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Carl’s Jr. Franchisee Files for Bankruptcy Amid Sales Decline

4/11/2026

Summary

Story summary

Friendly Franchisees Corporation, which operates 65 Carl’s Jr. locations in California, filed for Chapter 11 bankruptcy on April 2, 2026.
CEO Harshad Dharod's companies, including Sun Gir, Inc., reported minimal assets and liabilities.
The bankruptcy filing aims to restructure debts while maintaining operations.
A $20 minimum wage law has pressured operators to raise prices, hurting sales.
Last year, Carl’s Jr. and Hardee’s posted a 6% drop in U.S. sales.

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Story summary

Friendly Franchisees Corporation, which operates 65 Carl’s Jr. locations in California, filed for Chapter 11 bankruptcy on April 2, 2026.
CEO Harshad Dharod's companies, including Sun Gir, Inc., reported minimal assets and liabilities.
The bankruptcy filing aims to restructure debts while maintaining operations.
A $20 minimum wage law has pressured operators to raise prices, hurting sales.
Last year, Carl’s Jr. and Hardee’s posted a 6% drop in U.S. sales.