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Wendy's-Meritage bankruptcy fight moves into another round. If you've been following the ongoing Meritage Hospitality Group/Wendy's bankruptcy story, there's a minor development worth noting - and it centers on the increasingly important fight over who has the right to operate the restaurants. Here's the latest, in brief: * Meritage has formally taken its dispute with Wendy's to another level. On Tuesday, the Grand Rapids-based Wendy's franchise operator filed a new adversary complaint in U.S. Bankruptcy Court against The Wendy's Company and Quality Is Its Recipe LLC, Wendy's franchising subsidiary. * Meritage is asking the bankruptcy court to declare that its Wendy's franchise agreements remain in effect. The company is also seeking an injunction preventing Wendy's from enforcing its previously announced termination of Meritage's franchise rights. * That is a significant issue. Meritage operates 314 Wendy's restaurants in 15 states, including 54 locations in Michigan. Its Southwest Michigan footprint includes Wendy's restaurants in Benton Harbor, St. Joseph and South Haven, among others. * Wendy's has maintained that Meritage's franchise rights were terminated before the bankruptcy filing. Meritage disputes that position and contends the franchise agreements are still part of the bankruptcy estate. That disagreement is now formally before the bankruptcy court. * There is still no indication that any of the Southwest Michigan Wendy's restaurants are closing because of the bankruptcy. They are operating normally from all outward indications. * Meanwhile, Meritage is proceeding with the Chapter 11 restructuring and has already identified a number of underperforming restaurants for closure elsewhere in its system. The first five announced closures were in Virginia, Florida, Texas and Oklahoma - none in Michigan. For local Wendy's customers, then, it remains business as usual for now. But the question of who ultimately controls the Meritage-operated Wendy's restaurants is becoming one of the central issues in the bankruptcy case.

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.