Wendy's Major Franchisee Meritage Hospitality Files for Bankruptcy

The bankruptcy filing highlights the systemic instability currently plaguing the Wendy’s brand. Meritage, which manages 314 locations across 15 states, cited the burger chain’s broader struggles to attract value-conscious diners as a primary driver of its financial distress. In a June investor conference, CEO Bob Schermer revealed that store-level EBITDA had cratered by 48% in 2025, pushed downward by aggressive discounting and the rising cost of beef.

According to court documents filed in the Western District of Michigan, Meritage lists both assets and liabilities in the $10 million to $50 million range. Quality Is Our Recipe LLC, the parent entity of Wendy’s, stands as the largest unsecured creditor with a claim of $24.9 million in deferred franchise fees. Despite the restructuring effort, the company intends to maintain normal operations across its restaurant portfolio, including its secondary holdings in the Bojangle's chain.