Major Carl’s Jr. Franchisee Plans to Close and Sell Dozens of California Locations A major Carl’s Jr. franchisee, Harshad Dharod’s Friendly Franchisees Corporation, is reportedly planning to close 10 restaurants and sell 49 others across California after filing for bankruptcy protection earlier this year. The company, which operates under the Anaheim-born fast-food chain, has faced mounting financial pressures, including rising operating costs and California’s $20-per-hour fast-food minimum wage. These factors, combined with other operational challenges, have led to the decision to restructure its business. According to the Los Angeles Times, Dharod’s company, which claims to be the largest California-based Carl’s Jr. franchisee, has acquired at least 65 locations since 2000. However, the business has struggled with significant losses. Bankruptcy filings indicate that Dharod’s restaurants generated over $6 million in monthly revenue in 2026 while losing more than $600,000 per month. The financial strain has been exacerbated by understaffing, workplace injuries, and violent encounters with customers, as reported by employees. Dharod has also criticized Carl’s Jr. for a lack of support and innovation, which he claims has contributed to the restaurants’ financial difficulties. The franchisee’s restructuring plan involves closing 10 locations and selling 49 others, marking a major shift in its operations. The company’s bankruptcy filing under Chapter 11 protection in April highlights the severity of its financial situation. A spokesperson for Carl’s Jr. previously told Restaurant Business that the restructuring is specific to Dharod’s operations and will not affect other Carl’s Jr. locations. The company stated, “We are aware that Carl’s Jr.#california #harshad_dharod #friendly_franchisees_corporation #carl_s_jr #chapter_11_bankruptcy
