The Fast Food Chain That Might Close 76 Restaurants This Year

In yet another case of franchisee versus parent company, fast food chain Hardee's is currently locked in a legal battle with a Nevada-based franchisee, called Paradigm Investment Group, and the real losers could be the patrons of 76 restaurants spread across the south. The eatery known for its big burgers and chicken offerings (though Hardee's' chicken sandwich did fall near the bottom of Food Republic's ranked list) is demanding Paradigm get into the 21st century and start offering online ordering (among other things), as well as adjust its business hours. Currently, the 76 stores in question are open no later than 2 p.m., eight hours shy of the 10 p.m. close-time Hardee's would prefer.

Paradigm, for its part, is claiming that these changes would make the franchisee go bankrupt. When Hardee's issued a notice which declared its intent to close all 76 stores if its demands were not met, Paradigm filed a lawsuit against the fast food chain (which its parent company, CKE Restaurants, has taken up) in April.

While 76 restaurants hang in the balance, it's also important to note that Paradigm Investment Group, with CEO Don Wollan at the helm, has brought in over $1.6 billion in sales in the last 24 years, employs over 1,500 people across the states of Florida, Mississippi, Tennessee, and especially Alabama, and has operated these restaurants for a quarter of a century. The lawsuit, which is seeking $35 million from Hardee's to compensate Paradigm for financial losses, alleges that the organization shouldn't have to comply with Hardee's new requirements because they weren't in the contract originally.

Additionally, details from the lawsuit reveal that the reason these Hardee's franchise locations close after 2 p.m. is because pretty much no one patronizes the restaurants after the lunch rush. Staying open, Paradigm argued, would end up costing the organization more money than it would bring in. Hardee's, which kicked off the fast food bacon craze in the 1990s, did end up backing off of its initial threat that it would close the 76 restaurants in question if its demands were not met, but depending on who wins this legal battle, the locations' futures are by no means secure.