Major Wendy’s Franchisee Files Chapter 11 Bankruptcy

Meritage Hospitality Group filed for Chapter 11 on Thursday, Sept. 17, 2026, in the U.S. Bankruptcy Court for the Western District of Michigan. It runs 314 Wendy's restaurants in 15 states—about 5% of Wendy's U.S. system—plus one Bojangles and five independent stores, with about 9,000 employees. The company said restaurants stay open and wages and benefits continue. Assets and liabilities are each estimated at $10 million to $50 million. Quality Is Our Recipe LLC, Wendy's franchise business, is top unsecured creditor at $24.9 million for deferred franchise fees. Meritage said Wendy's system-wide pressures significantly affected its finances. A May report from CEO Bob Schermer Jr. put store-level margins at a 30-year low and store-level EBITDA down 48% in 2025. Meritage closed about 60 underperforming Wendy's sites, altered or ended breakfast at about 120 others, resumed full interest payments in Q2 after forbearance, and fully rolled out EzCater catering in May after a March test. CNBC reports six straight quarters of Wendy's same-store sales declines and a two-thirds stock drop over three years; RestaurantDive cites double-digit declines over recent quarters. After more than a year working with lenders and its franchisor, the board said voluntary court-supervised restructuring is the most effective path to strengthen finances and protect stakeholders, team members, guests, and communities.