Another fast-food franchisee has filed for bankruptcy, becoming the latest casualty of mounting financial pressures squeezing restaurant operators across the United States.
Global Midsouth Holding Corp., a franchisee of Checkers and Rally's, filed for Chapter 11 bankruptcy protection on October 28, just one day before a scheduled foreclosure auction involving one of its Tennessee restaurant properties, according to TheStreet.
The Memphis-based company reported $1.9 million in assets against $1.3 million in liabilities. Revenue fell from $860,000 in 2024 to $800,000 in 2025, underscoring the financial difficulties facing the business.
However, Global Midsouth isn't the only burger franchisee that went bust.
Meritage Hospitality Group, one of Wendy's largest franchisees, filed for bankruptcy in September after struggling with declining sales, rising beef prices, and mounting financial obligations.
The operator, which ran 314 Wendy's restaurants across 15 states when it filed, had already shuttered 60 underperforming locations. Another 60 restaurants could shut down by mid-November, according to court documents.
The bankruptcies come as the restaurant industry faces even bigger problems.
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