Operator of 314 US Wendy's locations files for bankruptcy protection – ABC News – Breaking News, Latest News and Videos

Operator of 314 US Wendy’s locations files for bankruptcy protection  ABC News – Breaking News, Latest News and Videos

One of Wendy’s largest U.S. franchisees has filed for bankruptcy protection after Wendy’s tried to terminate its franchise agreement One of Wendy’s largest U.S. franchisees has filed for bankruptcy protection after Wendy’s tried to terminate its franchise agreement. Meritage Hospitality Group, which operates 314 Wendy’s restaurants in 15 states, said in a statement last week it intends to keep operating its restaurants and paying its 9,000 employees during the bankruptcy process. Grand Rapids, Michigan-based Meritage filed its bankruptcy petition in federal court in western Michigan on Sept. 17. According to court documents, Wendy’s filed a notice of termination of the company’s franchise agreement “effective immediately” on Sept. 16. Wendy’s claims Meritage owes $27.4 million in royalties and fees and $119.5 million in continuous operations fees, which companies charge to franchisees when they close locations, according to court filings.

Meritage closed 60 underperforming Wendy’s locations late last year as part of a restructuring. Asked for comment Monday on Meritage, Wendy’s said its focus is “strengthening the long-term health of the brand.” “We partner closely with franchisees that are experiencing challenges to support them and evaluate each situation on a case-by-case basis to identify the best and most sustainable path forward,” the company said. Michigan is Meritage’s largest market; it operates 54 Wendy’s locations there as well as five Morning Belle and