Hardee’s franchisee ARC Burger files for bankruptcy—but are “Thickburgers” going away?

A major Hardee's operator has closed all its doors for good. ARC Burger LLC filed for Chapter 7 bankruptcy liquidation on Monday in the U.S. Bankruptcy Court for the Northern District of Georgia, according to The U.S. Sun. The filing cites "a period of significant financial instability."

The company racked up more than $29 million in total debt, the report confirms. Creditors include the Georgia Department of Revenue, owed $403,569 in taxes, said court records. Former employees are owed about $19,000 in unpaid wages.

According to The U.S. Sun, ARC Burger acquired 80 Hardee's locations in 2023 from Summit Restaurant Holdings after that firm's Chapter 11 bankruptcy. The restaurants spanned Alabama, Florida, Georgia, Illinois, Kansas, Missouri, Montana, South Carolina, and Wyoming.

Lawsuit sparks shutdown

Hardee's sued ARC Burger in November 2025 over $6.5 million in unpaid royalties, advertising fees, and rent starting December 2024, according to The U.S. Sun. The chain claimed ARC refused a workout deal.

Closures followed quietly from December 2025. Sites in Billings, Montana, Minnesota, South Dakota, North Dakota, Illinois, and Iowa shut permanently.

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In North Florida, four spots closed: Bonifay at 211 S. Waukesha St., Chattahoochee at 651 W. Washington St., Chipley at 1212 Main St., and Graceville at 5425 Cotton St., reports Tallahassee Democrat. They show as "temporarily closed" on Hardee's site.

Reopening hopes in Florida

Some Florida Hardee's may revive soon. The Tallahassee Democrat noted that job listings on SimplyHired.com and Indeed.com seek shift leaders at Chipley and Graceville sites, noting they are "now corporate owned."

A Hardee's spokesperson told Fast Company the chain reopened 15 locations in Georgia, Missouri, and South Carolina as corporate stores, per Tallahassee Democrat. Hardee's expects to resume operations at more than 40 ex-ARC sites.

In Florida, ARC owed over $80,000 to companies, $7,500 to cities like Bonifay and Graceville, $10,500 to FPL, and nearly $50,000 to the state revenue department, court documents show.

Hardee's, famed for made-from-scratch biscuits and charbroiled Thickburgers, opened in 1960 in Greenville, North Carolina, according to the Tallahassee Democrat. CKE Restaurants Inc. bought it in 1997. Over 1,500 U.S. spots remain, ScrapeHero reports, including 90 in Florida.

These events highlight franchise struggles in fast food. ARC's fall echoes prior owners' woes.