Freddy's Frozen Custard & Steakburgers

Freddy's Frozen Custard & Steakburgers

Information based on 2024 FDD

Food & Beverage · Burgers & Fries

Investment min
$898K
Total: $898K–$2M
Avg gross revenue
$2M
Unit-level, 2024
Franchise fee
$35K
Per current disclosure
Royalty
4.5%
of gross revenue
Locations
484
Franchising since 2004

Description

What is Freddy's Frozen Custard & Steakburgers?

Freddy’s Frozen Custard & Steakburgers, founded in 2002, is a fast-casual restaurant brand known for its premium steakburgers, creamy frozen custard, and family-friendly atmosphere. With a proven franchise model, strong brand loyalty, and comprehensive support, Freddy’s offers franchisees the opportunity to succeed in the growing fast-casual dining industry.

  • 22-year proven operational track record
  • 517 units demonstrate system stability
  • Unique frozen custard differentiator
  • Cooked-to-order premium positioning
  • Strong unit revenue performance
  • Vintage concept appeals broadly

Location Analysis

Where Freddy's Frozen Custard & Steakburgers wins

Freddy's Frozen Custard & Steakburgers demonstrates strong market presence across multiple states, showing particular density in the South and Midwest regions. The brand maintains a notable concentration in Texas, while showing strong establishment in Illinois and Missouri, indicating robust market acceptance in these regions. The franchise maintains consistently positive customer ratings across thousands of reviews, suggesting reliable operational performance.

The franchise's geographic distribution reveals a strategic focus on high-growth markets, with significant presence in states experiencing population growth and strong economic indicators. Texas's market leadership highlights the brand's success in markets with diverse demographics and strong dining-out cultures. The substantial presence in Midwest states demonstrates effective market penetration in regions with moderate competition and stable consumer spending.

Expansion opportunities exist particularly in the Northeast and West Coast, where the brand has room for growth. Ideal locations typically include suburban areas with median household incomes above $50,000, strong daytime population, and proximity to retail centers or major thoroughfares. Success factors include locations with high visibility, accessible parking, and demographics favoring family dining.

Market analysis suggests potential for significant growth, particularly in underserved states, though franchisees should consider regional competition from established burger concepts and local preferences for casual dining options.
Total US locations
517
Franchise units
484
Corporate locations
33
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Freddy's Frozen Custard & Steakburgers

Avg gross revenue$1,872,728
Investment range$897,936 – $1,625,165
Investment midpoint$1,261,551
Brand fund1.5%
Royalty4.5%
Franchise fee$35,000
Min. net worth
Min. liquid capital
Freddy's Frozen Custard & Steakburgers requires an investment range of $897,936 to $1,625,165, positioning it as a mid-tier opportunity within the fast-casual segment. This investment level sits below the burgers & fries sub-sector average range of $985,322 to $2,087,083, offering relatively accessible entry into a competitive market. The fast-casual burger segment benefits from strong consumer demand for premium quick-service dining experiences, though faces intense competition from established players. Freddy's 22-year operational history since 2002 and 517 units demonstrate solid system maturity and proven scalability. The franchise's vintage-themed concept differentiates it through frozen custard offerings and cooked-to-order steakburgers, appealing to consumers seeking quality over speed. The reported gross revenue of $1,872,728 exceeds sub-sector averages, indicating strong unit-level performance potential. Ideal investors should possess substantial liquid capital for the significant upfront investment and working capital requirements typical of full-service restaurant operations. The business model requires hands-on operational involvement or experienced management, making it suitable for restaurant industry veterans or dedicated owner-operators. Multi-unit development opportunities exist given the system's growth trajectory, though market saturation in key demographics may limit expansion potential. Territory protection and site selection become critical factors given the competitive landscape. Prospective franchisees should thoroughly evaluate local market demographics, competition density, and labor availability before committing. The FDD review remains essential for understanding specific financial requirements, ongoing fees, and operational obligations.
Did you know? Starting your own Freddy's Frozen Custard & Steakburgers franchise - famous for their cooked-to-order steakburgers and rich frozen custard made fresh throughout the day - requires a total investment between $897,936 and $1,625,165, which covers everything from the $35,000 franchise fee to equipment, buildout, and working capital needed to bring this beloved Midwest comfort food concept to your community.

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$898K–$2M
Most common
$897,936
Minimum
$1,261,551
Midpoint
$1,625,165
Maximum

Per FDD Item 7, total initial investment ranges from $897,936 to $1,625,165. The midpoint $1,261,551 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

$3M$2M$2M$1M$500KN/A
$2M
$2M
$2M
2022
2023
2024
Avg
$2M
YOY change (2023 -> 2024)
+4%

According to Item 19 of the Franchise Disclosure Document, Freddy's Frozen Custard & Steakburgers has an average gross revenue of $2M. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

+13% YoY
6004803602401200
2020
2021
2022
2023
2024
517 units open as of 2024 FDD+61 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Freddy's Frozen Custard & Steakburgers's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Freddy's Frozen Custard & Steakburgers franchise typically ranges between $897,936.00 and $1,625,165.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Freddy's Frozen Custard & Steakburgers
Freddy's Frozen Custard & Steakburgers
$2M avg revenue · 484+ US franchises

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