Major Wendy's franchisee files for bankruptcy

Meritage Hospitality Group, one of the largest Wendy’s franchisees in the U.S., has filed for Chapter 11 bankruptcy protection following a high-stakes dispute with the fast-food chain's corporate parent. The bankruptcy filing comes amid severe financial pressures at the franchisee, which has struggled with soaring beef costs and weak customer traffic, while Meritage has also blamed aggressive promotional discounting for squeezing margins. The Michigan-based operator runs 314 Wendy's locations across 15 states. The company filed its voluntary petition Thursday with the U.S. Bankruptcy Court for the Western District of Michigan, according to court documents. THE FAST-FOOD CHAIN WHERE MANAGERS AVERAGE MORE THAN $200K A YEAR The bankruptcy filing came one day after Wendy's franchising unit delivered a Sept. 16 notice seeking to terminate Meritage's franchise rights and lease occupancy "effective immediately," according to court documents.