Meritage Hospitality Group, one of the largest U.S. Wendy's franchisees operating 314 locations, filed for Chapter 11 bankruptcy after disputes with Wendy's corporate over termination of franchise rights and amid severe financial pressures from rising beef costs, weak traffic, and aggressive promotional discounting. The Michigan-based operator reported a $31.5 million net loss in 2025 and a 48% decline in store-level earnings, leading to closure of 60 underperforming locations and elimination of breakfast service at numerous sites.
Meritage Hospitality Group, a major Wendy's franchisee operating 314 locations, filed for Chapter 11 bankruptcy after closing 60 restaurants earlier this year. The filing follows Wendy's six consecutive quarters of declining same-store sales and rising operational costs, which have severely pressured franchisees' profitability.
Meritage Hospitality Group, a major Wendy's franchisee operating 314 locations, filed for Chapter 11 bankruptcy after closing 60 restaurants earlier this year. The filing follows six consecutive quarters of declining same-store sales at Wendy's and mounting costs, with Meritage's store-level earnings falling 48% last year. The company cited weak brand performance and financial pressures as reasons for seeking bankruptcy protection to restructure its balance sheet.