Multiple companies owned by Harshad Dharod, CEO of Friendly Franchisees Corporation, the group behind those restaurants<\/a>, submitted filings late last week in the Golden State, Restaurant Business reports.<\/a> The entities include Sun Gir, Inc., Senior Classic Leasing, DFG Restaurants, Second Star Holdings and Third Star Investments, the outlet added.<\/p>\n Sun Gir, Inc. has asked the court to consolidate the cases into a single proceeding, a routine move when related businesses file at the same time, according to the outlet. Doing so allows the court to oversee the restructuring more efficiently, rather than handling each case separately.<\/p>\n Each entity reported less than $50,000 in both assets and liabilities, according to court documents obtained by Restaurant Business. <\/p>\n There are currently more than 1,000 Carl\u2019s Jr. locations across the U.S., with about 62 percent, or over 600, in California alone.<\/p>\n By filing for Chapter 11, the companies aim to restructure their debts while continuing to operate. The process gives the franchisee a chance to stabilize financially as it works through the bankruptcy under court supervision.<\/p>\n A spokesperson for Carl\u2019s Jr. said that the bankruptcy is isolated to this specific franchisee and does not reflect the overall health of the brand or its other locations.<\/p>\n \u201cWe are aware that Carl\u2019s Jr. franchisee Harshad Dharod entities and its affiliates, which together independently own and operate certain Carl\u2019s Jr. restaurants in California, have entered into a court-supervised restructuring process under Chapter 11 of the United States bankruptcy code,\u201d a representative told Restaurant Business. \u201cThis situation is specific to this individual\u2019s financial and business circumstances.\u201d<\/p>\n \u201cThis has no impact on the operations of any other Carl\u2019s Jr. locations and we remain committed to delivering quality experiences for our guests, while driving profitable, sustainable growth for our franchisees and the brand,\u201d the statement ended. <\/p>\n The Independent has contacted Carl\u2019s Jr. for comment. <\/p>\n The filings add to growing signs of strain among restaurant franchise operators, many of whom have been grappling with rising labor costs, higher food prices, and shifting consumer spending habits. <\/p>\n In California, the pressure is even greater due to a new law requiring fast-food workers to earn at least $20 an hour<\/a>. That higher wage has forced many operators to raise menu prices, making it harder to attract customers while still covering rising costs.<\/p>\n![\"More](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/04\/900x600-(7).png\")
More than 600 of Carl\u2019s Jr. 1000 locations are in California (Getty Images)<\/p>\n