Freddy's Frozen Custard & Steakburgers
Food & Beverage · Fast-Casual Restaurants
- Active units
- 484
- Avg unit volume
- $1.9M
Franchised, year-end 2023
About Freddy's Frozen Custard & Steakburgers
The menu features a selection of all-beef hot dogs, shoestring fries, and chicken sandwiches alongside its signature burgers and frozen custard desserts. The brand operates brick-and-mortar locations including standalone buildings with drive-thrus, end caps, and sites in non-traditional venues like airports and stadiums. Inspired by the late 1940s and early 1950s, the restaurant environment focuses on a vintage-themed atmosphere and hospitality for families and individual diners. Business operations are built on a franchise model that utilizes standardized kitchen equipment and prepared-to-order meal processes.
Key terms
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations514
Franchised units open at year-end
- New openings37
Gross new units opened during the calendar year
- 1-year unit growth rate6.2%
Net unit growth versus prior year
- 3-year unit CAGR5.8%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio5.3×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate-0.7%
Year-over-year change in median AUV
- Store-level EBITDA Margin19.5%
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$1.8M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open9 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns28.0%
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.