Struggling Hardee’s terminates a large franchisee

Hardee’s is having difficulty with another of its large-scale franchisees, and this one just bought their restaurants two years ago.

The fast-food chain late last month filed a lawsuit against ARC Burger, a franchisee owned by the same private-equity firm that owns Church’s Chicken, Taco Del Mar and Quiznos. ARC acquired 80 locations in 2023 following the bankruptcy filing of their former owner, Summit Restaurant Holdings.

Hardee’s in its lawsuit said that ARC owes the company more than $6.5 million in unpaid royalties, marketing fund and rent on 28 of the locations. ARC’s restaurants are in Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming…

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