A major Carl’s Jr. franchisee plans to shed 59 locations across California after filing for a license. bankruptcy protection earlier this year.
Harshad Dharod plans to close 10 restaurants and sell 49 others belonging to the Anaheim-born fast-food chain, according to to the Los Angeles Times.
Dharod’s Friendly Franchisees Corporation, which bills itself as the largest California-based Carl’s Jr. franchisee, has acquired at least 65 locations since 2000, according to its website.
However, rising operating costs and California’s $20-an-hour fast-food minimum wage have reportedly strained the business, prompting the company to file for Chapter 11 bankruptcy protection in April, the Times reported.
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A customer is seen leaving a Carl’s Jr. fast food restaurant on August 16, 2023. (Xavi López/SOPA Images/LightRocket / Getty Images)
Dharod also blamed what he described as a lack of support and innovation from Carl Jr. for the financial difficulties of restaurants, according to the media.
Bankruptcy filings reportedly showed that Dharod’s restaurants generated more than $6 million in monthly revenue while losing more than $600,000 per month in 2026.
Staff shortages, workplace accidents and violent clashes with customers also contributed to the situation. restaurant challengesemployees told the outlet.
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The Carl’s Jr. logo seen on a Carl’s Jr. restaurant in the Mill Woods area of Edmonton, Alberta, Canada on May 28, 2025. (Artur Widak/NurPhoto/Getty Images)
A spokesperson for Carl’s Jr. previously said Restaurant Business that the restructuring is specific to Dharod’s operations and will not affect other Carl’s Jr. locations.
“We are aware that the Carl’s Jr. Harshad Dharod franchise entities and its affiliates, which together independently own and operate certain Carl’s Jr. restaurants. in Californiahave entered into court-supervised restructuring proceedings under Chapter 11 of the U.S. Bankruptcy Code,” a company representative said in a statement.
“This situation is specific to that person’s financial and business situation.
Customers leave a Carl’s Jr. store in Madrid, Spain, October 24, 2023. (Xavi López/SOPA Images/LightRocket / Getty Images)
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According to brokerage firm National Franchise Sales, potential buyers are already showing interest, the Times reported.
If the locations are sold, operations could continue without interruption, as employees and management often remain in place when the franchise changes hands.
FOX Business has reached out to Carl’s Jr., Harshad Dharod and Friendly Franchisees Corporation for more information.
