Despite its success when it comes to marketing—who can forget the iconic Paris Hilton commercial, or more recently, the Alix Earle promo spot—one of Carl’s Jr.’s biggest franchisees has filed for bankruptcy.
As Delish reports, Friendly Franchisees Corporation, the operator of sixty-five Carl’s Jr. locations, recently filed for Chapter 11 protection, putting all those restaurants at serious risk of closing. The filing follows a pattern we’ve been seeing across the fast-food industry, where several major franchise operators have succumbed to similar financial strain. Popeyes recently saw its largest franchisee declare bankruptcy and subsequently close 20 locations.
Still, Carl’s Jr. is quick to assure fans of the fast food chain not to expect this setback to affect the brand in the long run. “This situation is specific to this individual franchisee’s financial and business circumstances,” a spokesperson explained to Restaurant Dive. “This has no impact on the operations of any other Carl’s Jr. locations, and we remain committed to delivering quality experiences for our guests, while driving profitable, sustainable growth for our franchisees and brand.”
The locations operated by Friendly Franchisees Corporation are all in California, where it is the company’s largest franchisee. Carl’s Jr. currently has more than 1,000 locations across the United States, including more than 500 in California alone. So while this definitely will affect Carl’s Jr. lovers along the Pacific Coast, the bankruptcy is unlikely to have much impact on customers elsewhere.
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