GRAND RAPIDS, Mich. (WOOD) — Wendy’s says it has terminated franchise agreements with the Grand Rapids-based Meritage Hospitality Group, which operates 314 Wendy’s restaurants across 15 states.
Meritage on Thursday filed for Chapter 11 bankruptcy, saying the process would give the company “the tools to address its financial pressures” and position itself for future success.
Wendy’s operator Meritage files for bankruptcy
In a Monday court filing, Wendy’s said it sent Meritage a termination notice on Wednesday, the day before Meritage filed for bankruptcy. The termination notice, included in the court filing, said Meritage owed nearly $147 million in total: about $27.4 million in royalties and other fees and $119.5 million in continuous operations fees. It called for Meritage to “immediately and permanently cease all use of the Wendy’s system, confidential methods, and all proprietary marks, including all branded signage, advertising, and materials.”
Wendy’s said Meritage began failing to pay certain fees in July 2025, so it sent Meritage a notice of default in October 2025. The two then came to a temporary agreement, “under which (Wendy’s) agreed to forbear from exercising its termination rights under the Franchise Agreements while the parties attempted to negotiate a longer-term solution.”…