Meritage Hospitality Group, which runs 314 Wendy’s in 15 states, filed for Chapter 11 bankruptcy in September. It blamed beef prices and discounting. Wendy’s says it terminated Meritage’s franchise agreements.
If your local Wendy’s goes dark in October, this is probably why.
Meritage Hospitality Group, one of the biggest Wendy’s franchise operators in the country, filed for Chapter 11 bankruptcy on Sept. 18, 2026, per Fast Company. It runs 314 Wendy’s restaurants in 15 states and employs about 9,000 people.
As part of a deal with its lenders, Meritage has to close at least 30 restaurants, with closures rolling out through Oct. 16, per Fast Company.
Which Wendy’s locations are closing?
Five had been named as of Sept. 25, per Fast Company:
Gordonsville, Virginia: 441 Market St.
Jacksonville, Florida: 1175 Dunn Ave.
Levelland, Texas: 301 College Ave.
Tallahassee, Florida: 2525 S. Monroe St.
Durant, Oklahoma: 2420 W. Main St.
More are expected as the Oct. 16 deadline gets closer. Meritage had already closed about 60 weaker restaurants starting in late 2025, before it filed, per QSR Web.
What states does Meritage run Wendy’s in?
Fifteen, per QSR Web: Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia.
If you live in one of those states, there’s a chance your nearest Wendy’s is a Meritage store. Most of them are staying open during the bankruptcy, and Meritage says it will keep paying employees, per Fast Company.
Why did the Wendy’s franchisee go bankrupt?
Beef, mostly.
Meritage blamed beef inflation, deep discounting and marketing problems that pushed its profit margins to a 30-year low, per Fast Company. Beef costs jumped 18.9% compared with a year earlier in the three months ending June 28, per QSR Web.
That’s a big deal for a chain built on square burger patties. When beef gets expensive and customers expect deals, franchisees get squeezed from both sides.
The numbers show it. Meritage’s revenue fell 7.6% in 2025, to $617.7 million, and it lost $31.5 million, per QSR Web. Revenue dropped another 14% in the first half of 2026.
Is Wendy’s corporate fighting with Meritage?
Yes.
Wendy’s terminated Meritage’s franchise agreements on Sept. 16, two days before the bankruptcy filing, per QSR Web. Wendy’s says Meritage owes about $146.9 million, including $27.4 million in past-due royalties.
Meritage disputes that and says its franchise agreements are still in effect during the bankruptcy. The court will sort that out.
Meanwhile, Meritage owes one lender more than $135 million, per Fast Company.
What did Wendy’s say about the bankruptcy?
“Our focus remains on serving our customers, supporting our franchise system,” Wendy’s said, adding that it’s working on “strengthening the long-term health of the brand,” per Fast Company.
Is Wendy’s itself going out of business?
No. This is one franchise operator, not the whole company.
But it lands at a rough time for the brand.
Wendy’s U.S. same-store sales fell 7% in the second quarter, per Fast Company, and the company’s stock is down nearly 20% in 2026. Wendy’s has also admitted its marketing hasn’t been working.
How big is Wendy’s?
Wendy’s was founded by Dave Thomas in Columbus, Ohio, in 1969, and it’s still one of the biggest burger chains in the country. Most of its restaurants are run by franchisees like Meritage, not by the company itself, which is why one operator’s money problems can close dozens of stores at once.
What happens next?
The bankruptcy case is in federal court in the Western District of Michigan. It’ll decide how Meritage pays its debts and whether it keeps running Wendy’s restaurants at all.
For now, if you want a Frosty, check that your location is still open before you drive over.
Article compiled with the help of the Pirates & Princesses newsroom.
Pirates and Princesses is your destination for Disney news, theme park updates, and the pop culture you love. From Disney cruises and travel tips to Disney fashion, food, collectibles, and movie news, PNP covers it all. Visit us at piratesandprincesses.net for daily coverage. Follow PNP on Facebook and Instagram, and listen to the Pirates & Princesses podcast on Apple Podcasts and YouTube.
Hat Tips:
Fast Company (Sept. 2026), the filing, store counts, required closures, named locations, lender debt, Wendy’s statement and same-store sales
QSR Web (Sept. 2026), the 15 states, the franchise termination, beef costs and Meritage’s finances
Sporked (Oct. 3, 2026), the lead
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