Wendy's Franchisee to Close Up to 60 Restaurants Amid Bankruptcy Filing

Meritage Hospitality Group, a significant franchisee for Wendy's, is seeking court permission to close an additional 20 to 60 restaurants. This move follows a Chapter 11 bankruptcy filing on September 16, according to court documents. The company operated 314 Wendy's locations at the time of the filing.

The potential closures, if approved, would mean customers could see the last of these establishments by November 13. The specific locations slated for closure have not yet been disclosed.

This is not the first round of closures for Meritage Hospitality Group. The Michigan-based company has already removed 33 restaurants from its portfolio this year, including 20 in September and 13 in October. Prior to filing for bankruptcy, the company had already closed approximately 60 underperforming stores, beginning in the fourth quarter of last year. These cumulative closures bring the total number of lost locations to around 93 since late last year.

These previous closures were deemed necessary by the company's lenders to manage cash flow during the bankruptcy proceedings. Meritage noted in a prior statement that "the substantial majority of Meritage’s restaurant portfolio operates under Wendy’s brand, [and] those system-wide pressures have had a significant impact on the Company’s financial position."

The broader Wendy's corporation has also announced plans to close hundreds of its U.S. restaurants. In a recent investor call, the Ohio-based chain stated its intention to shut down approximately 5% to 6% of its U.S. locations, equating to 240 to 360 restaurants, in the first half of 2026. The company described this strategy as an effort to boost profits and enhance the appeal of remaining stores to customers.

"By closing consistently underperforming restaurants, we’re enabling our franchisee partners to increase focus on locations with the greatest potential for profitable growth," Wendy's said in a February statement.

These closures come as Wendy's has reported declining same-store sales for six consecutive quarters. In August, the chain lost its position as the second-largest burger chain in the U.S. to Burger King, ending a six-year run in that spot behind McDonald's.