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

As 2025 approaches, several restaurant chains are completing restructuring and turnaround strategies to strengthen operations and increase revenue and profits.

Jack in the Box is among the burger chains seeking to cut costs by closing restaurants. The fast-food chain launched its Jack on Track turnaround plan in April 2025, which requires the company to close 150-200 underperforming restaurants and close up to 120 restaurants by December 31, 2025.

The remaining underperforming restaurants will close as their franchise agreements are terminated.

Burger chain franchisor CKE Restaurant Holdings, which owns franchises for Hardee’s and Carl’s Jr restaurants, has been feuding with some franchisees as it attempts to collect revenue such as franchise fees, digital fees, advertising and rent.

CKE Restaurants operates more than 3,800 Hardee’s and Carl’s Jr. restaurants in 44 states and 43 countries.

CKE affiliate Hardee’s Dining LLC is suing ARC Burger LLC, a franchisee that owns 80 Hardee’s stores, alleging breach of contract and seeking to recover more than $6.5 million in unpaid franchise fees and other obligations, Law.com reported.

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

ARC Burger, facing expensive lawsuits and millions of dollars in debt owed to Hardee’s, closed about 28 of the chain’s restaurants as of Dec. 20, according to KXEO Radio Inc. in Mexico, Missouri. However, ARC has not yet filed for bankruptcy protection, which would trigger an automatic stay of proceedings.

Wendy’s, which operates about 6,000 stores in the U.S. and about 7,330 stores globally, said on its third-quarter 2025 earnings call that it would close “approximately a mid-single-digit percentage of U.S. restaurants,” with about 300 restaurants expected.

Wendy’s CEO Ken Cook said on an earnings call that the burger chain plans to close “restaurants that have been underperforming.”

Now, Wendy’s has closed a location that no longer makes sense as the giant burger chain permanently closed a restaurant in Stockton, Calif., where the lease was set to expire.

The Wendy’s franchisee who owns the 10512 Trinity Parkway location closed the restaurant in early December, removed the signage and boarded up the building, the Stockton Record reported. The building is adjacent to Starbucks and El Pollo Loco.

Wendy’s operates four other stores in Stockton that have not yet closed.

• 3810 E. Hammer Lane, Stockton

• 225 W. Hammer Lane, Stockton

• 4431 E. Waterloo Road, Stockton

• 2439 W. March Lane, Stockton

According to The Record, a Wendy’s spokesperson said: “The store’s lease has expired and the franchisee has decided not to renew. Our franchisees are committed to supporting their restaurant teams and affected employees will receive advance notice and information about job opportunities at other Wendy’s locations in the area.”

“We remain grateful for the support of the Stockton community and encourage guests to visit our other area restaurants as we remain committed to quality food and service,” the statement said.

Paradigm Investment Group, another Hardee’s franchisee, is also fighting CKE Restaurants after the parent company required franchisees’ restaurants to stay open after 2 p.m., pay digital fees and comply with loyalty program requirements, but the franchisees refused to enforce those requirements.

More closures:

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

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

• Wendy’s to close 300 stores

• Jack in the Box to close 150-200 stores

• Hardee’s franchisees close 28 stores

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This article was originally published by TheStreet on December 23, 2025, and first appeared in the Restaurant section. Click here to add TheStreet as your preferred source.