it's official: this is the famous chain that's closing nearly 100 locations in the U.S.

In the world of fast food, few chains are as well-known as McDonald's or Burger King. However, there are other brands that, although less prominent in the media, have a strong presence in the U.S. market. One of these chains has recently surprised many with an announcement that affects a significant number of its locations.

The chain is Hardee's, a brand with more than 60 years of history and a network that exceeds 1,800 restaurants (1,800) in the United States alone. Despite its international expansion and recognition, Hardee's has decided to close more than 75 locations in several regions of the country due to a conflict with one of its main franchisees.

The Conflict Between Hardee's and Its Historic Franchisee

Hardee's is part of the CKE group, which also owns Carl's Jr., with a business model and menu that are very similar, although they operate as two separate brands on different coasts of the country. The problem arises with Paradigm, one of the oldest franchisees with the largest number of locations. Paradigm operated 82 restaurants in states such as Alabama, Florida, and Mississippi, but the number has dropped to 76 due to recent closures, according to The Street.

This franchise has a long history, beginning its relationship in the late 1990s with the acquisition of 14 restaurants in Springfield, Illinois, and expanding throughout the southeast of the country. Paradigm was recognized with major awards, including the Wilbur Hardee Founder’s Award in 2009 and the title of "Best Franchisee" across the entire CKE network in 2010.

The Legal Dispute That Led to the Mass Closures

The situation changed drastically when Hardee's notified Paradigm of its intention to terminate the franchise agreement. The parent company argues that Paradigm failed to comply with the brand's loyalty program and did not respect the already established opening hours, among other alleged breaches. However, Paradigm replied with a lawsuit alleging that Hardee's had unilaterally modified the operations manual, imposing charges and technological requirements that were not agreed upon in the original contract.

Don Wollan, CEO of Paradigm, explained the situation in Franchise Times: "They were imposing things on us that weren't in the franchise contract. If you allow them to impose it, you set a precedent and there's no limit to what they can force you to pay in fees." In addition, Wollan accused Hardee's of acting in bad faith, harming its network of restaurants in several states.

This dispute has been decisive in Hardee's decision to close more than 75 locations, a measure that affects numerous employees and communities where these famous restaurants operated. The chain has stated on its website its commitment to quality and service, but the legal battle with Paradigm has marked a turning point in its strategy.

This internal crisis shows how relationships between franchisors and franchisees can significantly influence a brand's presence in the market. Hardee's, although still a giant in the fast food sector, now faces a major challenge that will change its outlook in the United States.