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Meritage Hospitality Group operates a diverse set of restaurant brands across 16 states, focusing on acquiring and managing restaurant franchises, with a significant presence in the Wendy's system. It earns revenue by running its restaurants in both casual dining and quick-service formats and by growing its portfolio through acquisitions. The company differentiates itself through its scale as a multi-brand franchise operator, its emphasis on consistent hospitality experiences, and its commitment to community engagement and partnerships. Its goal is to expand its footprint and deliver value to guests, teammates, communities, and shareholders while pursuing sustainable growth.
Industries
Food & Agriculture
Consumer Goods
Company Size
201-500
Company Stage
IPO
Headquarters
Grand Rapids, Michigan
Founded
1986
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Total Funding
$18.9M
Above
Industry Average
Funded Over
4 Rounds
Flexible Work Hours
401(k) Company Match
401(k) Retirement Plan
Wendy's is making a move in the Meritage Hospitality bankruptcy fallout. Restaurant franchisors often play an outsized role in bankruptcy because they control the brand, the franchise agreement, and who is allowed to keep operating under the name. That is now the central issue in Wendy's dispute with Meritage Hospitality Group, a major franchisee whose Chapter 11 filing has triggered a fight over hundreds of Wendy's restaurants in the Midwest and South. Wendy's formally objected to Meritage's continued operations. Wendy's has asked the bankruptcy court to block Meritage Hospitality Group from continuing to operate its Wendy's restaurants under terminated franchise agreements. Nation's Restaurant News reported on September 22 that Wendy's said in court filings Meritage had defaulted on its franchise agreements, failed to cure unpaid royalty obligations, and no longer had the right to run the stores. The franchisor said Meritage owes $27.4 million in unpaid royalties, and the filing sets up a direct challenge to the debtor's control of a large Wendy's portfolio. The scale is significant. Meritage operates 314 Wendy's restaurants, along with one Bojangles location and five Morning Belle restaurants, according to Nation's Restaurant News reporting published after the Chapter 11 filing on September 18. Wendy's said the franchisee had received an extension on royalty payments, but that extension expired in August. After Meritage did not pay, Wendy's terminated the franchise agreements earlier in September, according to the report. Wendy's is not just objecting to Meritage's legal position. The company is also signaling what it wants next. According to the filing described by Nation's Restaurant News, Wendy's is effectively arguing that the restaurants should be transitioned either back to the franchisor or to other approved franchisees, with a short-term operating arrangement possible during any handoff. The local footprint is broad, but specific store outcomes remain unclear. For customers and workers in Meritage markets, the immediate issue is continuity. Nation's Restaurant News reported that Meritage's Wendy's restaurants are concentrated mostly in the Midwest and South, which means the bankruptcy dispute has consequences across a large regional footprint rather than in a single city or state. What is confirmed is the size of the Wendy's estate in bankruptcy and Wendy's effort to limit Meritage's ability to keep operating those units under the old agreements. What is not yet public is a comprehensive store-by-store list tied to Wendy's latest court move. The company has not released a full list of affected state, city, or local restaurant locations connected to the franchise-termination dispute. That means readers in specific markets may know a Meritage-operated Wendy's is in their area, but the current public reporting does not identify every restaurant that could be sold, relicensed, temporarily operated, or closed. There is also a second operational question hanging over the case. The U.S. Trustee has objected to Meritage's request to close up to 40 restaurants in the coming weeks, calling that proposal outside the ordinary course of business, according to Nation's Restaurant News. The first of those closures could begin quickly, but public reporting has not identified a complete city-level list of those locations. Debt, royalties, and weak performance are at the center of the dispute. The underlying causes described so far are financial, operational, and brand-specific. Nation's Restaurant News reported that Meritage entered Chapter 11 with about $155 million in secured debt, much of it owed to City National Bank. In a bankruptcy case, secured lenders typically have first-priority claims on assets, but franchisors still retain leverage because franchise agreements determine who may legally operate branded restaurants. Meritage's filing also followed earlier retrenchment. Nation's Restaurant News reported on September 18 that the company had already closed 60 locations earlier in 2026, and that those closures were linked to Wendy's weak overall performance. That earlier report also said Meritage believed the bankruptcy process would help it strengthen its balance sheet and create financial flexibility, while Wendy's said its focus remained on customers, the franchise system, and the long-term health of the brand. For customers, the practical takeaway is that most restaurants may continue operating during the early stages of the case, but ownership or operating control could change if Wendy's prevails. Wendy's has said it would consider a temporary license to keep restaurants running during a transition, according to Nation's Restaurant News. The next phase of the case is likely to determine whether these restaurants stay with Meritage for now, move to Wendy's control, or are transferred to other franchisees.
What Wendy's says about the bankruptcy affecting 314 of its restaurants. Wendy's says major franchisee Meritage owes nearly $147 million after filing for Chapter 11 bankruptcy. Here's what happened. 24 September 2026, 02:56 AM Wendy's is pushing back against one of its largest US franchise operators after the company filed for Chapter 11 bankruptcy protection. The fast-food chain claims it is owed almost $147 million in fees. Importantly, The Wendy's Company itself has not filed for bankruptcy. The Chapter 11 case involves Meritage Hospitality Group, which is a major franchisee that operates 314 Wendy's restaurants across 15 states and employs around 9,000 people. Meritage filed for bankruptcy protection in Michigan on Sept. 17. The filing came just one day after Wendy's issued a notice seeking to immediately terminate its franchise agreement with Meritage. Wendy's claims millions are owed. According to court documents, Wendy's claims Meritage owes approximately $27.4 million in royalties and other fees, plus another $119.5 million in so-called continuous operations fees connected to restaurant closures. Together, the claims total roughly $146.9 million. Meritage closed around 60 underperforming Wendy's restaurants as part of an earlier restructuring effort. Wendy's said it spent more than a year working with Meritage and its lenders to find a sustainable solution before deciding to terminate the relationship. "Our focus remains on serving our customers, supporting our franchise system, and strengthening the long-term health of the brand," Wendy's said in a statement reported by Restaurant Business. Meritage, on the other hand, pointed to other pressures facing the Wendy's system. Store-level EBITDA at its Wendy's restaurants dropped 48% in 2025, with rising beef prices and heavier discounting among the factors weighing on profitability. The company nevertheless plans to keep its restaurants operating and continue paying employees while it restructures. Wendy's is facing challenges of its own. US same-restaurant sales fell 7% during Q2, while US systemwide sales dropped 8.2%. Wendy's generated $571 million in quarterly revenue and $32.6 million in net income, but withdrew its 2026 outlook as its new leadership works on a turnaround strategy. Wendy's stock remains under pressure. Investors have also been keeping a close eye on Wendy's stock. WEN closed at $6.73 on Sept. 23, down 1.17% for the session, after trading as high as $7.19 on Sept. 17. That leaves the stock roughly 3.7% below its Sept. 17 closing price of $6.99. Wendy's stock price (Source: CoinCodex) The Meritage bankruptcy now only adds another complication to Wendy's turnaround, even though the Chapter 11 filing belongs to its franchisee rather than the Wendy's corporate parent. Kraken Crypto Exchange. Best Crypto Exchange with Strongest Security * Trade over 600 different cryptocurrencies on spot and futures markets. * Grow your crypto holdings passively through staking with no lock-up periods. * Big selection of supported currencies and deposit options including bank transfers, PayPal, debit cards and more. * Operating since 2013 with the highest security standards, never suffered a hack. Cryptocurrency trading involves substantial risk, including the possible loss of principal. Digital asset markets are volatile and may not be suitable for all investors. Nothing herein constitutes investment, legal, or financial advice. ENRICH your inbox with its best stories. Danielle Walgenbach Danielle is a journalist covering cryptocurrency and financial markets. With more than four years of reporting experience, she specializes in breaking down complex financial and economic topics into clear, well-researched stories.
Could 7 Mississippi Wendy's restaurants close? Mississippi Clarion Ledger Sept. 24, 2026, 9:59 a.m. CT Could your local Wendy's restaurant close? The company says seven restaurants in Mississippi shouldn't be allowed to operate as part of the chain. Their franchise agreements were terminated before the operator declared bankruptcy. Meritage Hospitality Group Inc. is one of the nation's largest restaurant operators. The company announced on Sept. 17, that it had voluntarily filed petitions for relief in the U.S. Bankruptcy Court for the Western District of Michigan. Meritage has 314 Wendy's, one Bojangles and five independently branded dining concepts across 15 states, including Mississippi, according to a release. Now, Wendy's says those locations shouldn't get to use the company's logos, branding and other intellectual property. "The Company took this step to strengthen its balance sheet and establish a sustainable capital structure that positions Meritage for long-term success," Meritage said in a news release. "The company anticipates maintaining restaurant-level operations during the restructuring process and intends to continue paying its approximately 9,000 team members their wages and benefits without interruption, subject to court approval of customary 'first day' motions." The Wendy's company, through the Quality Is Its Recipe LLC, said in a Sept. 21 court filing that Meritage owes $27.4 million in royalties, advertising and past-due fees dating to 2025. Wendy's had terminated its franchise agreements on Sept. 16, before the bankruptcy filing. Wendy's said it would keep Meritage from operating its restaurants as Wendy's locations. It's unclear what effect the termination will have on the restaurants' continued operation or the bankruptcy case. "Our focus remains on serving our customers, supporting our franchise system, and 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," Heidi Schauer, vice president of communications, public affairs and customer care for Wendy's, said via email. "The Clarion-Ledger worked with this franchise organization and its lenders for more than a year to find a sustainable path forward. Ultimately, based on these circumstances, The Clarion-Ledger determined that termination was the appropriate course of action. "At this time, we do not anticipate a disruption to restaurant operations," she added. The Wendy's company, however, argues that Meritage should not be allowed to continue operating while the bankruptcy case continues. Its filing adds that Meritage should not be authorized to conduct business under the terminated franchise agreements and that letting them "continue to operate the restaurants would be a violation of state and federal law ..." In other court filings, the U.S. trustee also objected to some of Meritage's bankruptcy plans, which include closing at least 48 "underperforming" restaurants nationally. The company, the trustee said, wanted to close 10 restaurants by Sept. 25, 10 more by Oct. 2, Oct. 9 and Oct. 16 to protect secured lender City National Bank. In its May CEO report, Meritage said it previously closed 60 underperforming stores. Where does Meritage Hospitality have Wendy's restaurants? The company operates in Indiana, Ohio, Tennessee, Massachusetts, Connecticut, Missouri, Arkansas, Virginia, North Carolina, Georgia, Florida, Mississippi, Oklahoma and Texas. Which Mississippi Wendy's locations are affected? Meritage restaurants account for seven of about 90 Mississippi locations. Quality Is Its Recipe's court filing lists eight restaurants in Mississippi (including one that closed). According to a court filing by the Wendy's company - Quality Is Its Recipe - the following locations are included in the termination: The restaurant at 718 Goodman Road West, Horn Lake, was listed in the filing but appears to be permanently closed already. Is Wendy's going out of business? No, the bankruptcy filing affects a franchisee that operates more than 300 locations in 15 U.S. states. In August, the company said it generated revenue of $571 million and global systemwide sales of approximately $3.4 billion for the quarter ending in June. It also generated net income of $32.6 million and adjusted EBITDA of $124.1 million.
Operator of 314 Wendy's locations in the US files for bankruptcy protection. Meritage Hospitality Group, a large Wendy's franchisee, filed for bankruptcy after Wendy's tried to terminate its agreement over $146.9 million in owed fees. By AP September 22, 2026, 9:07:57 AM IST (Published) One of the largest US franchisees for Wendy's has filed for bankruptcy protection after the restaurant chain 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 worked with this franchise organisation and its lenders for more than a year to find a sustainable path forward," the company said. "Ultimately, based on these circumstances, we determined that termination was the appropriate course of action." Wendy's shares were up 1% in afternoon trading Monday. Michigan is Meritage's largest market, with 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 Virginia. 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 to 358 locations this year. Wendy's same-store US 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.
Wendy's, Pura Vida, and the couch economy. Get all the headlines in today's Restaurant Daily podcast. September 21, 2026 A big Wendy's franchisee has filed for bankruptcy. Meritage Hospitality Group, which operates 314 locations of the fast-food chain, declared Chapter 11 bankruptcy, citing a steep decline in restaurant-level profits. The bankruptcy filing comes after a difficult stretch for Wendy's. Same-store sales have fallen for six straight quarters, and are down more than 10% on a two-year basis so far in 2026. Meritage closed 60 restaurants earlier this year and stopped serving breakfast at some of its locations. Consumers love the comforts of home, and new Visa data shows just how much: 58% of spending in 2026 has happened remotely, online or on an app, up from 48% in 2019. The credit card company has dubbed it the couch economy, and found that food delivery is now a key element of the at-home lifestyle. About 9% of Visa cards are now active on food delivery apps, and the heaviest users tend to be everyday consumers rather than high rollers, Visa said. Last year, the fast-casual-ish concept Pura Vida Miami won an investment from private-equity firm TSG Consumer. And since then, Pura Vida has been busy. Founded by married couple Omer and Jennifer Horev in 2012, the Miami-based chain has recruited an all-star corporate team. It has 57 units in seven states and expects to reach 65 by the end of the year, all company owned. By the end of next year, Pura Vida expects to reach 100 units. Described as a fast-casual/casual-dining hybrid, Pura Vida is a more-premium all-day-café with a focus on clean food. The target audience is health-minded consumers looking for higher protein, no seed oils and unprocessed ingredients. Get all the headlines in today's Restaurant Daily podcast. Managing Editor Leigh Anne Zinsmeister is a managing editor for Informa's Foodservice Media, with brands including Nation's Restaurant News, Restaurant Business, and Foodservice Director. Leigh Anne works on all of the brands' special reports, including Nation's Restaurant News' annual Technomic Top 500 report. She also manages the group's digital engagement team. Leigh Anne lives in New York City, but also claims Phoenix, Dallas and Cleveland as hometowns. Leigh Anne holds a bachelor's degree in print journalism from the Walter Cronkite School of Journalism and Mass Communication at Arizona State University, where she also studied European history. Leigh Anne Zinsmeister's experience: * Group Managing Editor, Foodservice Media (June 2026-present) * Group Managing Editor, Informa's Foodservices Vertical (Aug. 2021-June 2026) * Group Content Manager, Informa Restaurant and Food Group (Feb. 2020-Aug. 2021) * Digital Content Manager, Informa Restaurant and Food Group (April 2018-Feb. 2020) * Digital Content Producer, Informa Restaurant and Food Group (June 2016-April 2018) * Community Moderator, Mail Online (March 2014-June 2016) * Wire Editor, Gannett's Phoenix Design studio (The Arizona Republic, The Reno Gazette-Journal, The Statesman Journal, The Great Falls Tribune, The Visalia Times-Delta, The Tulare Advance Register, The Salinas Californian, The St. George Spectrum, The Desert Sun, The Coloradoan) (Jan. 2012-March 2014) Executive Editor, Restaurant Business Lisa Jennings is a veteran restaurant industry reporter and editor who covers the fast-casual sector, independent restaurants and emerging chain concepts. Her experience includes other industry publications as well as the daily newspaper The Commercial Appeal in Memphis, Tenn., where she was Food Editor. Her work has been cited in the Los Angeles Times, Business Insider, FoodBeast, The Huffington Post, Time.com and more. Subscribe Nation's Restaurant News Newsletters
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Industries
Food & Agriculture
Consumer Goods
Company Size
201-500
Company Stage
IPO
Headquarters
Grand Rapids, Michigan
Founded
1986
Find jobs on Simplify and start your career today