Struggling Carls Jr. franchisee plans to close 10 and sell 49 California locations
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A Carl’s Jr.franchisee is trying to close and sell his 59 locations in California after filing for bankruptcy protection in April.
The franchisee, Harshad Dharod, who has branches mostly in Southern California, intends to close 10 of the branches he controls and find a buyer for the remainder, according to a broker helping find buyers.In earlier bankruptcy filings, Dharod had blamed California and Carl’s Jr.
for his stores’ struggles.Dharod said a lack of support and innovation from Carl’s Jr.
and an increase in labor costs from a $20 minimum wage left him unable to cover his expenses.Dharod couldn’t be reached for comment.
Business Will Carl’s Jr.rebound to its former glory in its birthplace as a flagbearer for Californian burger culture or recede into irrelevance?A spokesperson for Carl’s Jr.
and its parent company CKE Restaurants, said they are aware of Dharod’s decision to sell.“This situation is specific to this individual franchisee’s financial and business circumstances,” said the spokesperson.
“This has no impact on the operations of any other Carl’s Jr.locations.” National Franchise Sales will oversee the sale, which spans Southern and Northern California.
A spokesperson for the broker said it already has interest from prospective buyers.The spokesperson said that when a franchise changes owners, employees and managers usually keep their jobs.
Obituaries Carl Karcher, who parlayed a single hot dog pushcart into a chain of more than 1,000 fast-food restaurants bearing his name, died Friday.Carl’s Jr.
began in 1941 as a hot dog cart on the corner of Florence and Central in Los Angeles and grew into one of the region’s best-known burger chains.It opened its first sit-down restaurants with expanded menus in Anaheim in 1946.
Its smiling yellow star was born in the 1950s and rapidly spread across California throughout the 1970s.Althou...