Meritage Hospitality Group filed for Chapter 11 protection in the Western District of Michigan.
Why it matters: The filing puts more pressure on Wendy's franchise network and could affect operations, employees and lenders. Meritage said its restaurants will stay open during restructuring, but the case could still reshape debt terms and store ownership.
- Meritage filed voluntary Chapter 11 petitions Sept. 17 in the U.S. Bankruptcy Court for the Western District of Michigan.
- The company said it operates 314 Wendy's restaurants, one Bojangles and five independently branded concepts across 15 states.
- Meritage said it plans to keep paying about 9,000 team members, subject to court approval of first-day motions.
- Wendy's said second-quarter 2026 global systemwide sales fell 6.5% and U.S. sales fell 8.2% year over year.
Meritage Hospitality Group said it filed for Chapter 11 in the U.S. Bankruptcy Court for the Western District of Michigan, saying the move is intended to strengthen its balance sheet and position the company for long-term success. Meritage said the case was voluntary and filed Sept. 17.
The company said it operates 314 Wendy's restaurants, one Bojangles and five independently branded concepts across 15 states. It also said more than a year of work with lenders and its franchisor did not produce a solution before the filing. In its filing statement, Meritage said restaurant-level operations are expected to continue during restructuring.
Meritage said it plans to keep paying about 9,000 team members their wages and benefits, subject to court approval of standard first-day motions. The company also said Wendy's systemwide pressures over the past few years hit Meritage especially hard because most of its portfolio is Wendy's-branded. Meritage's statement did not quantify total debt or liabilities in the release.
The filing lands as Wendy's has reported weaker sales. In its second-quarter 2026 results, the company said global systemwide sales fell 6.5% and U.S. sales fell 8.2% year over year. Restaurant Dive reported that Meritage's Wendy's units represent roughly 5% of Wendy's U.S. system.
Wendy's has faced franchisee distress before. In its 2023 annual report, the company said NPC International, once its largest franchisee, filed Chapter 11 in July 2020 and later sold all of its Wendy's restaurants through a court-approved process. Wendy's annual report
By the numbers
- 314 - Wendy's restaurants Meritage said it operates
- 9,000 - team members Meritage said it expects to keep paying during restructuring
- 6.5% - Wendy's reported global systemwide sales decline in second-quarter 2026
Yes, but: Meritage said restaurants will remain open, but the case could still affect supplier payments, creditor recoveries and franchise stability if the restructuring changes ownership or debt terms.
What's next: The bankruptcy court will decide first-day motions, including pay and operating approvals, and creditors will watch for any restructuring plan or sale process.