Operator of 314 US Wendy’s locations files for bankruptcy protection

One of Wendy’s largest U.S. franchisees, Meritage Hospitality Group, has filed for bankruptcy protection after Wendy’s moved to terminate its franchise agreement. Meritage, which operates 314 Wendy’s restaurants across 15 states, said in a statement last week that it intends to continue operating its locations and paying its 9,000 employees throughout the bankruptcy process. The Grand Rapids, Michigan‑based company filed its petition in the U.S. Bankruptcy Court for the Western District of Michigan on Sept. 17, 2026. Wendy’s had issued a notice of termination effective immediately on Sept. 16, 2026. According to the filing, Wendy’s claims Meritage owes $27.4 million in royalties and fees and $119.5 million in continuing operations fees. Meritage closed 60 underperforming Wendy’s units last year as part of a restructuring effort. Asked for comment Monday on Meritage, Wendy’s said its focus is “strengthening the long‑term health of the brand.” Meritage responded, “We partner closely with franchisees that are experiencing challenges to support them and evaluate each concern on a case‑by‑case basis to identify the best and most sustainable way forward.” Wendy’s President and CEO Bob Wright remarked, “Wendy’s is an iconic brand with exceptional assets. Today we are clearly not performing at our potential,” in a statement issued last month. Wright joined Wendy’s in May after previously serving as CEO of Potbelly. Michigan remains Meritage’s biggest market, with 54 Wendy’s restaurants and five Morning Belle and Blue Porch Bar & Grill locations. The company also runs 44 Wendy’s in Georgia and Florida, 29 in Connecticut, 24 in Tennessee, 23 in Oklahoma and fewer than 20 each in Arkansas, Indiana, Massachusetts, Mississippi, Missouri, North Carolina, Ohio, Texas and Virginia. Dublin, Ohio‑based Wendy’s has been contending with outdated stores, rising beef prices and intense competition. It shuttered 240 restaurants in 2024 and earlier this year announced plans to close as many as 358 locations in 2026. Same‑store U.S. sales fell 7% in the most recent quarter.