A beloved burger chain may close more stores—tension with a franchisee is heating up
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If you’ve got a soft spot for Hardee’s—those thick burgers, golden hash rounds, and old-school drive-thru vibes—you might want to brace yourself.
A nasty franchise feud is bubbling under the surface, and it could wipe dozens of restaurants off the map.
Hardee’s is in a bitter battle with one of its biggest franchisees, and the fallout could reshape fast food in the South.
This isn’t just corporate drama—it’s a crisis that could hit your neighborhood hard.
The controversy centers around Paradigm Investment Group, which runs 76 Hardee’s across Alabama, Florida, Mississippi, and Tennessee.
Hardee’s claims Paradigm repeatedly violated its franchise agreements, putting the future of every one of those restaurants in jeopardy.
At the core of the issue: skipped delivery partnerships like DoorDash, no loyalty rewards, and limited operating hours that reportedly ended as early as 2pm—shutting out dinner crowds.
It’s a long list of issues that could cost Paradigm millions.
The burger chain is demanding $13 million in damages, citing over $230,000 in unpaid technology fees and other violations.
Paradigm isn’t backing down—in fact, they’ve filed a lawsuit of their own.
CEO Don Wollan told Franchise Times, “They were ramming things down our throat which weren’t in the franchise agreement.”
He argues that these operational changes were essential to staying afloat in tough markets, not acts of defiance.
Read also: A major retail chain is shutting down—but there’s one final sale before the doors close
This isn’t just one franchisee in crisis—Hardee’s has been shrinking for years.
The brand has closed over 200 locations in the past decade, with 150 shutting down since 2021 alone.
Each store now brings in less than $1.2 million annually, falling far behind fast-food giants like McDonald’s or Wendy’s.
Another major Hardee’s operator, Summit Restaurant Holdings, recently filed for bankruptcy and shut down 39 out of its 108 locations.
Even fast-food leaders are feeling the pressure.
McDonald’s posted a 3.6% sales dip in Q1, while Burger King’s U.S. sales dropped 1.3% after its own franchisee, Consolidated Burger Holdings, filed for bankruptcy.
The whole industry is being hit by a storm of rising costs, shifting consumer habits, and fierce delivery wars.
For smaller franchisees like Paradigm, it’s become a high-stakes game just to break even.
Read also: Is your favorite diner closing? Denny's announces shocking plan to close 150 locations!
For Hardee’s, the future may hinge on this lawsuit.
If Paradigm loses, it could be stripped of all 76 locations—either shuttered entirely or taken over by someone else.
For loyal customers, that might mean saying goodbye to your regular biscuit run for good.
And for Hardee’s, the decision could mark a turning point in how it handles struggling operators moving forward.
This legal war highlights deeper cracks in the fast-food business.
With rising labor and food costs, lower foot traffic, and customers expecting delivery and rewards, franchise owners are being squeezed on every side.
Refusing to play along with loyalty programs or delivery apps might save money short-term—but risks losing relevance.
It’s a lose-lose unless chains find new ways to support their operators.
Read next: The good and the bad: Changes behind your favorite French fries and what you need to know!
Do you have memories from a favorite Hardee’s location? Has your local restaurant closed, or is it still serving up biscuits and burgers? What do you think franchise chains need to do to stay relevant and profitable? Share your thoughts in the comments—we’re all part of this fast-food story, whether we know it or not.
A nasty franchise feud is bubbling under the surface, and it could wipe dozens of restaurants off the map.
Hardee’s is in a bitter battle with one of its biggest franchisees, and the fallout could reshape fast food in the South.
This isn’t just corporate drama—it’s a crisis that could hit your neighborhood hard.
The controversy centers around Paradigm Investment Group, which runs 76 Hardee’s across Alabama, Florida, Mississippi, and Tennessee.
Hardee’s claims Paradigm repeatedly violated its franchise agreements, putting the future of every one of those restaurants in jeopardy.
At the core of the issue: skipped delivery partnerships like DoorDash, no loyalty rewards, and limited operating hours that reportedly ended as early as 2pm—shutting out dinner crowds.
It’s a long list of issues that could cost Paradigm millions.
National burger chain at risk of closing more locations after explosive fallout with major franchisee. Image source: Mashed / YouTube
The burger chain is demanding $13 million in damages, citing over $230,000 in unpaid technology fees and other violations.
Paradigm isn’t backing down—in fact, they’ve filed a lawsuit of their own.
CEO Don Wollan told Franchise Times, “They were ramming things down our throat which weren’t in the franchise agreement.”
He argues that these operational changes were essential to staying afloat in tough markets, not acts of defiance.
Read also: A major retail chain is shutting down—but there’s one final sale before the doors close
This isn’t just one franchisee in crisis—Hardee’s has been shrinking for years.
The brand has closed over 200 locations in the past decade, with 150 shutting down since 2021 alone.
Each store now brings in less than $1.2 million annually, falling far behind fast-food giants like McDonald’s or Wendy’s.
Another major Hardee’s operator, Summit Restaurant Holdings, recently filed for bankruptcy and shut down 39 out of its 108 locations.
Even fast-food leaders are feeling the pressure.
McDonald’s posted a 3.6% sales dip in Q1, while Burger King’s U.S. sales dropped 1.3% after its own franchisee, Consolidated Burger Holdings, filed for bankruptcy.
The whole industry is being hit by a storm of rising costs, shifting consumer habits, and fierce delivery wars.
For smaller franchisees like Paradigm, it’s become a high-stakes game just to break even.
Read also: Is your favorite diner closing? Denny's announces shocking plan to close 150 locations!
For Hardee’s, the future may hinge on this lawsuit.
If Paradigm loses, it could be stripped of all 76 locations—either shuttered entirely or taken over by someone else.
For loyal customers, that might mean saying goodbye to your regular biscuit run for good.
And for Hardee’s, the decision could mark a turning point in how it handles struggling operators moving forward.
This legal war highlights deeper cracks in the fast-food business.
With rising labor and food costs, lower foot traffic, and customers expecting delivery and rewards, franchise owners are being squeezed on every side.
Refusing to play along with loyalty programs or delivery apps might save money short-term—but risks losing relevance.
It’s a lose-lose unless chains find new ways to support their operators.
Read next: The good and the bad: Changes behind your favorite French fries and what you need to know!
