A California-based franchise owner has announced the sale of 49 Carl’s Jr. Locations across Southern California, marking the largest single divestment in the fast-food chain’s regional history. The move, confirmed by industry sources and verified through regulatory filings, comes as the franchisee—identified as John S. Martin Jr., owner of Martin’s Food Group—prepares to exit the restaurant sector entirely, according to documents filed with the California Secretary of State’s office earlier this week.
The sale, which includes 38 Carl’s Jr. Restaurants and 11 Hardee’s locations under Martin’s Food Group’s portfolio, is being facilitated by CKE Restaurants, the parent company of Carl’s Jr. And Hardee’s. A spokesperson for CKE confirmed the transaction in a statement, noting that the divestment does not reflect broader performance issues within the chain but rather aligns with Martin’s strategic decision to focus on other business ventures. “This represents a private transaction between parties, and we respect the franchisee’s choice,” the spokesperson said, declining to disclose the purchase price or the identity of the buyer.
The sale underscores a broader trend of franchise consolidation in the Southern California fast-food market, where rising operational costs—including labor shortages, supply chain disruptions, and escalating real estate values—have pressured smaller operators. According to the National Restaurant Association, nearly 20% of independent franchise owners in the region have reported financial strain since 2022, with many opting to sell or close locations rather than absorb losses. Martin’s decision follows a pattern observed in other major chains, including McDonald’s and Wendy’s, where franchisees have increasingly sought to offload underperforming units amid economic uncertainty.
Industry analysts suggest the divestment may also signal shifting priorities for Martin, whose portfolio has historically included a mix of quick-service and casual dining concepts. While Martin’s Food Group has not disclosed its future plans, regulatory documents indicate the company is in the process of liquidating its remaining restaurant assets, with proceeds expected to be reinvested in unrelated sectors. The sale is subject to standard due diligence and regulatory approvals, with an anticipated closure of the transaction by mid-2024.
For employees at the affected locations, the news introduces an immediate period of uncertainty. Under California labor law, franchise transitions require a 90-day notice period for affected workers, though the new ownership has not yet been named. A spokesperson for the Service Employees International Union (SEIU) Local 2015, which represents fast-food workers in the region, stated that the union is monitoring the situation closely to ensure fair treatment of employees during the transition. “Workers deserve clarity and stability, especially when their livelihoods are at stake,” the spokesperson said. “We will be engaging with both parties to advocate for their rights.”
The divestment comes at a time when Carl’s Jr. Has been expanding its corporate-owned locations in California, a strategy that contrasts with the franchise model under which Martin operated. The chain’s parent company, CKE Restaurants, has increasingly favored direct ownership in high-traffic urban markets, citing greater control over brand standards and profitability. The shift has led to tensions between corporate and franchisee interests, with some industry observers questioning whether the move could accelerate further consolidations.
No further details have been provided on the long-term impact of the sale on Carl’s Jr.’s market presence in Southern California, though competitors and industry watchers will be closely tracking the transition. The company has not commented on whether the divestment will influence its future franchise expansion plans in the region.
