Major burger chain franchisee files for bankruptcy, putting more than 30 restaurants at risk

Wendy’s customers could see more restaurant closures in the coming weeks as one of the fast-food chain’s largest franchisees works through bankruptcy. The company behind hundreds of Wendy’s locations has identified dozens of restaurants that could be shut down as part of its restructuring efforts.

Franchisee bankruptcy

Meritage Hospitality Group, a Grand Rapids, Michigan-based franchisee, filed for Chapter 11 bankruptcy protection on September 17. The company operates 314 Wendy’s restaurants across 15 states and employs approximately 9,000 people.

According to recent bankruptcy court filings, Meritage could close at least 30 additional Wendy’s restaurants as it restructures. The closures are expected to take place on a rolling basis through October 16, with five locations already identified in Florida, Oklahoma, Texas, and Virginia.

The five identified restaurants include locations in Gordonsville, Virginia; Jacksonville and Tallahassee, Florida; Levelland, Texas; and Durant, Oklahoma. The five stores were described as unprofitable and were scheduled for closure in late September. Additional locations have not yet been publicly identified.

The closures keep on coming

The closures come after Meritage had already shut down roughly 60 underperforming Wendy’s restaurants beginning in late 2025. The company has also reduced or modified breakfast hours and taken other cost-cutting measures.

Meritage has attributed its financial difficulties to several factors, including declining sales, higher operating expenses, and rising beef costs. Its revenue fell 7.6% in 2025, while revenue declined another 14% during the first half of 2026, according to bankruptcy reporting.

The bankruptcy does not mean all Meritage-operated Wendy’s restaurants are closing. The company has said it intends to continue operating its remaining restaurants and paying employees while it works through the Chapter 11 restructuring process.

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