56-year-old burger chain franchise shutters store, no bankruptcy

As 2025 approaches, many restaurant chains are completing restructuring and turnaround strategies to strengthen their operations and generate increased revenue and profitability.

Jack in the Box is one of the burger chains looking 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 120 of its 150 underperforming restaurants by December 31, 2025.

The remaining underperforming restaurants will close after the franchise agreements expire.

Burger chain franchisor CKE Restaurant Holdings, which franchises Hardee’s and Carl’s Jr restaurants, is at loggerheads with some of its franchisees as it tries to collect revenue like franchise fees, digital fees, advertising fees, and rent.

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

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

The franchise had allegedly defaulted on various payments, including royalties, advertising fees and rent, which were due to begin in December 2024.

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

Wendy’s, which operates about 6,000 locations in the United States and 7,330 locations worldwide, said in its third-quarter 2025 earnings call that it will close “around a single-digit percentage of its U.S. restaurants,” which it estimates will be about 300 restaurants.

The burger chain plans to close “persistently underperforming restaurants,” Wendy’s CEO Ken Cook said on the earnings call.

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

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