Wendy’s Franchisee Store Closures: The Court Fight Over 10 Restaurants

Wendy’s is fighting its own bankrupt franchisee in court over 10 store closures. Meritage Hospitality Group, which runs 314 Wendy’s restaurants, must close at least 30 locations under a bankruptcy agreement, but Wendy’s objected to which stores made the cut and proposed swapping 7 of them for 7 others. A judge takes up the dispute on October 14.

Here’s the thing: usually when a chain’s stores close, the company and the franchisee are on the same page. Not this time. Wendy’s and Meritage Hospitality are in a full-blown legal brawl over which restaurants should die and which should survive, with a bankruptcy judge in Michigan as the referee. Wendy’s actually offered to pay out of its own pocket to save the 10 stores, and the franchisee still said no. Let’s break down what is happening and what it means if Wendy’s is your lunch spot.

Why the Wendy’s Franchisee Store Closures Ended Up in Court

Meritage must close at least 30 money-losing Wendy’s restaurants by October 16 under a court-approved financing deal. Wendy’s disagrees with which 10 stores are on the next closure list, so it asked the court to intervene.

The 10 disputed restaurants sit across Oklahoma, California, Georgia, and Florida. Meritage wants to shut them down. Wendy’s says those are the wrong 10.

Instead, Wendy’s handed the court its own alternative list: swap 7 of the 10 closures with 7 different restaurants in other markets. And here is the twist: Wendy’s admits its alternative locations bring in lower sales, but argues those stores lose less money, producing roughly $11,000 more per month in EBITDA. In the filing, Wendy’s said “the potential upside for the overall portfolio outweighs this nominal difference.”

Wendy’s even offered to cover whatever losses Meritage might eat during the swap. Meritage rejected it: the proposal came with two days’ notice, and the payment offered was not secured and would not cover the real costs of closing a different set of stores. “Wendy’s proposal would require the Debtors to keep open stores that are losing more money and to close stores that are losing less,” Meritage argued.

Wendy’s asked for an emergency hearing. The judge said no. So both sides head into a scheduled hearing on October 14, where the court will consider Wendy’s request for relief from the automatic stay. That ruling decides who calls the shots on the closures.

Why Meritage Says Its Restaurants Are Bleeding Money

Meritage blames surging beef prices, aggressive brand-wide discounting, and weak marketing for crushing its margins. Honestly, the court filings are brutal.

Beef is the big villain: Meritage’s average beef cost jumped 18.9% year over year in the three months ended June 28, amid tight U.S. cattle supplies. Even Wendy’s own executives admitted on the second-quarter earnings call that commodity costs at U.S. company-operated restaurants rose about 9%. Add in brand-wide discounting, and the franchisee absorbing the food cost feels it first.

Meritage reported 2025 revenue of $617.7 million, down 7.6%, with a $31.5 million net loss versus $8 million in net income the year before. Store-level earnings fell 48%, and revenue slid another 14% in the first half of 2026. Beginning in late 2025, Meritage had already closed about 60 underperforming Wendy’s restaurants, trimmed breakfast at some locations, and slashed administrative costs.

Which Wendy’s Locations Have Already Closed

Twenty Wendy’s restaurants have already shut their doors in two waves, with at least 10 more on the chopping block by October 16. If you are searching for a Wendy’s store closures list, here is what bankruptcy court filings show so far. Most recent wave: 1415 East Main Street, Cushing, OK; 1202 Lincolnway West, La Porte, IN; 4029 Five Forks Trickum Road, Lilburn, GA; 1901 Apalachee Parkway, Tallahassee, FL; and 753 Park Avenue, Orange Park, FL. The week before: 441 Market St, Gordonsville, VA; 1175 Dunn Ave, Jacksonville, FL; 301 College Ave, Levelland, TX; 2525 South Monroe Street, Tallahassee, FL; and 2420 W Main St, Durant, OK.

The remaining 10 closures, expected through October 16, are exactly the ones Wendy’s is fighting over. The other roughly 294 Meritage restaurants stay open while the case plays out.

What Happens Next for the 314 At-Risk Restaurants

The court takes up Wendy’s request today, October 14, and the outcome will shape how many restaurants stay open and who runs them.

If the judge grants Wendy’s relief from the automatic stay, the company gets more room to enforce its will over the closure list and the franchise agreements. If the judge sides with Meritage, the 10 disputed stores likely close on the franchisee’s schedule. A Wendy’s spokesperson called bankruptcy-related closures routine and said the goal is to keep as many restaurants open as possible, including transitioning stores to new operators where needed.

For fans, the advice is simple: the closures are targeted at underperforming stores. If your local Wendy’s is busy and well run, nothing in these filings suggests it is at risk.

The Wendy’s franchisee store closures saga is far from over. Court rulings in the coming days will decide whether the 10 disputed restaurants close on schedule or get a reprieve, and Meritage still has more closures to name through October 16. We will keep updating this story as it develops.

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