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Wendy's Is Closing More Restaurants as 42 Locations Face Ownership Changes (Is Yours One?)

A proposed $18.6 million sale could keep dozens of restaurants operating, even as more closures loom.

By Amanda Machado , Edited by Calista Headrick

Updated Oct. 22, 2026

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Wendy's fans have had plenty of closure news to digest lately, but the latest development offers a little more hope for some familiar drive-thrus. A buyer has stepped forward with a proposal to purchase 42 restaurants from bankrupt franchise operator Meritage Hospitality Group.

The proposed $18.6 million deal covers locations in four states, with plans to keep the restaurants operating. It still needs court approval, so nobody should count their Frostys just yet. But it offers a possible path forward while other Meritage locations face shutdowns — a reminder that even familiar restaurant brands aren't guaranteed to withstand economic downturns.

Here's what we know about the potential purchase, the closures still ahead, and why another fast-food franchise operator's bankruptcy offers a useful comparison.

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A buyer steps forward

Hiren Patel, owner of Divine Investors, is proposing to buy the restaurants through affiliated companies, according to an October 21 report from Nation's Restaurant News. His business already operates Dunkin' and KFC locations.

The plan is to continue running the 42 Wendy's restaurants. If approved, the transaction could close by late November.

For customers, that could mean an ownership change behind the scenes while their usual lunch stop stays in business.

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Which states are included?

The proposed purchase covers Wendy's restaurants in Arkansas, Tennessee, Mississippi, and Missouri.

However, living in one of those states doesn't automatically mean your neighborhood Wendy's is part of the deal. Customers will need information tied to their specific restaurant before knowing whether it's included.

The same goes for earlier closure coverage: The proposed purchase doesn't establish that these 42 restaurants were previously scheduled to shut down.

More closures are still coming

The potential sale doesn't put an end to Meritage's shutdown plans.

An October 15 bankruptcy court order sets a schedule for closing between 20 and 60 restaurants that have negative EBITDA or are deemed to have negative value. EBITDA measures earnings before interest, taxes, depreciation, and amortization.

Nation's Restaurant News reported on October 20 that Meritage had already closed 33 locations since late September.

That leaves different restaurants facing different possibilities, from a new owner to a permanent closure.

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The next dates to watch

The court order lays out four closure deadlines: October 23 and 30 and November 6 and 13.

The schedule calls for five to 15 restaurants to close by each deadline. Changes require the administrative agent's written agreement and prior written notice to the creditors' committee.

For customers, that means the changes could continue over several weeks. One round of closures being finished doesn't necessarily mean the restructuring is finished, too.

Why Meritage needs a reset

The operator's financial trouble didn't begin with its bankruptcy filing.

Restaurant Dive reported that Meritage's revenue dropped from about $669 million in 2024 to $618 million in 2025. The company also went from roughly $8 million in net income to a nearly $32 million net loss over that period.

Higher beef costs and pressure from discounting contributed to the squeeze, according to the outlet's reporting on court filings. Meritage had already closed about 60 underperforming restaurants before seeking bankruptcy protection.

Selling restaurants would give the operator another way to bring in cash while reducing the size of its business.

A Popeyes franchisee faced a similar shake-up

Wendy's customers aren't the only ones watching a franchise bankruptcy reshape their dining options.

Popeyes operator Sailormen entered bankruptcy with 136 restaurants. Its restructuring ultimately involved selling 97 locations and closing 39 it couldn't sell.

That outcome shows how a franchise operator's financial collapse can produce very different results from one neighborhood to the next. Some restaurants get another chance under new ownership, while others stop serving customers altogether.

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Finding a buyer is only one step

Sailormen's experience also shows why a proposed purchase shouldn't be mistaken for a completed deal.

An initial buyer failed to close on 23 Orlando-area Popeyes restaurants, requiring a replacement transaction. A judge approved the replacement sale to SBH Foods PLK LLC on July 23, 2026.

For the Wendy's locations in the proposed purchase, the next developments to watch are approval and closing. Until then, continued operation under new ownership remains the plan rather than a completed outcome.

How to check your local Wendy's

If your usual restaurant is part of your weekly routine, look for updates that identify its address.

Check local reporting and notices posted at the restaurant, and call before making a special trip. Being near another Wendy's that closed doesn't establish what will happen to yours.

It's also worth keeping ownership changes separate from closure announcements. A restaurant being sold could still be serving the same customers after the transaction.

Bottom line

The latest development gives some Wendy's customers a reason for cautious optimism: A buyer wants to keep 42 restaurants operating while their current owner works through bankruptcy. Still, the proposed purchase comes alongside more scheduled closures.

For now, check on your specific location before heading out. And if a closure sends you searching for a new lunch spot, compare the full cost of your replacement meal. A longer drive or a delivery fee can add up, especially when you're trying to get ahead financially.

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