Hardee’s Wants To Close Down 76 Restaurants for This Reason
Hardee's execs don't like something very specific about these locations.
Hardee’s executives are asking a New York franchisee that owns 76 locations to either shape up or close down.
According to The New York Post, the franchisee has filed a lawsuit against the parent company of the fast-food chain, claiming that the latter’s insistence that its eateries remain open past 2 p.m. could force them to close.
Paradigm Investment Group is accusing Hardee’s of using “heavy-handed” techniques to violate franchise agreements and take over lucrative outlets without cause.
The dispute centers on 76 Hardee’s restaurants in Alabama, Mississippi, Tennessee, and Florida, which would have to close if the company’s “franchise termination” attempt is successful.
Paradigm claims that, after spending more than $173 million on its restaurants and paying over $87 million in royalties, it is now facing termination for refusing to adopt digital services, such as online ordering, third-party delivery, and loyalty programs.
Additionally, many of the franchise’s outlets close by mid-afternoon, and the operator refuses to keep all of them open until 10 p.m. According to the fast-food giant, these behaviors are grounds for termination of the franchise agreement and a violation of system norms.
Paradigm claims that the demands made by the fast-food giant would force it into bankruptcy and ruin its profitability.
Hardee’s parent company, CKE Restaurants, is allegedly “acting in bad faith and threatening to steal a long-standing and well-performing franchisee’s investment,” according to the lawsuit filed by Paradigm, the operator of those 76 stores.
Hardee’s Recently Partnered With Thomas Rhett
While Paradigm continues to slog it out in court, Hardee’s is enjoying the fruits of its labor with its recent celebrity partnerships. In January, the fast-food chain teamed up with country singer Thomas Rhett to celebrate “the best in people” throughout the year.
In a year-long campaign, Rhett and Hardee’s will highlight projects that are based on principles that are very important to the company and the artist, such as helping their community, respecting family, recognizing first responders, and appreciating college football.
“We’re incredibly excited to partner with Thomas Rhett, as we work together to celebrate goodness in all the places we call home,” said Hardee’s VP of Brand Sarah Breymaier. “From our handcrafted menu to our commitment to serving communities in need, this partnership is all about giving back and spreading kindness — whether through serving up delicious meals or supporting important causes like veterans’ organizations and local communities.”
The father of four shared at the time, “We all aspire to bring goodness to what we do, whether at home with family, on the road with the band, or punching the clock at work. Hardee’s puts a lot of heart into their food and teams, and we want to show the power of goodness through this partnership, whether that’s by giving back to our communities or building connections through music and storytelling.”
