Carl’s Jr. Franchisee to Close 10 California Locations, Sell 49 After Bankruptcy

A Carl’s Jr. franchisee in California, Harshad Dharod, plans to close 10 locations and sell 49 others after filing for bankruptcy protection in April 2026. The move affects 59 restaurants mostly in Southern California. Dharod blamed California’s $20 minimum wage increase and a lack of support and innovation from Carl’s Jr. for the financial strain. Despite generating over $6 million in monthly revenue, his outlets suffered losses exceeding $600,000 per month in 2026, leaving insufficient cash to cover wages, rent, and supplies. CKE Restaurants, parent company of Carl’s Jr., said the situation is specific to this franchisee’s circumstances and will not impact other locations. National Franchise Sales is managing the sale, with early interest from prospective buyers. The chain has faced broader challenges from inflation, price competition, and weak brand identity amid shifting consumer spending.