A Major Wendy’s Franchisee in Bankruptcy Has Already Closed 33 Restaurants, and Up to 60 More Could Follow

If your neighborhood Wendy’s recently went dark, you are not alone. One of the chain’s largest franchisees has been closing restaurants at a steady pace since filing for bankruptcy protection this fall, and court documents suggest even more closures could be on the way.

The company, Meritage Hospitality Group, has operated hundreds of Wendy’s restaurants across several states. Its troubles come at a difficult time for Wendy’s, which has been shrinking its number of locations as fast-food customers cut back on spending.

For customers who love their Frostys and square burgers, the closures can feel sudden and confusing. Here is what we know about the Meritage bankruptcy, why restaurants are closing, and what it means for Wendy’s as a whole.

Who Is Meritage Hospitality Group?

Meritage Hospitality Group is based in Grand Rapids, Michigan, and it is one of the biggest Wendy’s franchisees in the country. A franchisee is an independent company that pays to operate restaurants under a brand’s name. According to Nation’s Restaurant News, the company at one point operated 374 Wendy’s locations.

Meritage filed for Chapter 11 bankruptcy protection on September 17. Chapter 11 allows a company to keep operating while it reorganizes its debts and finances. As part of that process, Meritage has been closing restaurants that lose money.

How Many Restaurants Have Closed?

According to Nation’s Restaurant News, Meritage closed another 13 restaurants in mid-October, bringing the total number of closures since late September to 33. The report, published October 20, said the number was expected to keep rising.

Court documents indicated that the company could close up to 60 restaurants through mid-November. That would be in addition to the roughly 60 restaurants Meritage closed earlier in 2026, before it filed for bankruptcy. If all of those closures happen, a franchisee that once operated 374 locations will have closed about 120.

Why Are Restaurants Closing?

The restaurants being closed are generally the weakest performers. According to court filings cited by Nation’s Restaurant News, some of the locations slated for closure make less than $900,000 in revenue per year. That is less than half of the average for the Wendy’s system.

Each of these restaurants was losing money, and some lost nearly $200,000 over the previous 12 months. Lenders holding the franchisee’s $155 million in secured debt want to preserve cash, and closing money-losing restaurants is one way to do that. Other reports have pointed to rising beef costs and weaker sales as additional pressures.

A Shrinking Wendy’s

The Meritage closures are part of a bigger trend. Wendy’s has been reducing the number of its restaurants in recent years. According to Nation’s Restaurant News, the chain has closed a net of more than 300 locations since 2024, including 245 net closures in the first half of 2026, based on company filings.

Many of those closures were meant to improve franchisee profitability by shutting underperforming restaurants. Fast-food chains across the industry have faced a tough environment as consumers cut back on dining out because of higher prices.

Leadership Changes at Wendy’s

Wendy’s has also been going through changes at the top. Earlier this year, the company hired Bob Wright as its chief executive officer, and it has overhauled much of its leadership team. The chain recently brought in Tariq Hassan as its chief marketing officer.

These leadership changes come as Wendy’s tries to boost sales and attract customers back to its restaurants. The company faces strong competition from other burger chains and fast-casual restaurants.

What It Means for Customers

For customers, the closures mean that some neighborhood Wendy’s restaurants may disappear. The complete list of potential closures has not been publicly confirmed, so many people may not know whether their local restaurant is affected until it closes.

The good news is that most Wendy’s restaurants are not affected by the Meritage bankruptcy. Thousands of locations across the country continue to operate normally. Customers can check the Wendy’s app or website to find open restaurants near them.

Why Fast-Food Franchisees Are Struggling

Meritage is not the only restaurant operator facing financial pressure. Across the fast-food industry, franchisees have been dealing with higher costs for food, labor, and rent, while many customers have cut back on eating out. Beef prices in particular have been high, which affects burger chains more than most.

At the same time, competition is fierce. Burger chains are battling each other with value meals and promotions, which can squeeze profit margins. Franchisees with large debts, like Meritage, can find themselves in trouble when sales slow down.

For customers, these pressures often show up in higher menu prices and fewer locations. Many families have noticed that a fast-food meal costs much more than it did just a few years ago. Some have even found that cheap fast-food meals are not always the bargain they appear to be.

Analysts often point out that closing weak locations can help a struggling franchisee survive. By shutting restaurants that lose money, an operator can focus its cash and staff on the stores that are still profitable, which may ultimately protect more jobs over the long run.

Customers who want to know whether their local restaurant is affected can watch for posted signs, check online maps, or call ahead. Employees at affected locations may be offered positions at nearby restaurants, though that depends on staffing needs and the decisions of the franchisee.

For loyal Wendy’s fans, the good news is that menu favorites like the Frosty, the Baconator, and square hamburgers are not going anywhere. The closures affect individual restaurants run by one franchisee, not the chain’s menu or its national promotions.

What Happens Next

The Meritage bankruptcy case will continue in the coming weeks and months. The company may close more restaurants, sell some locations to other franchisees, or reorganize its operations. Wendy’s will be watching closely, since the outcome affects hundreds of its restaurants.

For now, customers can expect more closures in some areas as the franchisee works through its financial troubles. We will update readers as new information becomes available.