O'Charley's settles lawsuit with first franchisee

GRAND RAPIDS Mich. Meritage Hospitality Group Inc., operator of about 50 franchised Wendy's quick-service restaurants and five O'Charley's casual-dining units, said Friday it settled a lawsuit filed last year against franchisor O'Charley's Inc. that alleged fraud and breach of contract.

Terms of the settlement were not disclosed.

Meritage, based here, filed the lawsuit against Nashville, Tenn.-based O'Charley's in May 2006, alleging various