Hardee’s is staging a determined recovery, reopening 15 restaurants that went dark after the sudden collapse of one of its largest franchise operators and setting the groundwork for dozens more to follow.
The fast-food chain has restarted operations at 15 former locations across Georgia, Missouri, and South Carolina — all previously run by ARC Burger, a franchisee that abruptly shut down all 77 of its Hardee‘s restaurants in December 2025. The closures wiped out roughly 1,600 jobs just weeks before Christmas, leaving communities across several states without locations they had depended on for years.
From franchise failure to corporate ownership
The 15 restaurants that have been brought back are now operating under direct corporate control rather than through a franchisee arrangement. Recent job postings for the reopened locations explicitly identified them as corporate-owned, and several listings were flagged as urgent — a clear sign that the company is moving with intent to staff kitchens and restore drive-thru service as quickly as possible.
The shift to corporate ownership marks a meaningful departure for a brand that, like most major fast-food chains, has historically leaned on franchisees to run its locations. In this case, the implosion of ARC Burger left Hardee’s with little choice but to step in directly if it wanted to reclaim its presence in affected markets.
How ARC Burger’s collapse unfolded
ARC Burger was formed in 2023 by High Bluff Capital Partners, a private equity firm that also holds ownership stakes in brands including Quiznos and Taco Del Mar. The company acquired 80 Hardee’s locations from Summit Restaurant Holdings, another distressed operator that had struggled to maintain its own portfolio before offloading it.
The transition proved catastrophic. ARC Burger failed to stabilize the business, and Hardee’s eventually filed suit against the franchisee, alleging it had failed to pay approximately $6.5 million in royalties, rent, advertising fees, and other obligations. ARC Burger ultimately filed for Chapter 7 liquidation, disclosing debts exceeding $29 million that included unpaid taxes and wages owed to workers.
ARC Burger has pushed back against that account. In court filings, the company accused Hardee’s of handing over restaurants that were already in poor shape — with failing equipment and deteriorating facilities — while providing inadequate operational support. The franchisee further alleged that Hardee’s used litigation to pressure an operator already buried under costly repairs and chronically underperforming stores.
A broader plan taking shape
Hardee’s has framed the reopenings as a deliberate return to form rather than reactive damage control. The company confirmed that more than 40 additional former ARC Burger sites are under consideration for revival, and that planning for those locations is actively underway.
Beyond the ARC Burger portfolio, Hardee’s also said it is exploring ways to reopen other shuttered restaurants unrelated to the ARC collapse — either through new franchisee agreements or by bringing more locations under direct corporate ownership. That ambition points to a restoration effort broader than simply filling the gap left by one failed operator.
A brand with deep roots in American fast food
Founded in 1960 in North Carolina, Hardee’s built its reputation on charbroiled burgers and made-from-scratch biscuits, cultivating a loyal following across the South and Midwest over more than six decades.
The events of the past several months tested that loyalty in tangible ways. Nearly 1,600 workers lost their jobs without warning during the holiday season, and entire communities went without locations they had visited for years. The 15 reopened restaurants are a first step toward repairing that disruption — but how quickly Hardee’s can bring the remaining 40-plus locations back online will determine how much of the goodwill it can genuinely restore.
Source: Yahoo Finance / Complex / Fast Company