If your neighborhood Wendy’s has suddenly gone dark, with the lights off and a sign taped to the door, you may be seeing the fallout from a very big business problem. One of the largest Wendy’s franchisees in the country is in bankruptcy, and it is closing restaurants in batches. According to a report in Nation’s Restaurant News, written by Restaurant Business editor in chief Jonathan Maze on October 20, 2026, the number could climb a lot higher.
What Is Happening
The company is Meritage Hospitality Group, based in Grand Rapids, Michigan. It filed for Chapter 11 debt protection on September 17. According to the report, Meritage closed another 13 restaurants late the previous week, bringing the number of locations closed since late September to 33.
It is not done. Court documents indicate the company could close up to 60 restaurants through mid November.
The Numbers Behind the Closures
Here is how the report lays it out:
- Meritage once operated 374 Wendy’s locations.
- 33 restaurants have closed since late September.
- Up to 60 more could close through mid November, according to court documents.
- That does not include 60 restaurants Meritage closed earlier this year, before its September 17 filing.
- If the additional 60 close, a franchisee that at one point ran 374 Wendy’s will have closed 120.
Why These Stores
The report says the restaurants slated for closure generally have low average sales and lose money. Court filings show some of them make less than $900,000 in revenue per year, which is less than half the average for the Wendy’s system. Each of these restaurants has negative EBITDA, a measure of earnings before interest, taxes, depreciation and amortization. In plain English, they are losing money. The report says some lost nearly $200,000 over the past 12 months.
Meritage has been closing locations in groups to improve its overall profitability. The lenders who hold the franchisee’s $155 million in secured debt want to preserve as much cash as possible, and money-losing stores tend to drain cash.
A Shrinking Wendy’s Footprint
The problems at Meritage have made a decline worse. Wendy’s has closed a net of more than 300 locations since 2024, according to company filings. That includes 245 net closures in the first half of this year. The report notes that many of those closures were designed to improve franchisee profitability.
The report also says Wendy’s sales have taken a hit in the past couple of years amid a weak operating environment, as consumers cut back on fast food dining, and amid the chain’s own challenges. The company hired Bob Wright earlier this year as CEO and has overhauled much of its leadership team.
What This Means for Your Local Wendy’s
It is worth being clear about what the report does and does not say. It does not name which restaurants are closing, and it does not say your own store is on the list. The stores targeted are described as those with low sales that lose money. So a busy location is less likely to fit that description than a slow one, but only the company and the court filings can say for sure.
If you have a Wendy’s you like, here are some practical steps:
- Check before you drive. If you are making a special trip, look up the location online or call ahead so you do not show up to a locked door.
- Use your gift cards. If you are holding a gift card or app credit, it is smart not to let it sit for months.
- Ask at the counter. If your usual Wendy’s looks quiet or short on staff, a friendly question to the crew is the quickest way to learn whether anything is changing.
- Keep an eye on the news. The closures are continuing through mid November, so the picture may change quickly.
What About the Workers
Every one of these closed doors means a crew that has lost a workplace. The report focuses on the business side and does not detail what happens to employees, but it is worth remembering that real people are behind each number. If your local store shuts down, a kind word to the folks who served you for years goes a long way, and so does a tip or a good review for the next place they land.
Why Franchise Troubles Reach Your Table
Most people think of a fast food chain as one big company, but many restaurants are run by franchisees, businesses that operate stores under the brand’s name. When one of those operators runs into money trouble, the effect shows up the way it has here, as closed doors in towns that may have had that restaurant for years. The report describes Meritage’s closures as a bid to improve the company’s overall profitability, with the stores that lose money going first.
The Bottom Line
A big franchisee in bankruptcy, 33 closures already and as many as 60 more on the way, tell a story about how hard it is right now for fast food chains to turn a profit. The report says Wendy’s sales have suffered as consumers cut back, and closures have piled up across the system. Your local Wendy’s may be just fine, but if you count on it for a quick lunch, it is worth checking before you go.
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