Wendy’s Franchisee Meritage Files Chapter 11
Wendy’s Franchisee Meritage Files Chapter 11
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Key Points
1
Meritage CEO Bob Schermer said store-level earnings before interest, taxes, depreciation and amortization fell 48% in 2025, highlighting the severity of the franchisee’s profit decline.
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Wendy’s stock has lost roughly two-thirds of its value over the past three years, amid a succession of chief executives and unclear turnaround strategies.
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Meritage’s filings reportedly show $150 million owed to City National Bank, which had disclosed that the company’s debt was in default the previous year.
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The bankruptcy petition was filed by Meritage and 14 affiliates, and the company had reportedly defaulted on its franchise agreements for nearly 11 months before seeking Chapter 11 protection.
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Beyond Wendy’s, Meritage’s portfolio includes six Morning Belle brunch cafes in Michigan and Bojangles locations; a company statement said it employed about 12,000 workers at the end of 2024.
Meritage Hospitality Group, one of Wendy's largest U.S. franchisees, has filed for Chapter 11 bankruptcy protection in Michigan as profits collapse across the fast-food chain. The Grand Rapids-based company operates 314 Wendy's restaurants across 15 states and employs about 9,000 people Rolling Out, but store-level earnings fell 48% in 2025, according to CEO Bob Schermer Rolling Out. The company says all restaurants will stay open and workers will keep getting paid during the restructuring WTNH.
Meritage's collapse reflects a broader crisis at Wendy's, which has reported six consecutive quarters of same-store sales declines. Rising beef costs, heavy discounting, weak marketing, and declining customer traffic have squeezed profits, while Wendy's stock has lost roughly two-thirds of its value over three years amid leadership instability NY Post.
A Franchisee Crushed by Beef Costs and Weak Traffic
Meritage had already closed roughly 60 underperforming Wendy's locations and eliminated or scaled back breakfast service at some restaurants, but the damage was done Rolling Out. According to court filings, the company owes Wendy's franchising entity $24.9 million and owes City National Bank roughly $150 million NY Post. The company had defaulted on franchise agreements for nearly 11 months before filing for bankruptcy NY Post.
Wendy's Loses Two-Thirds of Stock Value in Three Years
Wendy's has been in turmoil. The chain cycled through multiple chief executives and never settled on a clear turnaround strategy NY Post. Same-store sales—a key measure of chain health—have declined for six straight quarters. The stock collapse reflects investor panic over whether Wendy's can compete with stronger rivals like McDonald's and Burger King NY Post.
Restaurants Will Stay Open During Restructuring
Despite the bankruptcy filing, Meritage says it will keep all 314 Wendy's restaurants open. Workers will continue receiving wages and benefits WTNH. The company's 15 affiliate entities filed alongside Meritage, and court filings list combined assets and liabilities between $10 million and $50 million Fox 2 Now. Beyond Wendy's, Meritage also operates Morning Belle brunch cafes and Bojangles locations NY Post.
More Store Closures Could Come, But None Announced Yet
Meritage's court filings make clear that further closures remain possible Find Articles. The company will now negotiate with creditors and Wendy's under bankruptcy court supervision. How many more locations might close—and whether Meritage can survive at all—remains unclear as it restructures its balance sheet.
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