Major Carl’s Jr. Franchisee to Shut Down and Sell 59 Locations Across California
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A significant shake-up is underway for Carl’s Jr. as a major franchisee, Harshad Dharod, plans to divest 59 locations across California. This decision follows the company’s filing for bankruptcy protection earlier this year.
Dharod intends to close 10 restaurants while selling off 49 others that operate under the iconic fast-food brand, as reported by the Los Angeles Times.
His company, Friendly Franchisees Corporation, claims to be the largest Carl’s Jr. franchisee in California, having acquired at least 65 locations since 2000, according to its official website. However, the business has faced mounting challenges, including rising operational costs and California’s $20-per-hour minimum wage for fast-food workers. These factors have reportedly strained the business, leading to the Chapter 11 bankruptcy filing in April, as highlighted by the Times.
PIZZA HUT TO CLOSE AROUND 250 LOCATIONS
A customer is seen leaving a Carl’s Jr. fast food location on Aug. 16, 2023. (Xavi Lopez/SOPA Images/LightRocket / Getty Images)
Dharod has also pointed to a perceived lack of support and innovation from Carl’s Jr. as contributing factors to the financial difficulties faced by his restaurants. Bankruptcy filings reveal that while Dharod’s locations generated over $6 million in monthly revenue, they were losing more than $600,000 each month in 2026.
Challenges such as understaffing, workplace injuries, and violent encounters with customers have further complicated the operational landscape, according to employee accounts shared with the outlet.
RED LOBSTER TO CLOSE TIMES SQUARE RESTAURANT AFTER MORE THAN 20 YEARS
Carl’s Jr.’s logo seen on a Carl’s Jr. restaurant in the Mill Woods area of Edmonton, Alberta, Canada, on May 28, 2025. (Artur Widak/NurPhoto / Getty Images)
A spokesperson for Carl’s Jr. previously informed Restaurant Business that this restructuring is specific to Dharod’s operations and will not impact other Carl’s Jr. locations. “We are aware that Carl’s Jr. franchisee Harshad Dharod and its affiliates, which independently own and operate certain Carl’s Jr. restaurants in California, have entered into a court-supervised restructuring process under Chapter 11 of the United States bankruptcy code,” a company representative stated.
“This situation is specific to this individual’s financial and business circumstances.”
Customers exit a Carl’s Jr. location in Madrid, Spain, on Oct. 24, 2023. (Xavi Lopez/SOPA Images/LightRocket / Getty Images)
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According to brokerage firm National Franchise Sales, there is already interest from prospective buyers for the locations. If the sale goes through, operations are likely to continue with minimal disruption, as employees and managers typically remain in place during franchise ownership transitions.
FOX Business has reached out to Carl’s Jr., Harshad Dharod, and the Friendly Franchisees Corporation for further details.
Check out what’s clicking on FoxBusiness.com.
A significant shake-up is underway for Carl’s Jr. as a major franchisee, Harshad Dharod, plans to divest 59 locations across California. This decision follows the company’s filing for bankruptcy protection earlier this year.
Dharod intends to close 10 restaurants while selling off 49 others that operate under the iconic fast-food brand, as reported by the Los Angeles Times.
His company, Friendly Franchisees Corporation, claims to be the largest Carl’s Jr. franchisee in California, having acquired at least 65 locations since 2000, according to its official website. However, the business has faced mounting challenges, including rising operational costs and California’s $20-per-hour minimum wage for fast-food workers. These factors have reportedly strained the business, leading to the Chapter 11 bankruptcy filing in April, as highlighted by the Times.
PIZZA HUT TO CLOSE AROUND 250 LOCATIONS
A customer is seen leaving a Carl’s Jr. fast food location on Aug. 16, 2023. (Xavi Lopez/SOPA Images/LightRocket / Getty Images)
Dharod has also pointed to a perceived lack of support and innovation from Carl’s Jr. as contributing factors to the financial difficulties faced by his restaurants. Bankruptcy filings reveal that while Dharod’s locations generated over $6 million in monthly revenue, they were losing more than $600,000 each month in 2026.
Challenges such as understaffing, workplace injuries, and violent encounters with customers have further complicated the operational landscape, according to employee accounts shared with the outlet.
RED LOBSTER TO CLOSE TIMES SQUARE RESTAURANT AFTER MORE THAN 20 YEARS
Carl’s Jr.’s logo seen on a Carl’s Jr. restaurant in the Mill Woods area of Edmonton, Alberta, Canada, on May 28, 2025. (Artur Widak/NurPhoto / Getty Images)
A spokesperson for Carl’s Jr. previously informed Restaurant Business that this restructuring is specific to Dharod’s operations and will not impact other Carl’s Jr. locations. “We are aware that Carl’s Jr. franchisee Harshad Dharod and its affiliates, which independently own and operate certain Carl’s Jr. restaurants in California, have entered into a court-supervised restructuring process under Chapter 11 of the United States bankruptcy code,” a company representative stated.
“This situation is specific to this individual’s financial and business circumstances.”
Customers exit a Carl’s Jr. location in Madrid, Spain, on Oct. 24, 2023. (Xavi Lopez/SOPA Images/LightRocket / Getty Images)
CLICK HERE TO GET FOX BUSINESS ON THE GO
According to brokerage firm National Franchise Sales, there is already interest from prospective buyers for the locations. If the sale goes through, operations are likely to continue with minimal disruption, as employees and managers typically remain in place during franchise ownership transitions.
FOX Business has reached out to Carl’s Jr., Harshad Dharod, and the Friendly Franchisees Corporation for further details.
