Hardee’s Franchisee Files for Chapter 11 Bankruptcy Amid Lender Dispute

A Phoenix-based Hardee’s restaurant franchisee, Superior Star LLC, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of Kentucky.

The move comes as a result of an alleged seller financing dispute worth millions of dollars between Superior Star and its lender, Starcorp LLC.

According to court papers, Superior Star, which operates 59 Hardee’s locations in the Midwestern states, listed $10 million to $50 million in assets and liabilities.

The debtor’s largest creditors include Starcorp LLC, owed $7.04 million in a disputed seller note subject to setoff; Lionsgate Investment, owed over $184,000 in terminated leases; Kosmides Family Trust, owed over $147,000 in a settlement; FJ Enterprises LLC, owed over $144,000 in a settlement agreement; McLane Company Inc., owed over $138,000 for food products; and MB2K LLC, owed over $123,000 in rent.

Superior Star purchased 93 Hardee’s locations in 10 states from Starcorp in 2023, but has since closed about 12 locations in 2025, according to Nation’s Restaurant News.

The company’s decision to file for Chapter 11 bankruptcy is reportedly based on its own specific financial and business circumstances.

Hardee’s, the franchisor, has released a statement saying, ‘We are aware that Hardee’s franchisee Superior Star, which independently owns and operates certain Hardee’s restaurants primarily in the Midwest region, has filed a voluntary petition for relief under Chapter 11 of the U.S. bankruptcy code.’

‘Superior Star’s decision to file is based on its own specific financial and business circumstances. We remain focused on continuing to strengthen the Hardee’s system and deliver quality experiences for our guests,’ Hardee’s added.

CKE Restaurants Holdings, the parent company of Hardee’s, has been in a battle with some of its franchisees as it tries to collect revenue, such as franchise fees, digital fees, advertising fees, and rent.

One such dispute led a franchisee to file for Chapter 7 bankruptcy liquidation, while another franchisee, Paradigm Investment Group, battled CKE Restaurants Holdings over the parent’s demands that the franchisee’s restaurants stay open past 2 p.m., pay digital fees, and adhere to loyalty program mandates.

CKE Restaurants operates over 3,800 Hardee’s and Carl’s Jr. restaurants across 44 states and 43 countries.

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This story was originally published by TheStreet on Jul 11, 2026, where it first appeared in the Restaurants section.