A Hardee’s Philly Cheesesteak Angus Thickburger and the Philly Cheesesteak Breakfast Burrito are shown here. Nearly 80 Hardee’s locations closed at the end of 2025.
Hardee’s has long enjoyed a loyal fan base, especially for its popular breakfast menu. However, that loyalty was not enough to keep one major franchisee operating, bringing disappointing news to customers in at least eight states.
Reports show that 77 Hardee’s restaurants have closed across Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina, and Wyoming. The closures followed a lawsuit in which Hardee’s Restaurants accused franchisee ARC Burger of failing to stay current on required payments.
ARC Burger reportedly decided to shut down the locations in response to the legal action.
The lawsuit alleged that the franchisee began missing payments in December 2024. According to Hardee’s, the unpaid amounts included franchise royalties, technology and training fees, rent, taxes, and advertising contributions.
“These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales and our continued attempts over the course of many months to reach a resolution that would keep these restaurants open,” Hardee’s said in a statement to USA Today.
Hardee’s reportedly sought $6.5 million from ARC Burger, claiming that amount was owed under the franchise agreements.
While the locations were scheduled to close by the end of 2025, there may still be hope for dedicated customers. KCTV 5 reported that even though ARC Burger shut down the restaurants, Hardee’s could choose to reopen and operate some of the locations in the future.
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