Hardee’s Franchisee Files Chapter 11 as 59 Stores Face Closure Risk

Superior Star LLC, a Phoenix-based Hardee’s franchisee, filed for Chapter 11 bankruptcy protection on July 9, 2026, citing a $7.04 million dispute over a seller note tied to its 2023 acquisition. The filing puts 59 Hardee’s locations across 10 Midwestern states at immediate risk of closure. Superior Star had purchased 93 restaurants from Starcorp LLC in 2023 but has already closed about 12 locations since then, according to court documents and industry reports.

What triggered the bankruptcy filing

Superior Star acquired approximately 93 Hardee’s locations in 2023 for $15 million from Starcorp LLC, then spent an additional $4 million on operational improvements. Court filings reveal the restaurants were in far worse condition than expected. The company absorbed extensive deferred maintenance, unpaid taxes, and other hidden liabilities that drained cash flow. CEO Brian Bonfiglio stated in court documents that the company was forced to absorb “extensive and unforeseen deferred maintenance and repair expenses, unpaid taxes, and other latent liabilities” almost immediately after the acquisition.

The financing dispute and creditor claims

The core dispute centers on a $7.04 million seller note with Starcorp LLC that Superior Star claims is subject to setoff, meaning the operator believes it has claims against the seller for misrepresentations. Superior Star’s largest creditors include Starcorp, Lionsgate Investment owed over $184,000 in terminated leases, and McLane Company Inc. owed over $138,000 for food products. The company also accumulated more than $900,000 in settlement agreements with landlords and investors related to closed locations, which it intends to reject in bankruptcy court.

Financial strain and operational challenges

Superior Star’s 59 remaining restaurants generated approximately $80 million in gross revenue, yet the operator’s principals spent $2 million over the past 2.5 years to fund the franchisee, including $300,000 recently to cover payroll. The company fell behind on state sales taxes in some locations, triggering bank account levies that further reduced cash flow. Superior Star reported between $10 million and $50 million in both assets and liabilities. The company closed about 12 locations in 2025 and now faces the risk that restaurant franchisees are struggling with declining revenue and rising costs across the industry.

Broader franchisee crisis in fast food

Superior Star’s bankruptcy is not an isolated case. The fast-food franchisee sector faces mounting pressure as operating restaurants is less profitable today than in 2019, with fewer customers despite more technology and ordering channels. Franchisees have turned to emergency financing methods like merchant cash advances, often leading to bankruptcy. A Checkers Drive-In franchisee in Tampa also filed for Chapter 11 bankruptcy on July 14, listing $1.8 million in debts against $569,000 in assets. The franchisor Hardee’s, owned by CKE Restaurants Holdings, said it remains focused on strengthening the Hardee’s system, but the filing underscores the strain on its franchisee base.

Final Thoughts

Superior Star’s bankruptcy exposes the risks of restaurant acquisitions with hidden liabilities and the broader squeeze on franchisees. With 59 stores now at risk, investors and franchisees should monitor how bankruptcy courts resolve the seller dispute and whether other Hardee’s operators face similar pressures.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.