Major Carl’s Jr. Franchisee Files for Chapter 11, Putting 65 California Locations at Risk

Friendly Franchisees Corporation, a major Carl’s Jr. operator, files for Chapter 11 bankruptcy, citing California’s $20 minimum wage and brand-wide sales declines.

By: AXL Media

Published: Apr 8, 2026, 11:42 AM EDT

Source: The Street

Details of the Chapter 11 Filing

The bankruptcy petitions were filed on April 2, 2026, in the U.S. Bankruptcy Court for the Central District of California. Led by CEO and founder Harshad Dharod who has operated these locations since 2000 the group of affiliated debtors includes:

Sun Gir, Inc. (operating 59 Southern California locations)

Senior Classic Leasing, LLC

DFG Restaurants, Inc.

Second Star Holdings, LLC