Fast-Food Chain Operator With 65 Locations Files for Bankruptcy

The restaurant business can be a difficult one, and it's a regular occurrence to see both individual restaurants and chains to go bankrupt.

Now, a large fast-food operator has filed for Chapter 11 bankruptcy.

According to Tuesday, April 7 report from Restaurant Dive, Friendly Franchisees Corporation is asking for financial protection in the state of California. Friendly Franchisees is a large operator of Carl's Jr. locations and handles 65 such restaurants in California, but according to its website, it's also involved in the real estate business. The company's CEO and founder Harshad Dharod acquired the 65 Carl's Jr. locations back in 2000.

According to Restaurant Dive, the company filed for bankruptcy under a variety of subsidiaries, including Senior Classic Leasing, DFG Restaurants and Second Star Holdings.

Fast-Food Restaurant Chain Has More Than 1,000 Locations Around the U.S.

A spokesperson for Carl's Jr. says he doesn't believe there will be any impact on the majority of the more than 1,000 Carl's Jr. locations around the U.S.

"Founded in 1941, Carl's Jr. has been a West Coast favorite for over 80 years, known for our iconic charbroiled burgers," Carl's Jr.'s website states of the company. "Today, we have more than 1,000 locations across the U.S. and serves 28 countries worldwide."

Carl's Jr. is related to Hardee's, which is more based in the Midwest, and is known for its "Angus Thickburgers," with the company describing the item as, "Fire seems like nothing special. But when it hits our premium third pound 100% angus beef, it transforms it into a juicy charbroiled burger as good as Carl Karcher intended."

It's not just Carl's Jr., either. Fast-food restaurants have taken a hit in 2025 and 2026, with Wendy's, Jack in the Box and Papa Johns chains all announcing the closures of locations.

"As we head into April, a handful of major restaurant brands are closing locations or, in some cases, disappearing entirely," Delish notes in an April 2026 feature. "What might seem like random, one-off closures is starting to feel like something bigger: a reset happening across the industry in real time."

So, it's certainly sad to hear about yet another major fast-food chain downsizing. But, it may just be the reset it needs to take its business to the next level.