A popular fast-food burger chain is slated to close 10 more locations in California, with another dozen possibly being sold.
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Carl’s Jr. franchisee Harsbad Dharod has filed for Chapter 11 bankruptcy protection, according to the Daily Mail. Dharod’s company operates 59 restaurants across California, but he’s now looking to close 10 locations and sell off the rest.
The burger chain’s locations are mostly in Southern California. The franchisee’s subsidiary, Sun Gir Inc., pointed the finger at California’s $20-an-hour minimum wage for its financial woes. Court filings claim the wage hike “materially increased operating expenses,” while also blaming weak sales, poor marketing, and the parent company’s failure to innovate.
The franchise group has reportedly lost more than $600,000 per month this year, despite generating over $6 million in monthly revenue.
Carl’s Jr.’s parent company, CKE Restaurants, stated the crisis is specific to the franchisee and doesn’t impact the broader chain.
“This situation is specific to this individual franchisee’s financial and business circumstances,” the company explained. “This has no impact on the operations of any other Carl’s Jr. locations.”
Carl’s Jr. Began in Los Angeles Back in 1941…
These potential closures add another layer of char to the California-born chain’s already grilled reputation. The company, which started with a humble Los Angeles hot dog cart in 1941, grew into one of the West Coast’s most iconic fast-food brands, famous for its charbroiled burgers and that happy little star logo.
However, that happy little star seems to be dimming in its home state. According to the Daily Mail, franchise disclosure documents show Carl’s Jr. had 613 California locations in 2023, a number that shrank to 588 in 2025.
National Franchise Sales reports interest from potential buyers, raising hopes that many locations could remain open under new ownership. However, the future of these Carl’s Jr. restaurants is uncertain as the bankruptcy process continues.