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FREDDY'S FROZEN CUSTARD & STEAKBURGERS
Freddy’s Frozen Custard & Steakburgers franchises operate quick-service restaurants featuring steakburgers, hot dogs, and frozen custard sold to the general public. The business model centers on a proprietary system including distinctive restaurant design, operational standards, quality controls, training, and advertising programs managed through franchise agreements. They target consumers in the competitive fast-food market, with seasonality favoring higher sales in summer due to frozen desserts.
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Franchise Costs
5% royalty + 2% ad fund + $100 per 28-day technology support fee
Financial Performance
Item 19 Financial Performance
Data Based On: Data based on 463 franchised restaurants open for the entire 2024 Fiscal Year.
* Average gross revenue and median gross revenue were extracted directly from 'TABLE 4: ANNUAL GROSS RECEIPTS OF FRANCHISED RESTAURANTS'. Revenue top quartile and revenue bottom quartile were extracted from 'TABLE 7: SYSTEMWIDE ANNUAL GROSS RECEIPTS OF FRANCHISED RESTAURANTS FOR 2024 FISCAL YEAR BY QUARTILE'. A weighted average of annual gross receipts for franchised restaurants was calculated from Table 7's quartile data: (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, which aligns with the overall average from Table 4. Profit-related metrics (gross profit, net income, net profit, EBITDA, and profit range estimates) are set to null because the document does not provide explicit expense data or profit figures for franchised units. Table 9's expense percentages are explicitly stated to be for company-owned restaurants and do not apply to franchised units due to differences like royalty fees (Page 6, Note 8). Page 6, Note 12 also indicates that the figures do not reflect all costs/expenses to obtain net income or profit.
Extracted Item 19 Section
Avg. Revenue: $1,860,140
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Unlock financial performance dataFREDDY'S FROZEN CUSTARD & STEAKBURGERS Franchise Analysis
From Wichita's flatlands emerged a fast-food gem fusing shoestring fries, castle-shaped burgers, and velvety frozen custard—a nostalgic nod to 1940s diners that's hooked Midwest appetites since 2004. Item 19 financials spotlight standout gross sales across a growing network, while low terminations hint at operator stickiness amid competitive pressures. But in a market dominated by burger giants, can Freddy's unique dessert edge and summer surge sustain franchisee bankrolls year-round?
Item 7 lays out the steep entry: franchise fee of $35,000, total initial investment spanning $785,936 to $2,753,566 depending on real estate and buildout. Ongoing fees bite at 5% royalty on gross sales, 2% brand fund, plus a $100 per 28-day technology support charge—standard for quick-service but adding up on high-volume units. Item 19 delivers the payoff: average gross revenue of $1,860,140 and median $1,834,089, figures that outpace many peers and reflect strong AUVs driven by custard craveability and limited-menu efficiency, though seasonality tempers winter draws.
Growth metrics scream momentum: 484 franchise locations in 2023 ballooned to 514 in 2024 (+6%), backed by 36 corporate stores, just 7 terminations, 43 transfers, and 70 projected new units signaling brand vitality under Patriot IL Holdings. For evaluators eyeing $2M+ builds, these revenues imply solid top-line potential if foot traffic holds, but scrutinize Item 20 for unit-level variance and competition from bigger chains—strong medians mean outliers exist, demanding site selection savvy to hit those averages.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How FREDDY'S FROZEN CUSTARD & STEAKBURGERS Compares
Key Insights
- Higher investment than 80% of Fast Food franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
FREDDY'S FROZEN CUSTARD & STEAKBURGERS Current | $786K – $2.8M | $35K | 5.0% | 514 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 132 franchises | $602K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 132 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
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Unlock location growth dataFranchisee Contacts
524 franchisee contacts on file from official FDD filings.
524 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a FREDDY'S FROZEN CUSTARD & STEAKBURGERS 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.