GRAND RAPIDS, Mich. — A Wendy’s franchisee that runs 314 of the fast-food restaurants across 15 states filed for Chapter 11 bankruptcy protection on Thursday.
Meritage Hospitality Group filed in the United States Bankruptcy Court for the Western District of Michigan, USA Today reported. The franchisee noted in court documents that it owes Wendy’s International nearly $25 million.
Wendy’s filed a notice of termination of the company’s franchise agreement “effective immediately” on Sept. 16, The Associated Press reported.
The filing comes after the fast-food chain reported six consecutive quarters of same-store sales declines, and the parent company’s stock has lost two-thirds of its value over the past three years, according to CNBC.
Wendy’s same-store U.S. sales fell 7% in its most recent quarter, the AP reported.
“Because the substantial majority of Meritage’s restaurant portfolio operates under Wendy’s brand, those system-wide pressures have had a significant impact on the Company’s financial position,” Meritage Hospitality Group said in a news release announcing the filing.
Meritage is headquartered in Grand Rapids, Michigan, and employs approximately 9,000 employees, according to the news release.
The company is seeking permission to pay wages, other compensation and reimbursable expenses, court documents show. It also asked to continue honoring Employee Benefits Programs, Wendy’s gift cards and loyalty programs, USA Today reported.
Wendy’s said in a statement on Monday that the company is focused on “serving our customers, supporting our franchise system and strengthening the long-term health of the brand.”
“We partner closely with franchisees that are experiencing challenges to support them and evaluate each situation on a case-by-case basis to identify the best and most sustainable path forward,” the company said.
Michigan is Meritage’s largest market, with 54 Wendy’s locations, the AP reported. The company also runs 44 Wendy’s in both Georgia and Florida, 29 in Connecticut, 24 in Tennessee, 23 in Oklahoma and fewer than 20 each in Arkansas, Indiana, Massachusetts, Mississippi, Missouri, North Carolina, Ohio, Texas and Virginia, according to the news organization.
In a statement Monday to the AP about Meritage, Wendy’s said that its focus is “strengthening the long-term health of the brand.”
“We worked with this franchise organization and its lenders for more than a year to find a sustainable path forward,” the company said. “Ultimately, based on these circumstances, we determined that termination was the appropriate course of action.”
Meritage Hospitality Group previously ran hotels, USA Today reported. According to court documents, the company’s relationship with Wendy’s began in Michigan in 1998, when the business bought 28 Wendy’s restaurants.
During a seven-year period beginning in 2011, the company bought 234 more restaurants.
In July 2025, Meritage made an agreement with Bojangles to build 15 new restaurants by April 2031, USA Today reported. The company opened its first Bojangles restaurant in Michigan in February 2026, according to court documents.
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