Freddy's Frozen Custard & Steakburgers^®

Food & Beverage • Year: 2025

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What Is Freddy's Frozen Custard & Steakburgers?

Freddy's Frozen Custard & Steakburgers is a quick-service restaurant franchise that features steakburgers, hot dogs, and frozen custard. Franchisees operate restaurants under a mandated System of distinctive design, operational and training manuals, and develop single or multiple restaurants under License and Development Agreements with protected territories and company site-approval requirements.

Freddy's Frozen Custard & Steakburgers Franchise: Pros and Cons

The franchisor’s standout strength is a Training and Support score of 100 with 306 hours of hands-on training, which prepares operators thoroughly; the main risk is the very high capital requirement—minimum $785,936 (up to $2,753,566) with required assets of $427k–$513k—raising significant financing needs.

Pros

Training & Support score of 100 (with 306 hours of training) is well above what's typical, meaning the franchisor invests heavily in hands-on preparation so new operators are thoroughly trained before opening.

Zero disclosed lawsuits, government penalties, franchisor enforcement actions, or franchisee-initiated judgments is well below what's typical, indicating a clean legal record and lower legal friction for operators.

550 total outlets (514 franchised and 36 company-owned) is well above typical for this sector, giving you the advantages of a large, established system and some corporate-run locations that test and refine operations.

Cons

Item 7 Total Min of $785,936 (and a Total Max up to $2,753,566, with assets in the $427k–$513k range) is well above typical, meaning your minimum upfront capital—and the possible maximum—will be significantly higher than most peers and will increase financing needs.

A reported maximum training cost of $40,000 is well above typical, adding a material up-front expense on top of other startup costs.

Seven outlet terminations is well above what's typical for this sector, suggesting a higher-than-normal rate of operators exiting the system and warranting closer investigation into why those closures occurred.

Lawsuits & Legal Risk

100

Excellent

The franchise reported no material legal proceedings.

Territory Protection

52/100

NORMAL

Grants a protected operating area where franchisor will not place other physical units. Franchisor retains rights to sell via e-commerce and alternative distribution channels, develop additional units in the surrounding market (no right of first refusal), use different trademarks and alternative venues, and conditions protection on performance contingencies.

Training & Support

100

Excellent

Freddy's Frozen Custard & Steakburgers provides a comprehensive 306-hour training curriculum designed to prepare five individuals for launch through classroom instruction and hands-on operational training. The program includes on-site launch assistance as an operational readiness measure, with on-site support available for an additional fee and travel and living expenses borne by the franchisee.

Unit Growth Analysis

This franchise expanded from 456 units in 2023 to 517 in 2024 (+13.4%) and to 550 in 2025 (+6.4%), indicating continued positive but decelerating unit growth. Total growth of 20.6% over two years signals healthy expansion and scale, but the drop from ~13.4% to 6.4% (roughly halved growth rate) is a notable slowdown investors should probe (e.g., franchisee pipeline, market saturation, or execution constraints).

How Much Does It Cost to Open a Freddy's Frozen Custard & Steakburgers Franchise?

Opening a Freddy's Frozen Custard & Steakburgers franchise requires a total initial investment of $785,936 to $2,753,566, according to the 2025 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$785,936

Franchise Fee

Real Estate

Equipment & Assets

Reserves

Training

Other

Maximum Investment

$2,753,566

Minimum Investment Breakdown

Franchise Fee$35,000

Real Estate$281,334

Equipment & Assets$427,102

Reserves$20,000

Training$10,000

Other$12,500

Maximum Investment Breakdown

Franchise Fee$35,000

Real Estate$525,000

Equipment & Assets$513,665

Reserves$60,000

Training$40,000

Other$1,579,901

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

How Much Do Freddy's Frozen Custard & Steakburgers Franchise Owners Make?

Freddy's Frozen Custard & Steakburgers franchise locations reported average gross sales of $1,860,140 and median gross sales of $1,834,089 in 2025, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$1,860,140

Median Gross Sales:

$1,834,089

High Gross Sales:

$4,292,651

Low Gross Sales:

$765,761

Sample Size:

463

Percent Attaining Average:

47.0%

Franchise vs Corporate Performance: Franchised restaurants reported an average annual gross receipt of 1,860,140 versus company-owned average of 2,325,836, indicating company-owned outlets in the sample produced higher average sales in 2024.

Performance Variability Analysis: Franchised unit performance shows wide variability with annual receipts ranging from 765,761 to 4,292,651 and only 47% of franchised units meeting or exceeding the mean, reflecting a broad spread across locations and quartiles.

Data Scope and Limitations: The franchised data are unaudited and derived from royalty reports and exclude units not open the full year and certain non-traditional locations, while expense percentages are reported only for company-owned, Midwest-located restaurants.

Frequently Asked Questions

How much does it cost to open a Freddy's Frozen Custard & Steakburgers franchise?

The total initial investment for a Freddy's Frozen Custard & Steakburgers franchise ranges from $785,936 to $2,753,566, according to the 2025 Franchise Disclosure Document. This includes the franchise fee, real estate, equipment, training, and working capital.

What is the Freddy's Frozen Custard & Steakburgers initial franchise fee?

The initial franchise fee for Freddy's Frozen Custard & Steakburgers is $35,000, as stated in the 2025 FDD. This fee is paid upon signing the Franchise Agreement.

How much do Freddy's Frozen Custard & Steakburgers franchise owners make?

Freddy's Frozen Custard & Steakburgers franchise locations reported average gross sales of $1,860,140 and median gross sales of $1,834,089 in 2025, based on Item 19 of the Franchise Disclosure Document. Actual earnings vary by location, market, and operator experience.

Does Freddy's Frozen Custard & Steakburgers have any franchise lawsuits or legal issues?

Freddy's Frozen Custard & Steakburgers received a legal risk score of 100 out of 100 in the 2025 FDD analysis. The franchise reported no material legal proceedings.

Does Freddy's Frozen Custard & Steakburgers offer exclusive franchise territories?

Freddy's Frozen Custard & Steakburgers received a territory protection score of 52 out of 100. Grants a protected operating area where franchisor will not place other physical units.

What training does Freddy's Frozen Custard & Steakburgers provide to new franchisees?

Freddy's Frozen Custard & Steakburgers received a training and support score of 100 out of 100. Freddy's Frozen Custard & Steakburgers provides a comprehensive 306-hour training curriculum designed to prepare five individuals for launch through classroom instruction and hands-on operational training.

How many Freddy's Frozen Custard & Steakburgers franchise locations are there?

Freddy's Frozen Custard & Steakburgers had 550 total locations as of the 2025 Franchise Disclosure Document.

What type of business is Freddy's Frozen Custard & Steakburgers?

Freddy's Frozen Custard & Steakburgers is a quick-service restaurant franchise that features steakburgers, hot dogs, and frozen custard.

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