Burger bust.
A franchisee of a 40-year-old burger chain has declared bankruptcy amid sinking sales.
Checkers and Rally’s 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 Oct. 28, 2026, in the U.S. Bankruptcy Court for the Western District of Tennessee.
The filing imposed an automatic stay on all legal actions against the debtor while the case progresses.
Founded in 1986, Checkers Drive-In Restaurants now operates more than 700 locations across the Eastern, Midwestern, Southeastern, and Western United States.
Rally’s, once a competitor of Checkers, was acquired by and merged with the brand in 1999.
Under its franchise model, Checkers and Rally’s allows operators to build on parcels smaller than half an acre, roughly half the footprint required by rival drive-thru chains.
In its petition, Global Midsouth listed $1.9 million in assets and $1.3 million in liabilities. The petition listed two unsecured creditors: $3,400 owed to the State of Tennessee Department of Revenue and $2,500 owed to Madison County Waste Disposal.
Revenues have declined over the last two years, from $860,000 in total revenue in 2024 to $800,000 in revenue in 2025.
The company reported only $582,000 in revenue in 2026 through the filing date.
Sedrick Turner, the owner of Global Midsouth, has been a Checkers and Rally’s franchisee for nearly thirty years. In that time, he expanded his restaurant portfolio to 16 locations in Alabama, Missouri, Mississippi, and Tennessee.
“With every restaurant we operate, we aim to elevate the guest experience, strengthen our team, and serve the surrounding community,” Turner said in a statement. “I’ve spent over three decades building and leading franchise operations, and I believe success comes from staying hands-on, empowering your people, and delivering consistent quality.”
Robert Bhagwandat, Checkers Drive-In Restaurants’ senior director of franchise development, previously praised Turner’s business acumen.
“Sedrick is the kind of franchisee every brand hopes to attract — experienced, driven, and deeply committed to both people and performance,” Bhagwandat said in 2024.
“He understands what it takes to run great restaurants and grow with purpose,” he added.
In July, Checkers Drive-In franchisee C.S. Holdings of Tampa LLC, which operates two locations in Tampa, Fla., also filed for Chapter 11 bankruptcy protection.
Because Checkers Drive-In Restaurants Inc. licenses its brand to independent owner-operators, the corporate franchisor is unaffected by the bankruptcy filing.
Global Midsouth’s downturn follows one of the largest Wendy’s franchisees — Meritage Hospitality Group — announcing a September bankruptcy filing and plans to close at least 20 locations.
Court filings specify the Michigan-based company has deleted 33 restaurants from its portfolio, including 20 in September and another 13 in October.
All told, Meritage — originally a hotelier — closed about 60 underperforming stores before filing for bankruptcy in September. Those shutters began in Q4 of last year.
This means the company has lost about 93 locations in total since last year.
While many ascribe these closures and filings to rising food costs and a drain-circling economy, a commenter had a different take on the fate of fast food.
“Many of these corporate food entities are closing in large part due to crappy, sawdust-like, deplorable quality food. And terrible lack of innovation,” they wrote.
“Also, CHANGE YOUR COOKING OIL ONCE IN A BLUE MOON! Can’t blame it on the same old tired refrain that ‘costs are up,’” they added.
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