Meritage Hospitality Group files for Chapter 11 bankruptcy

Meritage Hospitality Group, one of the largest Wendy’s franchisees in the United States, has filed for Chapter 11 bankruptcy protection. The Grand Rapids, Michigan-based company operates 314 Wendy’s restaurants across 15 states. The filing follows an attempt by Wendy’s to terminate Meritage’s franchise agreement, effective immediately, citing claims that the operator owes approximately $27.4 million in royalties and fees, along with $119.5 million in continuous operations fees.

Meritage cited several financial pressures contributing to the filing, including a 48% drop in store-level earnings in 2025, rising beef costs, and increased discounting. The company also noted system-wide headwinds affecting the broader Wendy’s brand. Despite the bankruptcy, Meritage intends to keep its restaurants operating and continue paying its approximately 9,000 employees during the restructuring process.

The situation highlights broader economic strains within the fast-food industry, including rising labor and food supply costs. Additionally, Wendy’s has been navigating strategic shifts, such as scaling back breakfast services at certain locations to improve operational efficiency and profitability.