2026 closure comparison: the numbers
The table below tracks confirmed closures from public earnings reports, court filings, and press coverage as of June 2026. Counts are directional — many brands report ranges or targets rather than finalized lists.
| Brand | Closures | Primary driver | Buyer angle |
|---|---|---|---|
7-Eleven North America · 2024–2026 ongoing | 645 | Portfolio optimization; parent Seven & i restructuring ahead of delayed IPO; underperforming urban and fuel sites | Territory re-opening in dense urban markets; Speedway integration creates refranchising candidates |
GameStop U.S. · Announced Q1 2026 | 400+ | Retail traffic decline; shift to digital distribution; new CEO turnaround plan focuses on collectibles and smaller-format stores | Limited franchise angle — mostly corporate stores; watch for lease/asset sales in strip-center locations |
Wendy's U.S. · 2026–2027 | 298–358 | Underperformer pruning; new CEO Bob Wright (ex-Potbelty) portfolio review; design-age and sales-volume thresholds | Distressed resale inventory likely; watch for territory re-opening in secondary markets; diligence why specific units failed |
Papa Johns Global · 2026–2027; 200 in 2026 | ~300 (200 in 2026) | North America comp-sales decline; international market exits; post-CEO-transition portfolio rationalization | Closing units may signal oversaturated pizza markets; verify territory density before buying into nearby locations |
Jack in the Box U.S. · 2026 | 150–200 | Post-Del Taco sale portfolio cleanup; underperforming legacy locations; California wage pressure | California closures may re-open territories for competitors; Del Taco integration risk for remaining operators |
Carl's Jr. California · 2026 | 49 | Sun Gir LLC franchisee liquidation; cited California $20/hr minimum wage as primary factor | Franchisee bankruptcy creating bulk site availability in California; wage economics remain the structural question |
Noodles & Co. U.S. · 2026 | 30–35 | Underperforming suburban locations; menu simplification strategy; shift to smaller-format and catering-forward model | Small count but indicates fast-casual segment stress; watch for adjacent brand closures in same strip centers |
Red Robin U.S. · 2026 | 30 (refranchised) | Refranchising 30 company-owned units at ~$783K/unit; reducing corporate-operated footprint | Refranchised units at $783K may be below replacement cost; diligence four-wall economics and lease terms before buying |
7-Eleven: the largest single closure program
Seven & i Holdings is closing 645 North American stores as part of a multi-year restructuring ahead of its delayed North American IPO. The closures target underperforming urban sites and legacy fuel locations that do not fit the food-first, fresh-grab-and-go model the chain is building.
For franchise buyers, the 7-Eleven closures matter because they free up territory in dense urban markets where convenience-store competition is fierce. If you are evaluating a c-store franchise, check whether recently closed 7-Eleven locations overlap your target trade area. The answer changes your competitive density, available traffic, and lease negotiation leverage.
Wendy's: new CEO, portfolio cleanup
Wendy's plans to close 298–358 U.S. units under new permanent CEO Bob Wright, named May 20, 2026 after serving as interim chief. The closure program targets locations that fall below design-age, sales-volume, and remodel-cost thresholds — essentially, units that would cost more to update than they can earn back.
Buyer diligence angle: Wendy's closures will create a wave of distressed resale inventory as franchisees exit underperforming locations. Check Wendy's franchise cost and profit profile to understand what a viable unit should look like, and compare against any resale opportunity in a closing territory. The gap between the brand's target unit economics and a closing unit's actual performance is your negotiation room.
Papa Johns: 300 units, global scope
Papa Johns is closing approximately 300 units globally by 2027, with about 200 in 2026. North America comp-sales are declining, and international markets are being pruned to focus on high-performing regions. The closure program follows a CEO transition and broader strategic reset.
Pizza is a saturated category. Before buying any pizza franchise territory, check whether a Papa Johns closure nearby reflects market-level weakness (no one wants pizza there) or brand-level weakness (they chose the wrong pizza). The first is a structural problem; the second may be your opportunity.
Jack in the Box and Carl's Jr.: California wage pressure
Jack in the Box is closing 150–200 units following the sale of Del Taco, cleaning up a portfolio that over-expanded through acquisition. Carl's Jr. lost 49 California locations when franchisee Sun Gir LLC liquidated, citing the state's $20/hr fast-food minimum wage as the primary driver.
California closures are a structural story, not a cyclical one. If a location closed because labor costs made it unprofitable at current menu prices, the math does not change for the next operator unless you bring a lower-cost operating model (smaller format, different labor mix, higher throughput per employee).
GameStop: retail format collapse, limited franchise angle
GameStop is closing 400+ stores as part of a turnaround plan focused on collectibles and smaller-format locations. Most GameStop locations are corporate-owned, which limits direct franchise opportunity. The franchise angle here is indirect: strip-center landlords losing GameStop tenants may be motivated to negotiate with replacement tenants, including franchise operators in adjacent categories.
Red Robin: refranchising, not closing
Red Robin is refranchising 30 company-owned units at approximately $783K per unit — below replacement cost for a full-service burger restaurant. This is not a distress closure; it is a capital-light strategy. But buyers should diligence whether the refranchised units have viable lease terms, labor models, and four-wall economics, or whether the brand is shedding locations it does not want to operate itself.
Buyer diligence checklist for closure territories
Closures create opportunity only when you understand why the unit failed and whether you can fix it. Use this checklist before pursuing any territory that opened up after a closure:
| Question | Why it matters |
|---|---|
| Why did this location close? | Structural market weakness, brand-level problems, operator-specific failure, or lease expiration. The reason matters more than the closure itself. |
| Is the territory re-opening? | Check the FDD Item 12 territory definition and Item 20 outlet status. A closed unit may or may not free up the protected area. |
| What is the distressed resale value? | Closing franchisees or their landlords may sell equipment, lease assignments, or franchise rights at significant discounts to build cost. |
| Did the brand close corporate or franchisee units? | Corporate closures signal the brand is pruning its own portfolio. Franchisee closures may indicate operator economics are broken. |
| What does Item 20 show? | Compare closures to transfers, openings and non-renewals. A brand closing 300 units while opening 100 is net-shrinking — very different from closing 300 while opening 500. |
| Is the closure driver fixable? | Wage pressure is structural in California. Bad site selection is fixable. Oversaturation may be self-correcting as competitors close too. |
What this means for franchise buyers
The 2026 closure wave is not a franchise apocalypse. It is a portfolio correction after years of over-expansion, cheap capital, and pandemic-era demand distortion. Most closing brands are simultaneously opening new units in better locations with better economics.
The buyer opportunity is specific: closing units create distressed resale inventory, re-opened territories, and reduced competition in local markets. But only if the failure driver is fixable. A closed Wendy's in a declining strip center with a bad lease is not an opportunity. A closed Wendy's on a high-traffic corner where the prior operator undermanaged labor and food cost might be.
Cross-reference closure data with franchisee bankruptcy trends, franchise distress signals, and private equity roll-up risks to build a complete picture before committing capital.
Bottom line
2,300+ confirmed closures across eight major brands is a buyer intelligence event, not a market collapse. The brands are pruning underperformers. Smart franchise buyers track where the closures happen, why they happened, and whether the territory, real estate, or equipment is available at a discount that reflects the real risk.
Pair this tracker with FDDIQ's franchise development incentives tracker, franchise IPO tracker, and franchise due diligence checklist for a complete 2026 franchise market view.