Major Wendy’s Franchise Operator Files Bankruptcy, Threatening Dozens More Closures
Wendy’s is facing another wave of restaurant closures as one of its largest franchise operators fights through bankruptcy.
Meritage Hospitality Group filed for Chapter 11 bankruptcy protection on September 17. Since then, the company has already closed 33 Wendy’s restaurants. It could shut down dozens more by November 13, according to reporting cited by USA Today.
The possible closures could reach as many as 60 additional locations across the United States through mid-November. However, reports differ on whether the 33 restaurants already closed after the bankruptcy filing are included in that figure.
Meritage had also closed 60 underperforming locations before entering bankruptcy. Depending on how the totals are counted, the overall number of closures connected to the company could reach roughly 120 or more.
When Meritage filed for bankruptcy, it operated 314 Wendy’s restaurants across 15 states. That made the company a major part of Wendy’s nationwide franchise network.
The financial numbers help explain the pressure. Meritage reported a $31.5 million net loss in 2025. It then recorded another $23.1 million loss during the first half of 2026, according to QSR Magazine.
The franchise operator blamed weak sales, aggressive discounting and what it described as less effective Wendy’s marketing under the chain’s previous leadership. Those problems have landed as restaurant operators continue to face higher costs and difficult sales conditions.
Beef prices have added to the strain. The source report says stubbornly high beef costs have continued despite efforts by the Trump administration to increase imports and bring prices down.
In February, President Donald Trump authorized an additional 80,000 metric tons of tariff-free beef imports from Argentina. In August, the White House allowed another 300,000 metric tons of foreign beef trimmings into the country at reduced tariff rates, with the goal of lowering hamburger prices.
So far, those steps have delivered little relief. Ground beef prices have climbed more than 22% since Trump returned to office, according to the report.
Meritage’s bankruptcy has also sparked a major financial dispute with Wendy’s. The fast-food chain claims the franchise operator owes approximately $147 million in royalties, fees and other contractual charges.
That dispute adds another layer of trouble for Wendy’s, which has already experienced a significant reduction in its restaurant count. The burger chain has suffered more than 300 net restaurant closures since 2024, including 245 during the first half of 2026, according to NRN.
The Meritage bankruptcy puts even more Wendy’s locations at risk of closure at a time when the chain is already dealing with shrinking store numbers, weak sales and rising food costs. The possible closures remain subject to the bankruptcy process.
Source: The Liberty Daily