California Carl’s Jr. Franchisee Files for Bankruptcy, Plans Store Closures
A franchise operator running 59 Carl’s Jr. locations in California filed for Chapter 11 protection in April. The group intends to close 10 restaurants and sell the remainder.
finance.yahoo.comA California franchise operator running 59 Carl’s Jr. restaurants filed for Chapter 11 bankruptcy protection in April and now seeks buyers for most of its stores. The operator plans to close 10 locations outright while marketing the remaining restaurants for sale, according to brokerage firm National Franchise Sales. The restaurants are concentrated in Southern California.
Court filings stated that California’s $20-an-hour fast-food minimum wage materially increased operating expenses. The filings also cited weaker sales, reduced marketing effectiveness, and a lack of innovation from the parent company. Despite generating more than $6 million in monthly revenue, the franchise group has reportedly been losing more than $600,000 per month this year.
Restaurants, the parent company of Carl’s Jr., said the situation is specific to this franchisee’s financial and business circumstances and has no impact on other locations.
Jr. traces its roots to 1941, when founder Carl Karcher launched a hot dog cart in Los Angeles. The chain grew into a West Coast fast-food brand known for charbroiled burgers. Franchise disclosure documents show the chain had 613 California locations in 2023 and 588 in 2025. National Franchise Sales said interest from potential buyers has already emerged.
