Popular burger chain franchisee files for bankruptcy, putting dozens of Midwest restaurants at risk 

Financial challenges continue to pressure restaurant operators across the country, and another major franchisee has now turned to bankruptcy protection. On July 9, 2026, one of the largest operators of Hardee’s restaurants filed for Chapter 11 bankruptcy, underscoring the financial strain facing many franchisees.

Hardee’s franchisee seeks Chapter 11 protection

Superior Star LLC, one of the largest Hardee’s franchisees in the Midwest, filed for Chapter 11 bankruptcy protection on July 9, 2026. The Phoenix-based company currently operates 59 Hardee’s restaurants after previously owning 93 locations across 12 Midwestern states.

According to court filings, the company reported between $10 million and $50 million in both assets and liabilities. The bankruptcy filing follows an apparent dispute tied to seller financing from Superior Star’s 2023 acquisition of dozens of Hardee’s restaurants. Company records also show the franchisee owes millions of dollars to the seller involved in that transaction.

Second major Hardee’s franchisee bankruptcy this year

The filing marks the second major Hardee’s franchisee bankruptcy in 2026. In April, another large operator, ARC Burger LLC, filed for Chapter 7 bankruptcy after closing 77 Hardee’s restaurants across multiple states.

Despite the latest filing, Hardee’s parent company emphasized that the bankruptcy involves an independent franchise operator rather than the restaurant chain itself (as is often the case for bigger chains). The company said Superior Star’s decision reflects its own financial and business circumstances and reaffirmed its commitment to supporting the Hardee’s brand.

What it means for customers

While the bankruptcy places Superior Star’s restaurants under court protection as the company reorganizes, it does not automatically mean all 59 locations will close. Chapter 11 allows businesses to continue operating while restructuring their finances, although some restaurant closures or sales remain possible as the case moves forward.

The filing highlights the ongoing financial strain facing many restaurant franchisees as higher operating costs, debt obligations, and softer consumer spending continue to challenge the industry.

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