It’s a tough time to own fast-food restaurants.
Franchisees for popular chains such as Applebee’s, Subway, and Popeyes Louisiana Kitchen have filed for bankruptcy recently, and another has joined them.
Multiple entities associated with Friendly Franchisees Corporation (FFC), owner of 65 Carl’s Jr. locations across California, have filed for Chapter 11 bankruptcy, Restaurant Business first reported.
Carl’s Jr. was founded almost 85 years ago and is known for its charbroiled burgers.
FFC has yet to state whether any Carl’s Jr. locations will close as a result of the bankruptcies. Its founder, Harshad Dharod, owns the five associated entities that filed for bankruptcy in U.S. District Court for the Central District of California, including Sun Gir, DFG Restaurants, and Second Star Holdings.
Fast Company has reached out to FFC and Dharod for comment and will update this story if we hear back.
In each case, the entities have assets and liabilities worth less than $50,000.
