Meritage Hospitality Group files for Chapter 11 bankruptcy

Meritage Hospitality Group Inc., a major Wendy's franchisee, has filed for Chapter 11 bankruptcy protection in the Western District of Michigan to restructure its debt and reorganize operations. The company, which operates over 350 restaurants across 15 states, including Wendy's and Bojangles locations, reported assets and liabilities estimated between $10 million and $50 million.

The filing follows significant financial distress, including a reported 48% drop in store earnings before interest, taxes, depreciation, and amortization in 2025. Meritage cited rising beef costs, increased discounting, and broader systemic pressures within the Wendy's brand as contributing factors. The company had previously closed approximately 60 Wendy's locations as part of a restructuring effort.

Financial complications also stemmed from legal and credit issues. Wendy's issued a notice of default in October 2025 regarding franchise obligations, and City National Bank issued a default notice in September 2025 concerning approximately $150 million in debt. Meritage intends to keep its restaurants operational throughout the restructuring process.