Wendy's Seeks Control of 314 Meritage Restaurants

Wendy’s is objecting to Meritage Hospitality Group’s bankruptcy, claiming the franchisee owes $27.4 million in unpaid royalties and that its franchise agreements were terminated. Wendy’s argues Meritage has no right to operate its 314 locations and suggests transferring them to Wendy’s or other franchisees. Meritage owes $155 million in secured debt, primarily to City National Bank. The U.S. Bankruptcy Trustee is also opposing Meritage’s plan to close up to 40 restaurants.

Wendy’s Co terminated franchise agreements with Meritage Hospitality Group (MHG) over $147M in unpaid fees, affecting 314 US locations. Wendy’s claims termination is valid despite MHG’s bankruptcy filing, while MHG disputes this. The outcome may impact Wendy’s operations and MHG’s bankruptcy case.

Meritage Hospitality Group, operating 314 Wendy's restaurants, filed for Chapter 11 bankruptcy. Wendy's terminated Meritage's franchise agreements, citing $147 million in unpaid fees. Meritage blames beef costs, weather, and Wendy's marketing. Wendy's stock fell to $6.74, near its 52-week low.

Meritage Hospitality Group, a major Wendy's franchisee, filed for bankruptcy after Wendy's moved to terminate its franchise rights for 300+ restaurants. Wendy's claims Meritage owes $146.9M in fees. Meritage disputes the termination and plans to restructure. Revenue fell 7.6% in 2025 and 14% in the first half of 2026.

Meritage Hospitality Group, a Wendy's franchisee with 314 locations, filed for Chapter 11 bankruptcy. Wendy's (WEN) stock fell 3.6% on the news, closing at $6.74. Meritage's filing may impact Wendy's royalty revenue, which fell 6.5% in Q2. The company's U.S. same-restaurant sales also declined 7.0% in Q2. Wendy's is the largest unsecured creditor with a $24.9 million deferred-fee claim.

Meritage Hospitality, a major Wendy's franchisee, filed for Chapter 11 bankruptcy, aiming to restructure while keeping 314 Wendy's locations open. The company cited financial pressures from rising beef costs and discounting, with store-level EBITDA falling 48% in 2025. Wendy's, as the largest unsecured creditor, is owed $24.9 million in deferred fees.