59-Unit Hardee’s Franchisee Declares Bankruptcy

Superior Star, which operates 59 Hardee’s restaurants across 10 states, filed for Chapter 11 protection on July 9 in the U.S. Bankruptcy Court for the Western District of Kentucky, saying it intends to reorganize and continue operating its restaurants. The company generated approximately $80 million in gross revenue in 2025, according to court filings.

In a declaration filed with the court, CEO Brian Bonfiglio said the company believes a financial restructuring will allow it to continue operating and preserve the business.

The filing traces many of Superior Star’s financial struggles to its 2023 acquisition of the restaurant portfolio from fellow franchisee Starcorp. The company said it paid approximately $13 million for the restaurants, and its principals later contributed another $6 million—including a recent $300,000 infusion to ensure employees were paid before the bankruptcy filing.

According to court documents, Superior Star soon discovered millions of dollars in deferred maintenance, repair costs, unpaid taxes, and other liabilities that it says were not disclosed before the acquisition. The filing also cites aging restaurant facilities that hurt customer demand, along with higher food costs that compressed margins.

The company previously closed several underperforming restaurants to reduce expenses but continued paying rent on some shuttered locations under agreements with landlords and the franchisor, creating substantial “dark site” costs. The company had 93 restaurants in 11 states in January 2024.

Superior Star also fell behind on sales tax payments in several states, resulting in tax authorities levying its bank accounts. Those tax levies were the immediate catalyst for seeking bankruptcy protection.

The bankruptcy filing estimates assets and liabilities between $10 million and $50 million.

Among the largest unsecured claims is a disputed $7.04 million seller note owed to Starcorp. Other major obligations include McLane Foodservice, royalty payments, landlords, and various settlement agreements.

“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,” a Hardee’s spokesperson said in a statement.

In 2023, Summit Restaurant Holdings, then one of the chain’s largest operators, filed for Chapter 11 after citing declining traffic, inflation, rising labor costs, and mounting debt. Earlier this year, ARC Burger, a 77-unit Hardee’s franchisee, filed for Chapter 7 liquidation following a legal dispute with Hardee’s over unpaid royalties and other obligations.