Hardee's Franchisee Files for Bankruptcy, Cites Unexpected Costs
Superior Star LLC, a major franchisee for the Hardee's fast-food chain, has filed for Chapter 11 bankruptcy protection. The company has already closed dozens of its locations across eight U.S. states.
Phoenix-based Superior Star LLC, which at one point operated more than 90 Hardee's locations, has filed for Chapter 11 bankruptcy protection. The company informed a bankruptcy court this week that it incurred unforeseen maintenance, repair, and tax costs immediately after purchasing the establishments from another franchisee in 2023.
The franchisee claims that some of the acquired Hardee's restaurants were housed in "aged physical facilities" that deterred customers. Superior Star also accuses the seller, StarCorp LLC, of misrepresenting and omitting details related to the sale. Since the 2023 transaction, Superior Star has reduced its footprint to 59 Hardee's locations and is seeking to restructure its operations.
In its court filing, Superior Star stated it closed 30 Hardee's restaurants last year and is now seeking to terminate leases and reduce associated costs. The closures occurred across Illinois, Indiana, Iowa, Kentucky, Minnesota, Missouri, North Dakota, and Ohio, with most restaurants shutting down in November and December 2025.
This marks the second significant franchisee distress for Hardee's in recent years. In December 2025, ARC Burger, another large franchisee, closed 77 locations and later filed for Chapter 7 liquidation. Hardee's is owned by CKE Restaurants, which also operates the Carl's Jr. chain.
Hardee's has indicated it is working to reopen some of the former ARC Burger locations under corporate ownership. However, the overall Hardee's network has seen a decline, with 1,287 locations at the end of fiscal year 2026, a decrease of 107 from two years prior. Several other fast-food franchisees have also sought bankruptcy protection recently.