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Wendy's Is Closing 41 More Locations Due to Franchise Bankruptcy (Is Yours One?)

Yet another fast food juggernaut is struggling with closures.

By Amanda Machado , Edited by Calista Headrick

Updated Oct. 21, 2026

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Wendy's regulars, listen up, as your drive-thru may be at risk. Following a major franchisee's bankruptcy, 41 Wendy's locations are slated to close, adding to the chain's recent string of not-so-good news. It reminds us that even well-established fast-food joints aren't immune to financial troubles.

In some ways, it's not surprising. The franchise market has been tough lately, thanks to the challenge of keeping profits high enough to withstand economic downturns while facing rising costs. Here's what we know about the closures and why Wendy's is having such a tough time.

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Who is Meritage Hospitality Group?

Meritage Hospitality Group didn't start out as the major Wendy's franchisee it is today. Founded in Michigan in 1986, it originally owned three hotels before selling them in 1998 and buying 28 Wendy's restaurants in its home state.

From there, Meritage went all-in on fast food. By 2009, it had pushed beyond Michigan with 20 Wendy's locations in Florida. The portfolio kept growing from there, with locations in multiple states today.

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A look at the numbers

Meritage Hospitality Group helms 314 Wendy's restaurants in 15 states. But the company recently hit a financial rough patch, filing for Chapter 11 bankruptcy in mid-September.

After striking a cash collateral agreement with its lenders (who are owed over $135 million), Meritage said it would shutter a minimum of 30 restaurants that aren't hitting profit goals. That accounts for approximately 10% of its Wendy's locations.

The first five doomed locations

The first five Wendy's locations scheduled to close are spread across five cities, so this isn't a one-town story.

The restaurants at 441 Market St. in Gordonsville, Virginia; 1175 Dunn Ave. in Jacksonville, Florida; 301 College Ave. in Levelland, Texas; 2525 South Monroe St. in Tallahassee, Florida; and 2420 W. Main St. in Durant, Oklahoma, shut off the lights on the weekend of September 25.

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Which locations are next?

The full list of future closures hasn't been released, other than those that have already been identified, with restaurants in several states already gone.

Meritage has scheduled 41 closures, with at least 30 required by October 16 and some North Carolina locations slated to close later. For now, there's no official list of what's next, so you may have to watch local updates and Wendy's listings for clues. If it's owned by Meritage Hospitality Group, you may want to be wary.

Wendy's was already struggling

These closures aren't new. In fact, Wendy's announced in November of 2025 that it had plans to shutter approximately 300 locations "that do not elevate the brand," according to Interim CEO Ken Cook.

The year prior, the company shared intentions to close 140 restaurants. However, this was in tandem with the opening of newer locations that were expected to perform better, so it wasn't all bad news.

How is Wendy's stock performing?

Wendy's stock has had a rough year, falling about 24% so far in 2026 and roughly 27% over the past year.

Then came the Meritage fiasco, which wasn't exactly a confidence boost for those watching the market. Shares dropped nearly 4% after news broke that Meritage had filed for Chapter 11.

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The reasons for the slumping sales

Wendy's sales slump isn't coming from one bad quarter or a single rough patch. Beef prices have soared, making it more expensive to run the restaurants, while brutal winter weather reportedly kept customers home.

Meritage also pointed to the "reduced frequency and effectiveness of Wendy's brand marketing," which sounds like corporate-speak for the ads not quite landing like they used to. Altogether, they all add up.

Has Wendy's strayed from its original success?

In addition to the reasons cited by corporate leadership, some have argued that Wendy's lagging business is due to two factors: the loss of former CEO Dave Thomas' visionary leadership and overcomplicating the menu.

Thomas kept the menu simple and affordable, all while innovating service flow. And recent menu additions have resulted in a glut of similar products, like chicken nuggets, chicken tenders, multiple chicken sandwiches, and more.

What will happen to employees?

For Meritage Hospitality Group's roughly 9,000 employees, there are arguably more questions than answers. The company initially said it planned to keep paying workers while it works through bankruptcy, which is some welcome stability amid the uncertainty.

But with more than 40 underperforming Wendy's locations set to close, some jobs could eventually be affected. Meritage hasn't said how many positions may disappear, so the outcome remains murky.

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Bottom line

For Wendy's fans, the Meritage Hospitality Group bankruptcy is one of those stories that can turn a fast food run into a quick lesson in how complicated the restaurant business actually is. Some locations will close, some won't, and the full story is yet to be written.

If your neighborhood Wendy's is on this list, it may be time to find a new lunchtime spot. And if the whole saga has you thinking about your own finances, it's never a bad time to look for ways to get ahead financially.

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FAQs

Is Wendy's going out of business?

The reported closures do not mean the entire chain is shutting down. Meritage Hospitality Group, a franchise operator, filed for bankruptcy and plans to close underperforming restaurants within its portfolio.

How can I find out whether my local Wendy's is closing?

Check local news reports, look for notices at the restaurant, and call before making a trip. Online listings may lag behind closures: some of the first affected restaurants still appeared open on Google and Wendy's store locator around their scheduled closing date.

When are the Wendy's closures expected to happen?

Court documents identified September 25 as the closing date for the first five restaurants, with additional closures scheduled on a rolling basis through October 16, 2026. A complete list of affected locations was not included in that reporting.