56-year-old burger chain franchisee closes store, no bankruptcy

As 2025 winds down, several restaurant chains are completing restructuring and turnaround strategies to strengthen their operations and generate increased revenue and profits.

Jack in the Box is among the burger chains seeking to cut costs by closing restaurant locations. The fast-food chain launched its Jack on Track turnaround program in April 2025, which called for the company to close 150-200 underperforming restaurants, with up to 120 closed by Dec. 31, 2025.

Jack in the Box closes underperforming restaurants

The remaining underperforming restaurants would close as franchise agreements terminate.

Burger chain franchisor CKE Restaurants Holdings, which franchises Hardee's and Carl's Jr restaurants, has been in a battle with some of its franchisees as it tries to collect revenue, such as franchise fees, digital fees, advertising fees, and rent.

CKE Restaurants operates over 3,800 Hardee’s and Carl’s Jr. restaurants across 44 states and 43 countries. 

CKE affiliate Hardee's Restaurants LLC sued franchisee ARC Burger LLC, which owned 80 Hardee's locations, for alleged breach of contract, seeking to recover over $6.5 million in unpaid franchise fees and other obligations, according to Law.com.

The franchisee allegedly defaulted on various payments, including royalties, advertising fees, and rent, beginning in December 2024.

Hardee's franchisee closes 28 locations

ARC Burger, facing expensive litigation and millions of dollars of debt to Hardee's, closed about 28 of the dining chain's restaurants by Dec. 20,  KXEO Radio Inc. of Mexico, Mo., reported. ARC has not filed for bankruptcy protection, which would trigger an automatic stay of litigation, however.

Wendy's, which operates about 6,000 locations in the U.S. and about 7,330 worldwide, said during its third quarter 2025 earnings call that it would close "around a mid-single-digit percentage of U.S. restaurants," which is estimated to be about 300 restaurants.

The burger chain planned to close "consistently underperforming restaurants," Wendy's CEO Ken Cook said in the earnings call.

Wendy's closes restaurant as lease expires

And now, Wendy's has closed a location that no longer makes sense to operate, as the huge burger chain permanently shut a Stockton, Calif., restaurant whose lease was expiring.

The Wendy's franchisee that owned the 10512 Trinity Parkway location in early December shuttered the restaurant, removed signage, and boarded up the building, the Stockton Record reported. The building is located next to a Starbucks and an El Pollo Loco.

Wendy's operates four other locations in Stockton that are not closing.

Stockton Wendy's open locations:

• 3810 E. Hammer Lane, Stockton
• 225 W. Hammer Lane, Stockton
• 4431 E. Waterloo Road, Stockton
• 2439 W. March Lane, Stockton

"The lease was up on this location and the franchisee decided to not renew. Our franchisee is committed to supporting their restaurant team, and impacted employees were notified in advance and provided information about opportunities at other Wendy’s locations in the area," a Wendy's spokesperson said, according to The Record.

"We remain grateful for the support of our Stockton community and encourage guests to visit our other area restaurants, where our commitment to quality food and service continues," the statement said.

Another Hardee's franchisee, Paradigm Investment Group, is also battling CKE Restaurants over the parent’s demands that the franchisee’s restaurants stay open past 2 p.m., pay digital fees, and adhere to loyalty program mandates, which the franchisee refuses to implement.

More closings:

• Casual Mexican restaurant chain closes more locations
• 79-year-old national trucking company closes down, no bankruptcy
• 65-year-old Home Depot rival shutters business permanently

CKE Restaurants demanded that Paradigm make the changes and payments and threatened to terminate Paradigm’s franchise agreements. The franchisee refused, and CKE on Jan. 15 sent Paradigm a notice of default and termination, threatening to cancel the franchise agreements on April 15, Franchise Times reported.

Paradigm, which operates 76 Hardee’s franchise restaurants in Alabama, Florida, Mississippi, and Tennessee, sued the franchisor, CKE affiliate Hardee’s Restaurants LLC, on April 14, according to Justia.com , and the Hardee’s franchisor agreed not to terminate the franchise agreements.

Fast-food burger chains closing locations:

• Wendy's closes 300 locations
• Jack in the Box closes 150-200 locations
• Hardee's franchisee closes 28 locations

Related: Popular furniture store brand closes down, no bankruptcy