Major Wendy's Franchisee Files Chapter 11 Bankruptcy and Closes 60 Stores
Meritage Hospitality Group Inc., a major franchisee of Wendy’s with over 350 locations across 15 states, filed for Chapter 11 bankruptcy on September 17, 2026. The company listed $10 million to $50 million in assets and debts, with its largest creditor being franchisor Quality Is Our Recipe LLC, owed more than $24.9 million in deferred fees. Meritage had defaulted on franchise agreements earlier that year but managed to cure the default while continuing operations. As part of a prepetition restructuring led by Chief Restructuring Officer Kevin Cleary, Meritage closed approximately 60 Wendy’s locations and reduced operational expenses by $7.3 million. The company also faced a separate default notice from its lender, City National Bank, over alleged covenant violations but secured a forbearance agreement. This bankruptcy filing is part of broader financial struggles among fast-food franchisees in 2026, with several other operators including Hardee’s and Checkers Drive-In also seeking Chapter 11 protection to restructure debt.
Topics: Chapter 11 bankruptcy debt restructuring fast-food restaurant industry