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Hardee’s Closes 77 Locations in 8 States (But It's Not All Bad News)

Here's what these shutdowns mean for Hardee's diners across eight affected states.

By Amanda Machado , Edited by Calista Headrick

Updated Sept. 4, 2026

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Hardee's is a familiar roadside stop for biscuits at sunrise and burgers on the drive home. But for many communities, that yellow star went dark almost overnight. In December 2025, 77 Hardee's locations tied to a single franchisee shut their doors at once, costing roughly 1,600 people their jobs days before Christmas and wiping the chain off the map in parts of eight states. Since then, Hardee's corporate has been quietly bringing some of them back.

For shoppers looking to stretch their fast food budget and plan meals more carefully, these changes show just how quickly local dining options can shift and how they can affect your finances.

Read on to see which states lost locations, and what's happened since.

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Why Hardee's locations closed

The closures stem from a dispute between Hardee's corporate and a major franchisee known as ARC Burger. Court filings and company statements indicate the operator fell behind on required payments, including royalties and other contractual fees. When those issues weren't resolved, Hardee's confirmed it would terminate the franchised locations.

Hardee's terminated ARC Burger's franchise agreement in September 2025 but let the operator keep running the restaurants while a sale was explored. When no deal came together, Hardee's sued in November 2025, seeking roughly $6.5 million in unpaid royalties, rent, and advertising fees it said had been accruing since December 2024. ARC Burger responded by closing all 77 of its locations in December rather than continuing to operate them, triggering a coordinated shutdown across multiple regions instead of a slow, store-by-store wind-down.

One note on the count: Hardee's told USA TODAY the closures spanned eight states, while court filings list nine, including Kansas.

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The role ARC Burger played in the shutdowns

ARC Burger wasn't a small local operator. It built a multi-state network of Hardee's restaurants, many in smaller towns and along highways where brand recognition mattered. For years, these locations served as community staples for breakfast meetings and quick family meals.

Because ARC Burger controlled all of its restaurants within some of the affected states, the closure decision had an outsized impact. Entire local markets lost their Hardee's presence in a single move. In a handful of those markets, Hardee's corporate has since stepped in directly to reopen the restaurants itself rather than hand them to another franchisee.

How many Hardee's locations were affected and why it matters

While 77 restaurants may sound modest in a national chain's footprint, the concentration is what makes this a big deal. These weren't scattered, isolated closures. They were clustered across eight states, meaning some counties and small towns lost their only Hardee's overnight.

For customers, that can mean longer drives for familiar menu items or higher prices at limited alternatives. For employees, the toll was immediate: court documents put the job losses at roughly 1,600, all landing in the week before Christmas. The ripple effect touched local suppliers, landlords, and nearby businesses that benefited from shared foot traffic.

So, which states were affected? Here are the eight where ARC Burger locations closed at the end of 2025.

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1. Alabama

Court documents list Alabama among the eight states where ARC Burger owned and operated Hardee's restaurants that were closed by the end of 2025.

According to Hardee's Restaurants, the Alabama closures followed ARC Burger's failure to cure defaults under franchise and sublease agreements, including missed royalty and advertising payments.

2. Florida

Florida was identified by USA TODAY as one of the states where ARC Burger-owned locations were shut down as part of the 77-store exit. The lawsuit filed by Hardee's states that ARC Burger owned and operated Hardee's locations in Florida and failed to meet ongoing financial and contractual obligations.

Hardee's confirmed via email to USA TODAY that all franchised restaurants operated by ARC Burger in Florida and the other affected states would close following the dispute.

3. Georgia

Georgia is also listed among the eight states where ARC Burger operated Hardee's restaurants that were closed at the end of 2025. Legal filings cited in national reporting state that ARC Burger owned 77 locations across these states, including Georgia.

Georgia has also seen the most reopening activity. Fast Company identified five former ARC locations now under Hardee's corporate ownership and hiring: Thomaston, Rome, Danielsville, Franklin, and East Ellijay.

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4. Illinois

In southern Illinois, at least three Hardee's locations were reported to have closed abruptly in early December 2025, according to local news reports.

Local news confirmed that other Hardee's in nearby towns, such as Herrin, Murphysboro, and Harrisburg, remained open at that time, showing that not every location in the region closed simultaneously.

5. Missouri

Missouri was explicitly named in filings and reporting as one of the states affected by the ARC Burger shutdown of 77 Hardee's restaurants.

A local news summary noted that around 28 stores in the Midwest, including many in Missouri, were closing on the same day in December 2025 due to a legal dispute between Hardee's and the franchisee.

Missouri is one of three states where Hardee's has confirmed reopenings. The former ARC location in Cuba is back under corporate ownership, and the company has said additional Missouri sites are part of its reopening plan.

6. Montana

In Montana, local reporting confirms that a Hardee's restaurant in Helena has closed permanently. Signs at the Lundy Center location on the west side of Helena indicated the site is no longer operating, and staff were seen cleaning out the building as of late 2025.

Officials told MTN that the closure was initiated by the franchise owner, ARC Burger, and that the restaurant's lease was scheduled to expire at the end of the year as part of the broader shutdown of restaurants operated by that franchisee.

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7. South Carolina

South Carolina lost eight ARC Burger-operated locations: Charleston, Goose Creek, Summerville, Moncks Corner, St. George, Georgetown, Walterboro, and Hampton. The Post and Courier reported that a Hardee's in Ravenel, run by a different operator, stayed open throughout.

South Carolina has also had the most complete recovery of any affected state. Six of the eight have reopened as corporate-run restaurants, according to the chain. The two that haven't are the Savannah Highway location in Charleston, which closed permanently in December, and the longtime Georgetown store.

8. Wyoming

Wyoming was also listed as one of the eight states where ARC Burger operated Hardee's restaurants. Wyoming has had no operating Hardee's since the December 2025 closures. The final two locations were in Buffalo and Gillette, and Hardee's own locator still lists the Gillette store as temporarily closed.

What happened next: bankruptcy and a corporate comeback

ARC Burger filed for Chapter 7 bankruptcy on April 20, 2026, reporting more than $29 million in liabilities, including unpaid taxes and wages. The filing paused Hardee's lawsuit and ended the fight.

But Hardee's moved to take the restaurants back itself. A company spokesperson confirmed in April 2026 that 15 locations had reopened in the Georgia, Missouri, and South Carolina markets as corporate-run restaurants, part of a plan to resume operations at more than 40 of the closed sites. Elsewhere, the picture hasn't changed: no reopenings have been confirmed in Alabama, Florida, Illinois, Montana, or Wyoming, and Hardee's own locator still lists the Gillette, Wyoming, store as temporarily closed.

What Hardee's is known for and what customers may miss

Hardee's built its reputation on made-from-scratch biscuits, hearty breakfast platters, and a menu that feels more "diner-inspired" than typical fast food. For older diners in particular, that combination of comfort and value has been a draw.

Customers may miss the consistency and familiarity, especially in towns where alternatives are limited. While competitors offer similar items, brand loyalty often comes from years of routine, not just menu options.

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Bottom line

The collapse of 77 Hardee's locations shows how quickly a franchise dispute can reshape local dining options, and how uneven the recovery can be. Some towns got their Hardee's back within months. Others are still waiting, and may not get one at all. For customers, it's a reminder to stay flexible and check before you drive.

If you're rethinking where to spend your food dollars, this might be a good moment to focus on ways to stretch your grocery budget at home, giving you more control over costs as restaurant choices change suddenly in your area.

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