rent.

One specified quality led a franchisee to record for Chapter 7 bankruptcy liquidation.

CKE affiliate Hardee's Restaurants LLC sued franchisee ARC Burger LLC for alleged breach of contract, seeking to retrieve implicit $6.5 cardinal successful unpaid franchise fees and different obligations, according to Law.com.

ARC Burger LLC, closed each 77 of its locations after Hardee's Restaurants LLC filed a suit against the franchisee successful November 2025, for alleged nonaccomplishment to wage franchise fees and different obligations.