Meritage Hospitality Group, one of Wendy’s largest franchise operators in the U.S., has filed for Chapter 11 bankruptcy protection after sustained pressure on restaurant-level profitability, rising costs and weaker performance across the Wendy’s system.
The Grand Rapids, Michigan-based operator filed voluntarily on September 17 in the U.S. Bankruptcy Court for the Western District of Michigan. Meritage operates 314 Wendy’s restaurants, along with one Bojangles location and five independently branded concepts across 15 states. The company employs approximately 9,000 people and said its restaurants will continue operating during the restructuring.
Meritage said the decision followed more than a year of discussions with its lenders and Wendy’s as it assessed the company’s financial position. Because the vast majority of its portfolio operates under the Wendy’s brand, the franchisee said broader systemwide pressures had a significant impact on its finances. The Chapter 11 process is intended to strengthen its balance sheet, create financial flexibility and establish a more sustainable capital structure.
The filing follows a series of operational measures aimed at stabilising Meritage’s business. Earlier this year, the company closed approximately 60 underperforming restaurants and changed or eliminated breakfast service at some locations to improve store-level profitability.
The financial deterioration was significant. Meritage reported that store-level EBITDA fell 48% in 2025 to $36.2 million, according to figures cited by Nation’s Restaurant News. The operator has also faced higher beef costs and the financial impact of discounting across the Wendy’s system.
