Operator of 314 US Wendy's locations files for bankruptcy protection

Business

Operator of 314 US Wendy's locations files for bankruptcy protection

2026-09-22 01:20 Last Updated At：01:30

One of Wendy’s largest U.S. franchisees has filed for bankruptcy protection after Wendy’s tried to terminate its franchise agreement.

Meritage Hospitality Group, which operates 314 Wendy’s restaurants in 15 states, said in a statement last week it intends to keep operating its restaurants and paying its 9,000 employees during the bankruptcy process.

Grand Rapids, Michigan-based Meritage filed its bankruptcy petition in federal court in western Michigan on Sept. 17. According to court documents, Wendy’s filed a notice of termination of the company’s franchise agreement “effective immediately” on Sept. 16.

Wendy’s claims Meritage owes $27.4 million in royalties and fees and $119.5 million in continuous operations fees, which companies charge to franchisees when they close locations, according to court filings. Meritage closed 60 underperforming Wendy’s locations late last year as part of a restructuring.

Asked for comment Monday on Meritage, Wendy’s said its focus is “strengthening the long-term health of the brand.”

“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,” the company said.

Michigan is Meritage’s largest market; it operates 54 Wendy’s locations there as well as five Morning Belle and Blue Porch Bar & Grill restaurants. The company also runs 44 Wendy’s in both Georgia and Florida; 29 Wendy’s in Connecticut; 24 Wendy’s in Tennessee; 23 Wendy’s in Oklahoma and less than 20 Wendy’s each in Arkansas, Indiana, Massachusetts, Mississippi, Missouri, North Carolina, Ohio, Texas and Virgina.

Dublin, Ohio-based Wendy’s has been struggling for several years with outdated stores, high beef prices and stiff competition. It closed 240 restaurants in 2024 and said earlier this year that it planned to shutter up yo 358 locations this year.

Wendy's same-store U.S. sales fell 7% in its most recent quarter.

“Wendy's is an iconic brand with exceptional assets. Today we are clearly not performing at our potential,” Wendy's President and CEO Bob Wright said in a statement last month. Wright joined Wendy's in May after previously serving as the CEO of Potbelly.

Paramount reaches deal with states to settle their case challenging Warner buyout, AP source says

CHICAGO (AP) — Skydance-owned Paramount reached a settlement Monday with a group of state attorneys general that had sued to challenge the company’s buyout of Warner Bros. Discovery, effectively paving the way for the mega merger to move forward, a person familiar with the matter told the AP.

The person was not authorized to speak publicly and did so on condition of anonymity. Details of the settlement with the states were not immediately available, but were expected to be revealed later in the day.

The coalition of states — including entertainment heavyweights like California and New York — sued to block the $81 billion merger back in July, alleging a Paramount-Warner combo would “extinguish competition” and lead to fewer choices for consumers, particularly movie theatergoers and cable customers across the U.S.

Accompanied by a complaint also filed by the Writers Guild of America, the challenge was headed toward a full antitrust trial set to kick off in March.

Paramount said the allegations were meritless, but previously agreed to delay its transaction well into next year so the case could make its way through court. It then quickly called for a settlement — arguing that it had satisfied all regulatory clearances worldwide (including from the Trump administration’s Justice Department ) and the states’ challenge was its “final obstacle.”

As reports of the states reaching a settlement with Paramount emerged Monday, critics decried the deal — while warning of what further consolidation could mean in an industry already controlled by just a few major players.

“Today, billionaires have yet again bribed, censored, and bullied their way to the top,” Alvaro Bedoya, senior adviser at the American Economic Liberties Project and former FTC commissioner, said in a statement earlier Monday. “Layoffs will follow. People from L.A. to Atlanta will lose their jobs, small businesses will lose their contracts, your cable bill and movie ticket will be even more expensive.”

Sisak reported from New York.