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 restaurantsbecause the Wendy's franchise agreements ended on Aug. 18, 2026, before the company filed for bankruptcy.
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. Nine locations are at risk in the surrounding Tennessee suburbs.
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.
Arlington
- 9981 Highway 64
Atoka
- 11257 Highway 51 S.
Bartlett
- 5998 Stage Road
- 7920 Highway 64
Collierville
- 714 W. Poplar Avenue
Cordova
- 815 Germantown Pkwy
- 8092 Rockcreek Cove
- 1252 N. Houston Levee Road
Covington
- 802 Hwy. 51 North
Dyersburg
- 2485 Lake Drive
Germantown
- 7569 Poplar Avenue
- 9197 Poplar Avenue
Jackson
- 1912 Highland Avenue
- 1646 S. Highland
- 873 Vann Drive
Memphis
- 1593 Union Avenue
- 2099 Whitten Road
- 2186 Covington Pike
- 2811 Getwell
- 2845 Kirby Parkway
- 315 Washington Street
- 3979 New Covington Pike
- 3990 S. 3rd Street
- 4290 Elvis Presley Blvd.
- 6143 Walnut Grove Road
- 6781 E. Shelby Drive
- 749 South Highland
- 7928 Winchester Road
- 4605 Poplar Avenue
- 6156 Macon Road
- 6260 Winchester Road
- 2177 Frayser Blvd.
- 4431 Summer Avenue
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:
Horn Lake, Mississippi
- 718 Goodman Road West
- 6965 Penny Lane
Marion, Arkansas
- 3262 I-55 Service Road
Southaven, Mississippi
- 880 Stateline Road
- 415 Goodman Road
West Memphis, Arkansas
- 1100 Martin Luther King Blvd.
- 1551 N. Missouri Street
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 Niña 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:
- Historically low herd levels.
- A shutdown of Mexican border beef imports due to disease.
- Tariffs on beef from South America, leading to an 18.9% increase in the company's average cost of beef compared to the previous year.
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.
USA TODAY contributed to this report.
Jordan Green covers trending news for The Commercial Appeal and Tennessee. She can be reached at jordan.green@commercialappeal.com.
This article originally appeared on Memphis Commercial Appeal: Memphis area could lose nearly all Wendy's locations after bankruptcy filing
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