McDonald’s rival franchisee files Chapter 11, 65 restaurants at risk
April 7, 2026

A key Burger King and McDonald’s rival, Carl’s Jr., finds itself in a similar position as one of its largest franchise operators has filed for Chapter 11 bankruptcy protection.

Filings are not limited to franchise operators.

“Restaurants that exist today may not exist in five years. They’ll be off the map,” bankruptcy attorney Daniel Gielchinsky told Fox Business. “Additionally, consumers will see a lot of restaurants with a decreased footprint.”

Rising costs and declining demand have hurt restaurant operators. Labor, food, and rent have all been climbing.

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