Hamburger bust.
A franchisee of a 40-year-old hamburger chain has declared bankruptcy amid declining sales.
Checkers and Rally franchisee Global Midsouth Holding Corp. filed for Chapter 11 bankruptcy after receiving a foreclosure notice on its Jackson, Tennessee, restaurant.
The Memphis-based debtor filed for bankruptcy protection on October 28, 2026, in the U.S. Bankruptcy Court for the Western District of Tennessee.
The filing imposed an automatic stay of all legal actions against the debtor while the case proceeds.
Founded in 1986, Checkers Drive-In Restaurants now operates more than 700 locations throughout the Eastern, Midwest, Southeast and Western United States.
Rally’s, once a competitor to Checkers, was acquired and merged into the brand in 1999.
Under its franchise model, Checkers and Rally’s allows operators to build on parcels smaller than half an acre, about half the footprint required by competing drive-thru chains.
In its petition, Global Midsouth listed $1.9 million in assets and $1.3 million in liabilities. The petition lists two unsecured creditors: $3,400 owed to the Tennessee Department of Revenue and $2,500 owed to Madison County Waste Disposal.
Revenue has declined over the past two years, from $860,000 in total revenue in 2024 to $800,000 in revenue in 2025.
The company only reported $582,000 in 2026 revenue through the filing date.
Sedrick Turner, owner of Global Midsouth, has been a Checkers and Rally franchisee for nearly thirty years. During this period, it expanded its restaurant portfolio to 16 locations in Alabama, Missouri, Mississippi and Tennessee.
“With every restaurant we operate, we aim to enhance the guest experience, strengthen our team and serve the surrounding community,” Turner said in a statement. “I have spent more than three decades building and leading franchise operations, and I believe success comes from staying on the ground, empowering your people, and delivering consistent quality. »
Robert Bhagwandat, senior director of franchise development at Checkers Drive-In Restaurants, has previously praised Turner’s business acumen.
“Sedrick is the kind of franchisee every brand hopes to attract – experienced, driven and deeply committed to people and performance,” Bhagwandat said in 2024.
“He understands what it takes to run great restaurants and grow with determination,” he added.
In July, Checkers Drive-In franchisee CS Holdings of Tampa LLC, which operates two locations in Tampa, Florida, also filed for Chapter 11 bankruptcy protection.
Because Checkers Drive-In Restaurants Inc. licenses its brand to independent owner-operators, the franchisor company is not affected by the bankruptcy filing.
Global Midsouth’s slowdown follows the announcement by one of Wendy’s largest franchisees — Meritage Hospitality Group — of filing for bankruptcy in September and plans to close at least 20 locations.
Court records detail that the Michigan-based company removed 33 restaurants from its portfolio, including 20 in September and another 13 in October.
In total, Meritage – originally a hotel company – closed around 60 underperforming stores Before filing for bankruptcy in September. These streams began in the fourth quarter of last year.
That means the company has lost about 93 locations in total since last year.
While many attribute these closures and filings to rising food costs and a runaway economy, one commenter has a different view of the fate of fast food.
“Many of these food companies are going out of business largely because of low-quality, sawdust-like food of terrible quality. And a terrible lack of innovation,” they wrote.
“Also, CHANGE YOUR COOKING OIL ONCE IN A BLUE MOON! It can’t be blamed on the same old tired refrain that ‘costs are going up,'” they added.
Gn bussni
