---
title: "Giant Wendy’s franchisee Meritage Hospitality Group files for bankruptcy"
url: https://burnaze.com/article/ec06409c-b2d8-43eb-8309-2540fa7524f7
source: "Nation's Restaurant News"
original_url: https://www.nrn.com/restaurant-franchising/giant-wendy-s-franchisee-meritage-hospitality-group-files-for-bankruptcy
author: "Jonathan Maze"
category: "Restaurants"
industry: "Restaurants"
topics: ["Finance & M&A"]
published: 2026-09-18T13:42:40.000Z
modified: 2026-10-31T13:18:39.764Z
image: https://eu-images.contentstack.com/v3/assets/bltea7aee2fca050a19/blt049eae99f10c1ae3/6aad401ae40756aadcb47139/Wendy_s_Shutterstock_3.jpg?width=720&quality=80&disable=upscale
---

# Giant Wendy’s franchisee Meritage Hospitality Group files for bankruptcy

**TL;DR:** Meritage Hospitality Group, a 314-unit Wendy's franchisee, has filed for Chapter 11 bankruptcy protection due to financial pressures. The company operates locations in the Midwest and Southeast and has struggled with weak sales and increasing costs.

*By Jonathan Maze, originally published in Nation's Restaurant News on 2026-09-18. [Read the original](https://www.nrn.com/restaurant-franchising/giant-wendy-s-franchisee-meritage-hospitality-group-files-for-bankruptcy).*

## Story

Meritage Hospitality Group, one of Wendy’s biggest franchisees, filed for Chapter 11 bankruptcy protection this week.

The filing comes months after the Grand Rapids, Michigan-based operator closed 60 locations, citing Wendy’s weak overall performance. The company said in a statement that it believes the bankruptcy process “will enable it to strengthen its balance sheet and create financial flexibility.”

Meritage operates 314 Wendy’s restaurants, one Bojangles location and five locations of the breakfast concept Morning Belle.

The company claimed between $10 million and $50 million in assets as well as liabilities, according to court documents. It owes $150 million to City National Bank, which declared that debt in default last year.

“Our focus remains on serving our customers, supporting our franchise system, and strengthening the long-term health of the brand,” Wendy’s said in a statement. “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.”

Meritage operates locations in the Midwest and Southeast. Its bankruptcy filing comes as Wendy’s has struggled with weak sales, a revolving leadership door, and closing locations. Same-store sales at the chain have declined for six straight quarters, including 7% last quarter. On a two-year basis, same-store sales have fallen more than 10% so far this year.

That has created enormous problems for the chain’s franchisees. Meritage earlier this year hired a restructuring specialist, Kevin Cleary from Fort Dearborn Partners, to operate as CEO. It also acknowledged having received a forbearance from its lenders while it worked to cut costs.

That report also highlighted challenges that franchisees are facing as these sales fall and costs, notably beef, continue to increase.

Meritage said that its store-level EBITDA, or earnings before interest, taxes, depreciation, and amortization, fell 48% last year, to $36.2 million. The company also said that its beverage contract was short $11 million, and so it asked its lenders for a payment forbearance.

Meritage also said that it has stopped or altered breakfast service at all underperforming locations, which helped improve profit margins.

“The filing follows a candid assessment of the financial pressures facing the company, including the sustained systemwide headwinds affecting the broader Wendy’s brand over the past few years,” Meritage said in a release. It said it “has a high level of confidence in the opportunity for a brand turnaround.”

## Entities

- QSR (sector)
- Nation's Restaurant News (publication)
- Wendy's (company)
- Bojangles (company)
- quick service (topic)
- Jonathan Maze (person)
- Meritage Hospitality Group (company)
- bankruptcy filing (topic)
- franchisee struggles (topic)
- financial restructuring (topic)
- City National Bank (investor)
- Kevin Cleary (person)

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Originally reported by Jonathan Maze, Nation's Restaurant News (https://www.nrn.com/restaurant-franchising/giant-wendy-s-franchisee-meritage-hospitality-group-files-for-bankruptcy). Summarized by Burnaze (https://burnaze.com/article/ec06409c-b2d8-43eb-8309-2540fa7524f7).