The American fast-food chain Hardee's is shutting down a number of its restaurants across the United States, a move driven by significant legal and financial disputes within its franchise network.
Franchisee Faces Multi-Million Dollar Lawsuit
Among the recent closures are two Hardee's outlets in Billings, Montana. These were operated by ARC Burger, the brand's largest franchisee. The parent company is now taking legal action against ARC Burger, seeking around $6.5 million in unpaid royalties, marketing contributions, and rent.
This lawsuit highlights the severe financial strain within part of the Hardee's system, directly leading to the disappearance of these local restaurants.
Wave of Closures Hits Multiple States
The troubles extend far beyond Montana. Since the start of October 2025, at least 15 additional Hardee's stores have ceased operations. This quiet retreat has impacted communities in several states, including Minnesota, Illinois, and Georgia.
The scale of these closures suggests a coordinated pullback or a widespread failure to meet operational or financial obligations across different franchise groups.
Further Legal Action Threatens More Shutdowns
Compounding the chain's difficulties, another major franchise operator, Paradigm Investment Group, is embroiled in its own legal fight with Hardee's. The group has filed a suit disputing certain operational demands from the corporate headquarters.
This ongoing conflict poses a serious risk of further restaurant closures if the business relationship between Paradigm and Hardee's is terminated, potentially leaving more gaps in the chain's national presence.
Implications for the Fast-Food Landscape
The quiet shuttering of these Hardee's locations underscores the volatile nature of the franchise model, especially when economic pressures mount. For customers, it means the loss of familiar dining options, while for the industry, it signals the potential for more consolidation and instability among mid-tier chains.
The outcome of the lawsuits against ARC Burger and the dispute with Paradigm will likely determine whether Hardee's can stabilise its network or face a continued contraction of its physical footprint across the United States.
