Meritage Hospitality Group, one of Wendy’s largest U.S. franchisees, filed for Chapter 11 protection in Michigan on Sept. 17, citing profitability pressures, an 11.3% same-store sales decline in the final quarter of 2025, severe winter weather and record beef costs. The company operates 314 Wendy’s restaurants across 15 states and 320 restaurants overall, employs 8,850 people and lists assets and liabilities between $10 million and $50 million. Meritage said it owes Wendy’s International nearly $25 million and plans to evaluate restructuring options, including selling or closing underperforming locations, while seeking to preserve jobs, restaurant operations, gift cards and loyalty programs. The filing comes as Wendy’s plans to close about 300 U.S. restaurants beginning in late 2025, although the chain reported opening 44 U.S. restaurants during the first two quarters of 2026. Earlier reporting cited a termination notice from Wendy’s and larger disputed fee claims, including $27.4 million in royalties and fees and $119.5 million in continuous operations fees. Wendy’s said it is working with challenged franchisees case by case to support the brand’s long-term health.