Several Hardee’s locations across Georgia are caught in a wider shutdown rippling through the fast-food chain’s footprint, after a legal fight with one of its largest franchise operators ended with dozens of restaurants closing their doors, sometimes without much warning.
A lawsuit that quickly turned into locked doors
The trouble traces back to a lawsuit filed by Hardee’s against ARC Burger, a major franchisee backed by High Bluff Capital Partners.
According to reporting by USA TODAY, Hardee’s accused ARC Burger of repeated contract violations, including falling behind on required payments tied to its franchise agreements.
Court documents suggest the payment issues began as early as December 2024. The list was long and pretty unforgiving. Royalties. Advertising fees. Training costs. Technology charges. Rent. Even taxes.
After the lawsuit landed last month, ARC Burger responded by closing all of the Hardee’s locations it owned.
That decision, more than the legal filing itself, triggered the wave of closures now reaching Georgia.
How many Georgia locations are affected remains unclear
ARC Burger operated 77 Hardee’s restaurants across eight states. Georgia was one of them, along with Alabama, Florida, Illinois, Missouri, Montana, South Carolina, and Wyoming.
What’s still fuzzy is the exact number of Georgia stores that were open at the time the closures happened.
Hardee’s has confirmed that every ARC Burger–owned restaurant is now shut down, but neither the company nor court filings have provided a state-by-state breakdown. That lack of clarity has left local communities guessing.
In some towns, residents noticed only when they pulled up for breakfast biscuits and found the lights off. No signs. No notices taped to the door. Just quiet.
A Hardee’s spokesperson told USA TODAY that the closures followed ARC Burger’s failure to resolve the alleged violations, adding that the chain is reviewing options for affected markets.
For Georgia, that review could take time.
What the lawsuit says ARC Burger failed to pay
The lawsuit itself paints a picture of a franchise relationship that had been straining for months before it snapped.
Hardee’s claims ARC Burger missed multiple financial obligations required under its contracts. Those obligations included:
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Franchise royalties tied to sales
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Contributions to national and local advertising funds
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Fees for technology systems and employee training
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Rent payments on company-controlled properties
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Certain tax-related responsibilities
Franchise agreements are strict by design. Miss enough payments, and the math stops working.
Legal experts say it’s not unusual for disputes like this to end in closures, but the scale here stands out. Seventy-seven restaurants shutting down at once is no small thing, especially across multiple states.
The case is still moving through the courts, and ARC Burger has not publicly detailed its defense beyond filings already submitted.
Workers and communities feel the immediate hit
While corporate statements focus on contracts and compliance, the fallout on the ground looks very different.
Employees at affected Georgia locations say they were often left with little notice. Some reported showing up for scheduled shifts only to be told the restaurant was closed for good.
For hourly workers, that kind of surprise can sting. Lost income doesn’t wait for court dates.
Local officials in smaller Georgia communities worry about what comes next. A closed fast-food restaurant may sound minor, but in some areas it means fewer jobs, less foot traffic, and one more empty building sitting off a highway exit.
Hardee’s has said it is exploring whether some locations could reopen under new operators, though no timeline has been shared. Franchise transitions take time, and there’s no guarantee every site will find a new owner.
A familiar pressure point in fast-food franchising
The situation highlights a broader pressure building across the fast-food industry.
Rising labor costs, higher food prices, and tighter consumer spending have made margins thinner, especially for franchise operators carrying debt. Private equity-backed groups, like ARC Burger, often rely on scale to make the numbers work.
When that balance slips, things can unravel fast.
Industry analysts note that franchise disputes rarely make headlines unless closures pile up. This one did. And Georgia, with its mix of urban and rural Hardee’s locations, ended up squarely in the path.
For now, the chain’s remaining Georgia restaurants not tied to ARC Burger continue operating as usual. But uncertainty has a way of spreading, especially among workers watching nearby stores go dark.
As the legal fight continues, Georgia diners are left waiting to see whether familiar Hardee’s signs light back up, or fade out for good.
