Freddy’s Franchise FDD, Profits & Costs (2025)
Freddy’s Frozen Custard & Steakburgers is an American fast-casual restaurant chain known for its steakburgers, Vienna Beef hot dogs, and freshly churned frozen custard.
It was founded in 2002 in Wichita, Kansas, by brothers Bill and Randy Simon, alongside their friend Scott Redler. The franchise is named after their father, Freddy Simon, a World War II veteran and Purple Heart recipient.
The first Freddy’s location opened in Wichita in August 2002, with a menu designed to reflect the Simon family’s commitment to quality and hospitality. The restaurant’s design evokes the late 1940s and early 1950s, creating a nostalgic dining experience for customers. The company began franchising in 2004.
Freddy’s stands out from competitors by focusing on freshly prepared, high-quality ingredients and a nostalgic atmosphere. The brand’s dedication to genuine hospitality and a simple yet appealing menu has helped it build a loyal customer base, contributing to its rapid growth in the fast-casual dining sector.
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Initial Investment
How much does it cost to start a Freddy’s Frozen Custard & Steakburgers franchise? It costs on average between $794,000 – $2,523,000 to start a Freddy’s Frozen Custard & Steakburgers franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Freddy’s offers 3 types of franchises:
| Type of Expenditure | In-Line (No Drive-thru) | End Cap (With Drive-thru) | Standalone (With Drive-thru) |
|---|---|---|---|
| License Fee | $30,000 | $30,000 | $30,000 |
| Training Expenses (Travel, Meals, Lodging, and Employee Wages) | $20,000 to $50,000 | $20,000 to $50,000 | $20,000 to $50,000 |
| Construction, Remodeling, and Leasehold Improvements | $372,000 to $750,000 | $550,000 to $1,436,465 | $650,660 to $1,610,673 |
| Real Property Rent (one month) | $5,667 to $15,750 | $5,667 to $15,750 | $5,667 to $15,750 |
| Security Deposit | $5,667 to $15,750 | $5,667 to $15,750 | $5,667 to $15,750 |
| Computer, Point of Sale Equipment, Outdoor Ordering System and Software, Security Cameras, Drive Thru Headsets | $30,102 to $58,665 | $53,764 to $99,066 | $53,764 to $99,066 |
| Equipment, Furniture, Fixtures and Décor | $282,318 to $382,300 | $312,480 to $480,100 | $312,480 to $480,100 |
| Building Signage / Interior Neon / LED Border | $6,000 to $26,640 | $12,890 to $53,160 | $22,090 to $108,900 |
| Miscellaneous Opening Costs | $8,000 to $15,000 | $8,000 to $15,000 | $8,000 to $15,000 |
| Opening Inventory and Supplies | $10,000 to $25,000 | $10,000 to $25,000 | $10,000 to $25,000 |
| Insurance | $2,000 to $5,000 | $2,000 to $7,000 | $2,000 to $8,000 |
| Grand Opening Advertising | $2,500 to $5,000 | $2,500 to $5,000 | $2,500 to $5,000 |
| Additional Funds – 3 months | $20,000 to $60,000 | $20,000 to $60,000 | $20,000 to $60,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $794,254 to $1,439,105 | $1,032,968 to $2,292,291 | $1,142,828 to $2,523,239 |
Average Revenue (AUV)
How much revenue can you make with a Freddy’s Frozen Custard & Steakburgers franchise? A Freddy’s Frozen Custard & Steakburgers franchised restaurant makes on average $1,758,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $524,000 yearly revenue for similar ice cream franchises. Below are a few Freddy’s Frozen Custard & Steakburgers competitors as a comparison:
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Franchise Disclosure Document
Frequently Asked Questions
How many Freddy’s Frozen Custard & Steakburgers locations are there?
As of the latest data, Freddy’s Frozen Custard & Steakburgers operates over 500 locations across 36 states in the United States, with the majority being franchise-owned.
What is the total investment required to open a Freddy’s Frozen Custard & Steakburgers franchise?
The total investment required to open a Freddy’s Frozen Custard & Steakburgers franchise ranges from $794,000 to $2,523,000.
What are the ongoing fees for a Freddy’s Frozen Custard & Steakburgers franchise?
Freddy’s Frozen Custard & Steakburgers franchisees pay a 5% royalty fee and a 4% marketing fee, both based on gross sales.
What are the financial requirements to become a Freddy’s Frozen Custard & Steakburgers franchisee?
To become a Freddy’s Frozen Custard & Steakburgers franchisee, you must have a minimum net worth of $1.5 million and liquid capital of at least $500,000. These requirements ensure that franchisees have the financial stability to cover initial investments and sustain the operations of their restaurant while maintaining brand standards.
How much can a Freddy’s Frozen Custard & Steakburgers franchise owner expect to earn?
The average gross sales for a Freddy’s Frozen Custard & Steakburgers franchise are approximately $1.76 million per location. Assuming a 15% operating profit margin, $1.76 million yearly revenue can result in $264,000 EBITDA annually.
Who owns Freddy’s Frozen Custard & Steakburgers?
Freddy’s Frozen Custard & Steakburgers franchise is owned by The Saxton Group, a multi-unit franchisee that operates a significant number of locations.
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