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One of Wendy\u2019s biggest franchisees just went bankrupt, and Wendy\u2019s wants its money back. Meritage Hospitality Group, which operates 314 Wendy\u2019s restaurants across 15 states, filed for Chapter 11 bankruptcy late last week, CNBC<\/a> reports. Quality Is Our Recipe LLC, Wendy\u2019s franchise business, is listed as Meritage\u2019s top unsecured creditor. It\u2019s owed $24.9 million in deferred franchise fees.<\/p>\n The filing comes after a brutal stretch for the burger chain. Wendy\u2019s has reported same-store sales declines for six straight quarters, and its stock has lost two-thirds of its value over the past three years. At an investor conference in June, Meritage CEO Bob Schermer Jr. said store-level earnings had plummeted 48% in 2025, blaming rising beef costs and heavier discounting.<\/p>\n \u201cBecause the substantial majority of Meritage\u2019s restaurant portfolio operates under Wendy\u2019s brand, those system-wide pressures have had a significant impact on the Company\u2019s financial position,\u201d Meritage said in a statement.<\/p>\n Meritage estimated its assets and liabilities each fall between $10 million and $50 million. The company plans to keep its restaurants running through the restructuring process, along with its one Bojangles and five independently branded locations.<\/p>\n