Wendy's Franchisee Files for Bankruptcy Amid Financial Struggles
Meritage Hospitality Group, a major Wendy’s franchisee operating 314 locations across 15 states, has filed for Chapter 11 bankruptcy. The company now owes $24.9 million in deferred franchise fees to Quality Is Our Recipe LLC, Wendy's franchise business, which is listed as its top unsecured creditor. The filing follows a challenging period for the fast-food chain and its franchisees. Wendy’s has seen same-store sales decline for six consecutive quarters, with its stock losing two-thirds of its value in three years. Meritage reported that store-level earnings dropped 48% in 2025 due to rising beef costs and increased discounting. Meritage plans to continue operating the restaurants during restructuring, including one Bojangles location and five independently branded sites. The company estimates assets and liabilities between $10 million and $50 million.
Topics: bankruptcy fast food franchising