How Much Does a Freddy’s Franchise Owner Make?
Freddy’s franchise owners earn approximately $200,000–$300,000 annually per location based on an estimated system AUV of $1.8M–$2.0M and operating margins of 11–15% after Freddy’s 10% combined royalty and marketing fee. Freddy’s 2025 FDD reports top-25% AUV of $2,530,000 — the brand’s marketing highlight — but system-wide AUV for all operators is closer to $1.8M–$2.0M when the full cohort is included. Freddy’s is owned by Rhone Capital (PE) and has grown to 580+ locations since 2002, known for cooked-to-order steakburgers and fresh frozen custard.
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Freddy’s Quick Stats
| Metric | Value |
|---|---|
| Top-25% AUV (2025 FDD Item 19) | $2,530,000 |
| Estimated System-Wide AUV | $1.8M–$2.0M |
| Item 19 Disclosure | Yes — top-25% and other tiers |
| Estimated Owner Income | $200K–$300K per location |
| Royalty Rate | 6% of gross sales |
| Marketing Fund | 4% of gross sales |
| Total Fee Burden | 10% |
| Initial Investment | $735K–$2.4M |
| US Locations | 580+ |
| Owner | Rhone Capital (PE) |
| Avg Payback Period | 5–9 years |
How Much Does a Freddy’s Franchise Owner Make Per Year?
| AUV Tier | Est. Net Margin | Est. Owner Income |
|---|---|---|
| $1.2M (lower performers) | 10–12% | $120K–$144K |
| $1.8M–$2.0M (system est.) | 11–15% | $198K–$300K |
| $2.53M (top 25%) | 13–16% | $329K–$405K |
Methodology: Freddy’s 2025 FDD top-25% AUV $2,530,000 (496 restaurants in operation for full 2024 fiscal year; 124 in top 25%). Note: the top-25% AUV is the brand’s primary marketing figure but represents only the strongest performers. System-wide AUV estimated at $1.8M–$2.0M based on total system revenue ($925M per 2024 reports, 580+ locations). 10% total fees. Always consult current FDD for full cohort data.
| Brand | AUV | Fees | Investment | Est. Income |
|---|---|---|---|---|
| Freddy’s | $1.8M–$2.0M (est.) | 10% | $735K–$2.4M | $200K–$300K |
| Culver’s | $3.69M–$4.14M | 10.5% | $2.64M–$8.57M | $440K–$554K |
| Five Guys | $1.536M | ~9% | $440K–$940K | $130K–$200K |
| Burger King | $1.6M–$1.7M | 9%+ | $363K–$4.7M | $90K–$230K |
For full FDD data, visit FranchisePayback.com.
Frequently Asked Questions About Freddy’s Franchise Income
How much does a Freddy’s franchise owner make?
Based on estimated system-wide AUV of $1.8M–$2.0M and operating margins of 11–15%, a Freddy’s franchise owner earns approximately $200,000–$300,000 annually per location. Top-25% performers at $2.53M AUV earn $329,000–$405,000.
Is Freddy’s a good franchise investment?
Freddy’s is a solid premium burger concept with strong brand differentiation (fresh frozen custard, cooked-to-order steakburgers) and 580+ proven locations. The $735K–$2.4M investment range and 5–9 year payback are the main constraints. Culver’s ($440K–$554K income) is the stronger investment if you can qualify — but Freddy’s is more accessible and actively developing.
What is the Freddy’s top-25% AUV?
Freddy’s 2025 FDD reports top-25% AUV of $2,530,000 for 124 of 496 qualifying restaurants in fiscal 2024. This is the AUV Freddy’s uses in marketing materials. The full-system AUV is estimated at $1.8M–$2.0M when all cohort members are included.
Where can I find Freddy’s FDD data?
Full FDD data are available at FranchisePayback.com.
Bottom Line
Freddy’s is a genuine premium burger brand with the frozen custard differentiation that sets it apart from Burger King and Five Guys. At $1.8M–$2.0M estimated system AUV and 10% fees, the unit economics are solid. The Rhone Capital PE ownership and $735K+ investment entry point limit accessibility. For operators who can’t qualify for Culver’s (internal-only) or McDonald’s (resale/competitive), Freddy’s is a compelling premium burger alternative with active US development.
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— SharpSheets Editorial Team | sharpsheets.io | Last Updated: July 2026