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.
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
How FREDDY'S FROZEN CUSTARD & STEAKBURGERS Compares
Key Insights
- Higher investment than 79% 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 |
| 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
Franchisee Contacts
524 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 |
524 Contacts Available
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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 & 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.
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