Story perspectives

Meritage Hospitality Files Chapter 11 as Wendy’s Ends Franchise

By Drooid · Sep 23, 2026, 6:16 PM UTC · How we work

Summary

Meritage Files Bankruptcy

Meritage Hospitality Group filed Chapter 11 bankruptcy in Michigan’s Western District on Sept. 17, 2026.
Wendy’s terminated Meritage’s franchise agreement effective Sept. 16, 2026, citing unpaid royalties.
Meritage owes Wendy’s about $147 million in past-due royalties, fees and continuous-operations charges.
Store-level EBITDA fell 48 % in 2025, its lowest in three decades.
Same-store sales dropped 11.3 % in Q4 2025 and 7 % in the latest quarter.

Summary

Wendy's Revives Packaging

Wendy’s launched a five-point turnaround plan in August 2026 to halt sales declines.
The chain will reintroduce its iconic bright-yellow packaging nationwide beginning Sept. 28 2026.
Chief Marketing and Customer Growth Officer Tariq Hassan said fan demand drove the packaging return.
The White House posted social-media comments about the nostalgic packaging comeback.

History

Historical Context

Sizzler, founded in 1958 by Del and Helen Johnson in Culver City, expanded to over 270 U.S. sites before financial strain hit. After accumulating roughly $100 million in debt, the chain entered Chapter 11 in 1996, emerged 1997, and faced a second COVID-related filing in 2020, emerging again in 2023. These cycles mirror the broader casual-dining consolidation seen with investors such as Pacific Equity Partners.

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Meritage Files Bankruptcy

Meritage Hospitality Group filed Chapter 11 bankruptcy in Michigan’s Western District on Sept. 17, 2026.
Wendy’s terminated Meritage’s franchise agreement effective Sept. 16, 2026, citing unpaid royalties.
Meritage owes Wendy’s about $147 million in past-due royalties, fees and continuous-operations charges.
Store-level EBITDA fell 48 % in 2025, its lowest in three decades.
Same-store sales dropped 11.3 % in Q4 2025 and 7 % in the latest quarter.

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