Sept. 23, 2026Updated Sept. 24, 2026, 8:54 a.m. CT
This story has been updated to include comment from Wendy's and a list of stores that are not at risk of closing.
West Tennessee could soon lose 34 Wendy's locations after a franchisee filed for bankruptcy.
Meritage Hospitality Group, Inc. and related entities filed Chapter 11 bankruptcy cases on Sept. 17, 2026. Meritage operated 376 Wendy's restaurants across multiple states through franchise agreements with Quality Is Our Recipe, LLC, the Wendy's franchisor.
In an objection filed by Quality Is Our Recipe against Meritage's first-day bankruptcy motions, QIOR argues that Meritage should not be allowed to continue operating the restaurants because the Wendy's franchise agreements ended on Aug. 18, 2026, before the company filed for bankruptcy.
"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," Heidi Schauer, Vice President, Communications, Public Affairs & Customer Care at Wendy's, wrote in an email. "At this time, we do not anticipate a disruption to restaurant operations."
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Currently, Wendy's corporate does not anticipate significant restaurant closures. If Meritage does not emerge from bankruptcy or maintain ownership of its current restaurants, Wendy's could find a new operator for the Memphis locations.
Here are the locations at risk of closing in Tennessee.
Which Tennessee Wendy's locations are at risk of closing?
The complaint lists 34 locations in Tennessee. All 34 locations are located in the western part of the state and are largely in the Memphis area.
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In Memphis proper, 18 locations are listed as the property of Wen Tennessee, LLC, of which Meritage Hospitality Group is a guarantor. The objection also lists nine locations in the surrounding Tennessee suburbs as operated by Meritage.
"We do not anticipate a disruption to restaurant operations, including in Memphis, and Wendy’s goal is to keep as many restaurants open to continue to serve our customers," Schauer wrote. "If the best solution is for a franchise organization to exit the system or reduce the number of restaurants it operates, we will be at the table to help facilitate a transition to a new operator for those restaurants."
Some locations have already closed as of late September, but the company still owns the properties and therefore lists them in the complaint. Locations listed in bold are still in operation according to the Wendy's store list.
Also at risk of closing are locations in North Mississippi and West Arkansas. Here are the locations at risk that are the closest to Memphis:
Which Wendy's locations will remain open?
According to the Wendy's store list, several locations in the area are not owned by Meritage Hospitality Group and are not at risk of closure or a potential change in ownership in the coming months.
These locations are:
Why did a Wendy's franchisee file for bankruptcy?
Part of the reason for the bankruptcy filing was an 11.3% decrease in same-store sales during the final quarter of 2025 and unusual winter weather linked to the La Nin?a cycle in the southern United States, which impacted sales, the company said in court documents.
The company also cited reduced effectiveness of Wendy’s brand marketing, which Wendy’s previously managed.
The company also noted that it filed for bankruptcy due to record U.S. beef prices tied to:
The company has 8,850 employees and has asked for permission to pay wages, other compensation, reimbursable expenses, and continue honoring its Employee Benefits Programs, according to court documents.
The company has also asked for permission to continue honoring Wendy’s gift cards and loyalty programs.
Will these locations close?
Wendy's franchisor, Quality Is Our Recipe, LLC, has alleged that Meritage should not be allowed to continue operating any locations because it no longer has the rights to operate under the Wendy's name.
On Sept. 16, 2026, Wendy's issued a formal termination notice. The following day, Meritage Hospitality Group filed for bankruptcy, resulting in the loss of its valid franchise rights, according to Wendy's.
Quality Is Our Recipe claims that Meritage owed $27.4 million in past-due obligations as of the bankruptcy filing, plus an additional $119.5 million in "continuous operations fees" and other contractual damages due to franchise termination.
Wendy's stated it would consider granting Meritage a temporary post-petition license to allow brief operations, transition stores to Wendy's or other franchisees, and wind down operations in an orderly manner.
The termination notice requires franchisees to stop using Wendy's branding, remove signs and advertising, return confidential materials, change restaurant identities if Wendy's does not reacquire them, and adhere to non-compete and confidentiality obligations.
Wendy's does not currently anticipate closures in the Memphis area.
USA TODAY contributed to this report.
Jordan Green covers trending news for The Commercial Appeal and Tennessee. She can be reached at [email protected].
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