Iconic burger chain Carl's Jr. is under increasing financial pressure from both California's cost of doing business, $20 minimum wage rules and public safety issues that employees allege are spilling into the workplace. Carl’s Jr. has 588 units in California as of 2025, but that number declined by 4% from 2023, when it had 613 units in the state, according to internal franchise documents. Last month, a major franchisee filed for bankruptcy, affecting 11% of operations across the state.