Hardee's franchisee sued by parent company over extended hours and digital services demands.

From Yahoo Finance: 2025-05-27 07:16:00

Paradigm Investment Group is suing CKE Restaurants, parent company of Hardee’s, over demands for extended hours and digital services that could lead to insolvency for Paradigm’s 76 Hardee’s locations.

CKE is threatening to terminate Paradigm’s franchise agreement for not implementing digital services and extending store hours, potentially forcing restaurant closures.

Paradigm has invested over $173m in its Hardee’s locations and paid $87m in royalties, now facing termination for not meeting CKE’s demands.

CEO Don Wollan criticizes Hardee’s “heavy-handed” tactics and potential precedent for unilateral changes by the franchisor.

The lawsuit questions the veracity of a statement made by Hardee’s to Midcap Financial Trust in 2022, suggesting potential misleading or fraudulent behavior.

Paradigm argues that additional fees and operational demands imposed by Hardee’s are financially burdensome, not transparently disclosed, and enforced unevenly on corporate-run stores.

The lawsuit also highlights the negative impact of leadership changes at Hardee’s since Roark Capital’s acquisition of CKE in 2013.

Wollan criticizes new CEOs at Hardee’s for risky decisions that harm franchisees and lead to years of recovery.



Read more at Yahoo Finance: Hardee’s franchise dispute escalates over operational demands