INDIANA — The future of 13 northern Indiana Wendy’s fast-food locations remains uncertain following a Chapter 11 bankruptcy filing by Meritage Hospitality Group, one of the fast-food giant’s largest franchise operators.
Meritage Hospitality Group, which operates 314 stores across 15 states, officially filed for Chapter 11 protection in the United States Bankruptcy Court for the Western District of Michigan on Sept. 17. The filing has triggered a legal standoff between the franchisee and Wendy’s corporate leadership over millions in unpaid fees and the right to continue operating under the brand’s name.
The Wendy’s at 1101 16th Street in Bedford, at 3132 State Road 60 in Mitchell, is operated by a different franchise group, so its operations, hours, and ownership are completely unaffected by this court filing.
Corporate Dispute and Franchise Agreement Termination
Court documents show that Meritage owes Wendy’s International nearly $25 million. In a subsequent court filing on Sept. 21, Wendy’s operating company, Quality Is Our Recipe LLC, stated that Meritage actually owes $27.4 million in overdue royalties, advertising expenses, and fees dating back to 2025.
Wendy’s corporate reported that it formally terminated its franchise agreement with Meritage on Sept. 16—one day prior to the bankruptcy petition. The termination theoretically revokes Meritage’s authorization to operate its 314 locations as Wendy’s restaurants, though the immediate operational impact remains under review by the bankruptcy court.
Heidi Schauer, vice president of communications, public affairs, and customer care for Wendy’s, said this franchise organization and its lenders have tried for more than a year to find a sustainable path forward; however, termination was the appropriate course of action.
She added that corporate leadership does not anticipate immediate disruptions to restaurant operations as proceedings move forward.
Which Indiana Wendy’s Locations Are Affected?
While all 13 affected Indiana locations currently remain open and operational, court records indicate their long-term status will depend on court proceedings, potential restructuring, or sale to another operator.
The Meritage-owned Indiana locations subject to the bankruptcy filing include:
- Chesterton: 748 Indian Boundary Pike
- Elkhart: 1720 N. Cassopolis Street
- Elkhart: 2929 Ferndale Road
- Elkhart: 301 West Hively
- Goshen: 900 W. Pike Street
- Griffith: 101 East Ridge Road
- La Porte: 1202 Lincolnway West
- Merrillville: 8105 Merrillville Road
- Michigan City: 3715 S. Franklin Street
- Portage: 6335 Ameriplex Drive
- Portage: 2675 Willowcreek
- Portage: 6181 US Highway 6
- Valparaiso: 1504 N. Calumet
Meritage attributed its financial strain to a combination of declining sales, severe weather, and rising operational supply costs, including:
- Sales and Weather: An 11.3% drop in same-store sales during the fourth quarter of 2025, alongside severe winter weather patterns linked to La Niña across southern markets.
- Beef Price Spikes: An 18.9% year-over-year increase in average beef purchasing costs, driven by historically low U.S. cattle herd numbers, import halts on Mexican beef due to disease concerns, and tariffs on South American beef imports.
- Marketing Performance: A reported decline in the effectiveness of nationwide brand marketing campaigns previously managed by corporate leadership.
Meritage, which employs approximately 8,850 workers systemwide, has filed motions with the bankruptcy court seeking authorization to continue paying employee wages, honoring existing compensation and benefits programs, and accepting standard Wendy’s gift cards and customer loyalty rewards across its stores during restructuring.
