Operator of 314 Wendy’s Restaurants in the U.S. Files for Bankruptcy
· Telemundo McAllen (KTLM)
One of the largest Wendy’s franchisees in the United States has sought bankruptcy protection after the restaurant chain attempted to terminate its franchise agreement. Meritage Hospitality Group, which operates 314 Wendy’s locations across 15 states, stated in a press release last week that it intends to continue operating its restaurants and paying its 9,000 employees during the bankruptcy process. Meritage, based in Grand Rapids, Michigan, filed for bankruptcy in a federal court in western Michigan on September 17. According to court documents, Wendy’s issued a notice to terminate the company’s franchise agreement 'effective immediately' on September 16. The documents filed in court indicate that Wendy’s claims Meritage owes $27.4 million in royalties and fees, and $119.5 million in ongoing operational fees, which companies charge franchisees when they close locations. Meritage closed 60 underperforming Wendy’s restaurants at the end of last year as part of a restructuring.
AI summary · Source: Telemundo McAllen (KTLM) →
