Meritage Hospitality, Wendy's Franchisee With 314 Locations, Files Chapter 11 Bankruptcy

Meritage Hospitality Group, one of Wendy's largest U.S. franchisees, filed for Chapter 11 bankruptcy protection on Sept. 17 in federal court in western Michigan after Wendy's moved to terminate its franchise agreement. The Grand Rapids, Michigan-based operator runs 314 Wendy's restaurants across 15 states and employs 9,000 workers, and said it will continue operating and paying employees through the process. Wendy's issued an immediate termination notice on Sept. 16, claiming Meritage owes $27.4 million in royalties and fees plus $119.5 million in continuous operations fees. Meritage closed 60 underperforming locations late last year. Wendy's (NASDAQ: WEN) said it evaluates franchisee challenges case-by-case to protect brand health. The Dublin, Ohio-based chain closed 240 restaurants in 2024, plans up to 358 closures this year, and reported a 7% drop in U.S. same-store sales last quarter.