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A significant Carl’s Jr. franchisee is planning to dump 59 places throughout California after submitting for chapter safety earlier this 12 months.
Harshad Dharod intends to shut 10 eating places and promote 49 others working underneath the Anaheim-born fast-food chain, in accordance to the Los Angeles Instances.
Dharod’s Pleasant Franchisees Company, which touts itself as the most important California-based Carl’s Jr. franchisee, has acquired a minimum of 65 places since 2000, in accordance with its web site.
Nevertheless, rising working prices and California’s $20-per-hour fast-food minimal wage have reportedly strained the enterprise, prompting the corporate to file for Chapter 11 chapter safety in April, the Instances reported.
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A buyer is seen leaving a Carl’s Jr. quick meals location on Aug. 16, 2023. (Xavi Lopez/SOPA Photographs/LightRocket / Getty Photographs)
Dharod additionally blamed what he described as an absence of help and innovation from Carl’s Jr. for the eating places’ monetary struggles, in accordance with the outlet.
Chapter filings reportedly present Dharod’s eating places generated greater than $6 million in month-to-month income whereas dropping greater than $600,000 monthly in 2026.
Understaffing, office accidents and violent encounters with clients additionally contributed to the eating places’ challenges, workers instructed the outlet.
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Carl’s Jr.’s brand seen on a Carl’s Jr. restaurant within the Mill Woods space of Edmonton, Alberta, Canada, on Might 28, 2025. (Artur Widak/NurPhoto / Getty Photographs)
A spokesperson for Carl’s Jr. beforehand instructed Restaurant Enterprise that the restructuring is restricted to Dharod’s operations and won’t have an effect on different Carl’s Jr. places.
“We’re conscious that Carl’s Jr. franchisee Harshad Dharod entities and its associates, which collectively independently personal and function sure Carl’s Jr. eating places in California, have entered right into a court-supervised restructuring course of underneath Chapter 11 of america chapter code,” an organization consultant stated in a press release.
“This example is restricted to this particular person’s monetary and enterprise circumstances.
Clients exit a Carl’s Jr. location in Madrid, Spain, on Oct. 24, 2023. (Xavi Lopez/SOPA Photographs/LightRocket / Getty Photographs)
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In keeping with brokerage agency Nationwide Franchise Gross sales, there’s already curiosity from potential patrons, the Instances reported.
If the places are offered, operations may proceed largely uninterrupted, as workers and managers usually stay in place when franchise possession modifications palms.
FOX Enterprise reached out to Carl’s Jr., Harshad Dharod and the Pleasant Franchisees Company for extra data.
