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.
Franchise Costs
5% royalty + 1.5% national marketing fund (up to 3%) + $100 per 28-day technology support fee
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
Key Insights
- Higher investment than 79% of Fast Food franchises
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
FREDDY'S FROZEN CUSTARD & STEAKBURGER Current | $786K – $2.8M | $35K | 5.0% | 514 |
| 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 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 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
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
520 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
520 Contacts Available
Unlock all FREDDY'S FROZEN CUSTARD & STEAKBURGER franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
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.
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