Wendy's Parent Company Disputes Conclude with Franchisee Bankruptcy Filing

Meritage Hospitality Group Inc., which operates 314 Wendy's restaurants across 15 states, filed for Chapter 11 bankruptcy protection in federal court in the Western District of Michigan on September 17, 2026. The filing followed a contractual dispute with Wendy's, which had issued a notice to cancel all franchise and occupancy rights to the locations operated by Meritage. Wendy's stated that the company had been owed $27.4 million in royalties and fees, along with $119.5 million in continuous operations fees.

The bankruptcy filing comes after Meritage reported that store-level earnings before interest, taxes, depreciation, and amortization had dropped by 48% in 2025 due to rising beef costs and heavy discounting. The successful restructuring of the bankruptcy could allow Meritage to close or transfer unprofitable locations while preserving viable restaurants.