Louisville, July 12, 2026, 09:12 EDT
Superior Star LLC’s Chapter 11 filing ended the week with a telling number: 94.6% of the Hardee’s operator’s 20 biggest unsecured claims tie back to seller financing, settlements, closed leases or rent, not basic trade payables. Most of the exposure sits with acquisition and property liabilities instead of unpaid regular vendors.
That’s important since Superior’s 59 stores make up roughly 4.0% of Hardee’s 1,485 U.S. locations set for 2025. If a lot of stores close, system sales and franchise fees get hit. Keeping units open or selling them to new owners would limit that impact.
Bondholders face another risk. Hardee’s Funding LLC and Carl’s Jr. Funding LLC have bonds tied to whole-business securitizations, with payments coming from franchise fees and other brand income. In April, KBRA analyst Yashasvi Chhikara led a review that affirmed five note classes, calling the “existing credit enhancement…sufficient”—citing reserves and structural buffers protecting investors. But that review relied on January data and came before Superior’s filing. KBRA
Superior, which is headquartered in Phoenix, filed for bankruptcy on July 9 in the U.S. Bankruptcy Court for the Western District of Kentucky under case number 26-31809. The company listed assets and liabilities each between $10 million and $50 million. Superior said it expects funds will be available for unsecured creditors. Chapter 11 allows for a court-led restructuring, putting most collections on hold while Superior works on a plan.
Superior picked up 93 Hardee’s locations across 10 states from Starcorp last year. Now it’s running 59, which is 36.6% fewer. Reports say at least 12 stores have closed. That doesn’t cover all of the difference. The $7.04 million seller note, the part of the price left for Superior to pay, is in dispute. Superior argues counterclaims could lower what it owes. Hardee’s said the bankruptcy was due to the franchisee’s “specific financial and business circumstances.” Nation’s Restaurant News
| Superior’s 20 biggest unsecured debts | Amount | Share |
|---|---|---|
| Starcorp seller note | $7.041 million | 78.2% |
| Settlements, lease exits and rent | $1.476 million | 16.4% |
| Food, payroll, credit cards, insurance, taxes and royalties/ads | $0.488 million | 5.4% |
| Total | $9.005 million | 100.0% |
Source: Superior’s creditor list as of July 9; claim totals and percentages based on reported amounts.
The seller note comes to roughly $119,000 per restaurant. Spending on food, payroll, business cards, insurance, sales tax, royalties and advertising adds up to $487,900, with $46,500 of that marked for royalties and advertising. The schedule only lists the 20 biggest unsecured claims, not all of Superior’s debt.
This is a different setup from ARC Burger, a Hardee’s franchisee that closed 77 stores and filed for Chapter 7 in April, showing over $29 million in liabilities. Hardee’s accused ARC of owing more than $6.5 million in fees. The brand has taken back and reopened more than 20 of those spots. Superior’s first filing reads more like an acquisition or lease restructuring. That could shift as more info comes.
Conditions for Hardee’s haven’t improved. In 2025, estimated sales per U.S. location came to $1.36 million. That’s 18% under Burger King, which is owned by Restaurant Brands International NYSE:QSR, 32% less than Wendy’s NASDAQ:WEN, and 66% lower than McDonald’s NYSE:MCD. The figure is just a rough scale comparison and not a formal average-unit-volume number.
| Chain | 2025 U.S. system sales | U.S. units | Sales per listed unit* |
|---|---|---|---|
| Hardee’s | $2.025 billion | 1,485 | $1.36 million |
| Burger King | $11.074 billion | 6,649 | $1.67 million |
| Wendy’s | $11.898 billion | 5,969 | $1.99 million |
| McDonald’s | $55.061 billion | 13,706 | $4.02 million |
System sales over listed year-end units—this isn’t the official average unit volume. Hardee’s numbers are up top; Technomic and Restaurant Business provided figures for the peers.
The sales gap has gotten worse as burger demand softens. U.S. limited-service burger chains grew sales 1.5% in 2025, but Hardee’s dropped 5%, according to Technomic. “2025 was a very, very weak year” for the Top 500 chains, Joe Pawlak, Technomic’s managing principal, said. Nearly half of those chains either didn’t expand or had to close locations. Nation’s Restaurant News
Burger chains split on Friday. Restaurant Brands ended up 0.4%. McDonald’s dropped 0.7%. Wendy’s dipped 0.4%. Traders didn’t react to a private franchisee bankruptcy as a group event, judging by the close.
The petition offers an early look and doesn’t show the full balance sheet. Asset and liability ranges are wide, there’s a dispute over the seller note, and as of Friday, the public docket held just four entries, mostly for procedure. There’s risk that if leases get rejected or more stores close, a fight over deal financing could become a royalty shortfall if locations drop out and aren’t replaced fast.
U.S. stock markets were closed Sunday. This week, June CPI lands Tuesday, producer prices on Wednesday, and June retail sales follow Thursday, all at 8:30 a.m. ET. May food-away-from-home prices ran 3.5% higher than a year ago while limited-service meals were up 3.3%. That’s tightening the window for weaker chains to hike prices without hurting traffic. To see where they stand, watch court filings on financing, leases, and store updates.
