FREDDY'S FROZEN CUSTARD & STEAKBURGER
Freddy’s Frozen Custard & Steakburgers is a quick-service restaurant franchise specializing in steakburgers, hot dogs, and frozen custard sold to the general public. Franchisees operate under a proprietary system that includes distinctive restaurant design, operational standards, quality controls, training, and advertising programs identified by trademarks like “FREDDY’S FROZEN CUSTARD & STEAKBURGERS®”. The business model focuses on franchising these restaurants in competitive markets, with seasonality favoring higher sales in summer due to frozen desserts.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
5% royalty + 1.5% national marketing fund (up to 3%) + $100 per 28-day technology support fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 463 franchised Restaurants that were open for the entire 2024 Fiscal Year. These tables exclude the results of 34 franchised Restaurants that were not open for the entire 2024 Fiscal Year (32 new Restaurant openings and two temporarily closed Restaurants due to a fire) and 17 non-traditional Restaurants that are not open seven days per week and operate during limited hours.
* Calculated weighted average gross revenue from Table 7 using the average gross receipts for each of the four quartiles (Top, 2nd, 3rd, Bottom) and their respective number of restaurants: (116 units × $2,557,640 + 116 units × $2,003,924 + 116 units × $1,652,693 + 115 units × $1,220,793) / 463 total units = $1,860,140.40. Median, top quartile average, and bottom quartile average were directly extracted from Table 7.
Extracted Item 19 Section
How FREDDY'S FROZEN CUSTARD & STEAKBURGER Compares to Other Fast Food Franchises
Key Insights
- Higher investment than 79% of Fast Food franchises
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
FREDDY'S FROZEN CUSTARD & STEAKBURGER Current | $786K - $2.8M | $35K | 5.0% | 514 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| MCDONALD'S | $1.5M - $2.6M | $45K | N/A | 12,772 |
| AFC | $45K - $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M - $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K - $728K | $35K | 6.0% | 2,647 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+21 more states
SBA Loan History
Historical SBA 7(a) loan data for FREDDY'S FROZEN CUSTARD & STEAKBURGER franchisees (2012 - 2023)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
Unlock Franchisee Contact Database
520 franchisee contacts on file. Upgrade to see names, locations, phone numbers, and matched SBA loan data.
Upgrade to Pro$199/year · Cancel anytime
Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a FREDDY'S FROZEN CUSTARD & STEAKBURGER franchise?
The total initial investment to open a FREDDY'S FROZEN CUSTARD & STEAKBURGER franchise ranges from $785,936 to $2,753,566. This includes a franchise fee of $35,000. Ongoing royalty fees are 5.0% of gross sales.
How much revenue does a FREDDY'S FROZEN CUSTARD & STEAKBURGER franchise make?
According to the 2025 FDD, the average gross revenue for a FREDDY'S FROZEN CUSTARD & STEAKBURGER franchise is $1,860,140. The median revenue is $1,834,089.
How many FREDDY'S FROZEN CUSTARD & STEAKBURGER franchise locations are there?
As of the 2025 FDD, FREDDY'S FROZEN CUSTARD & STEAKBURGER has 514 franchise locations. The company has been franchising since 2004.
Can you get an SBA loan for a FREDDY'S FROZEN CUSTARD & STEAKBURGER franchise?
Yes, SBA loans are available for FREDDY'S FROZEN CUSTARD & STEAKBURGER franchises. Historical data shows 27 SBA 7(a) loans have been approved for FREDDY'S FROZEN CUSTARD & STEAKBURGER franchisees, with an average loan amount of $995,815. The historical default rate is 0.0%.
Is FREDDY'S FROZEN CUSTARD & STEAKBURGER a good franchise to buy?
FREDDY'S FROZEN CUSTARD & STEAKBURGER shows several positive indicators: established brand with 514+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in FREDDY'S FROZEN CUSTARD & STEAKBURGER?
Talk to a franchise advisor to get personalized guidance and learn if FREDDY'S FROZEN CUSTARD & STEAKBURGER is the right fit for you.
Talk to an Advisor