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.