Wendy’s Franchisee Files for Bankruptcy Amid Ongoing Struggles

A major Wendy's franchisee files for bankruptcy as the chain faces financial challenges and store closures.

September 22, 2026 One Min Read

POLICY WIRE — Grand Rapids, United States — A leading Wendy’s franchisee has filed for bankruptcy protection after the restaurant chain sought to end its franchise agreement. Meritage Hospitality Group, which operates 314 Wendy’s locations across 15 states, announced its intention to continue running its restaurants and maintain employee payments during the process.

The company submitted its bankruptcy petition in federal court in western Michigan on September 17. According to court documents, Wendy’s issued a notice of termination of the franchise agreement “effective immediately” on September 16. The fast-food giant claims Meritage owes $27.4 million in royalties and fees and $119.5 million in continuous operations fees, according to filings.

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Meritage closed 60 underperforming Wendy’s locations last year as part of a restructuring effort. Wendy’s stated its focus is on strengthening the long-term health of the brand, while the company continues to operate its existing locations. The news comes as Wendy’s has been struggling with outdated stores, high beef prices, and fierce competition, leading to numerous store closures in recent years.

Reporting by Policy-Wire (PW)

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