Wendy’s Faces More Closures as Major Franchisee Files for Bankruptcy, Putting Up to 60 More Restaurants at Risk

Wendy’s customers could soon see even more familiar locations disappear as one of the burger chain’s largest franchise operators battles bankruptcy.

Meritage Hospitality Group, which operated 314 Wendy’s restaurants when it filed for Chapter 11 bankruptcy protection, is seeking court approval to close between 20 and 60 additional locations by November 13. The company has not yet identified which restaurants will be affected.

The latest move comes after a difficult year for the Michigan-based operator, which has already closed approximately 93 restaurants since late 2025. That total includes around 60 underperforming locations closed before its bankruptcy filing and another 33 shuttered during the restructuring process.

Why Is Wendy’s Closing More Restaurants?

Meritage’s financial troubles reflect mounting pressure across the fast-food industry, where rising food costs, weaker customer traffic and intense competition have squeezed restaurant operators.

The company has pointed to higher beef prices, aggressive discounting and declining effectiveness of Wendy’s marketing under previous management as factors contributing to its financial difficulties. Its average beef costs rose nearly 19% year over year during the three months ending in June, according to court filings.

The franchisee filed for bankruptcy protection in September after Wendy’s moved to terminate its franchise agreements over unpaid royalties and fees. The dispute has added another layer of uncertainty to the future of hundreds of restaurants.

Despite the financial challenges, Meritage says it hopes to preserve as many locations as possible while working through the bankruptcy process.

Which Wendy’s Locations Will Close?

For now, customers will have to wait for an official list.

The company’s latest court filing does not identify the restaurants facing closure. Specific locations are expected to be determined and disclosed later as the restructuring moves forward.

The potential shutdowns could significantly shrink Meritage’s restaurant portfolio. If all 60 proposed closures are approved, the operator would lose a substantial portion of the 314 Wendy’s locations it operated when it entered bankruptcy.

Wendy’s Is Facing a Bigger Challenge

The difficulties extend beyond a single franchise operator.

Wendy’s has also announced plans to close hundreds of underperforming U.S. restaurants as part of a broader effort to improve profitability and strengthen its remaining locations. The chain has struggled with declining sales and customer traffic for multiple consecutive quarters.

The pressure has intensified as consumers become more cautious about spending and competitors fight harder for customers. Wendy’s has also lost its long-held position as America’s second-largest burger chain to Burger King.

For customers, the biggest concern is uncertainty over which neighborhood restaurants may disappear next. For employees and communities, additional closures could mean lost jobs and fewer convenient dining options.

Although not every proposed closure is final, the situation highlights the challenges facing even major restaurant operators in today’s competitive fast-food market.

The bottom line: Wendy’s is confronting a difficult turnaround, and the bankruptcy of a major franchisee could bring more restaurant closures in the weeks ahead. Customers should wait for official announcements before assuming their local Wendy’s will shut down.