Story perspectives

California Carl’s Jr. Franchisee Files Chapter 11 Over $20 Minimum Wage

5/21/2026

Summary

Story summary

Sun Gir Incorporated, the California Carl’s Jr. franchisee, filed Chapter 11 bankruptcy because of the state’s new $20-hour minimum wage.
The petition asks the court to reject leases for three Carl’s Jr. sites at Ventura Boulevard in Tarzana, Duarte Road in Arcadia, and Azusa Avenue in Covina.
The worst-affected store, which posted a $403,003 loss between April 2024 and March 2026, was said by a Carl’s Jr. spokesperson to involve only this franchisee.

History

Historical Context

In 2016 Governor Jerry Brown signed a law raising California’s minimum wage to $10, a step that reached $15 by 2022. The 2023 AB 1228 amendment raised the fast-food floor to $20 per hour on April 1 2024; a Pepperdine University study links that increase to about 23,000 fast-food jobs lost. Sun Gir Incorporated now cites the $20 wage as the cause of its Chapter 11 filing.

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Story summary

Sun Gir Incorporated, the California Carl’s Jr. franchisee, filed Chapter 11 bankruptcy because of the state’s new $20-hour minimum wage.
The petition asks the court to reject leases for three Carl’s Jr. sites at Ventura Boulevard in Tarzana, Duarte Road in Arcadia, and Azusa Avenue in Covina.
The worst-affected store, which posted a $403,003 loss between April 2024 and March 2026, was said by a Carl’s Jr. spokesperson to involve only this franchisee.

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