Wendy’s subsidiary challenged Meritage’s operating plans

Quality Is Our Recipe (QIOR), a Wendy’s subsidiary, challenged Meritage Hospitality Group’s request for early bankruptcy relief in a September 21 filing, Restaurant Dive reported on September 22.

According to the report, QIOR argued that Meritage lacked the right to operate 314 Wendy’s after franchise agreements were terminated September 16 over more than $27 million in overdue royalty, advertising and other fees.

If the court rejected Meritage’s requests, QIOR said it would consider a temporary license while restaurants transferred to Wendy’s or other franchisees and Meritage wound down, the outlet reported. If the requests were granted, QIOR sought timely payments under an interim license on the former agreements’ terms.

Meritage had announced on September 17 that it filed for Chapter 11 in Michigan’s Western District and intended to maintain restaurant operations during restructuring. The company said it was seeking financing to support the business through the bankruptcy process, together with cash generated by operations. Its portfolio spanned 15 states and included one Bojangles and five independently branded concepts alongside its Wendy’s restaurants.

At that time, Meritage said it intended to continue paying approximately 9,000 employees’ wages and benefits without interruption, subject to court approval. Its planned requests also covered customer programs and other operating needs. It said it intended to pay suppliers for goods and services provided on or after the filing date.

The public docket reproduced by Inforuptcy, checked September 25, lists an order signed September 23 authorizing payment of wages and other compensation owed before the filing, along with continuation of employee benefit programs.

The listing also records September 23 orders concerning existing customer programs and interim authorization to continue the company’s cash-management system and maintain bank accounts.

QSR.pro has not reviewed the underlying objection or full orders, so this report does not establish a decision on franchise rights or the restaurants’ current operating status.