Freddy’s Frozen Custard & Steakburgers Franchise Startup Cost, Profit & Opportunities

Freddy’s specializes in hot dogs, steakburgers, and frozen custard.

This business began operations in 2002 and began selling franchises in 2004. This franchise was founded by three partners; Scott Redler, Freddy Simon, and Bill Randy.

Headquartered in Wichita, KS, Freddy’s restaurant is rapidly expanding into new locations.

About Freddy’s

Freddy’s has established itself as one of the leading fast-food restaurant franchises in the United States. With over 300 locations found in 32 states, This franchise has as its slogan “The Taste That Brings You Back.” It has lived up to this slogan with a growing and loyal customer base who continue to enjoy Freddy’s treat.

The watchword at Freddy’s is service, hospitality, and a welcoming atmosphere. For an added assurance, there are several testimonials from existing franchisees that speak very well of the franchise.

Plus, during the application process, you get the chance to chat with these franchisees about their business.

Are There International Opportunities?

Apart from having exclusive territory opportunities across the United States, Freddy’s is also seeking international franchisees.

Apart from its first international debut in Dubai, Freddy’s has ambitious expansion plans across the world. Its franchise development team is constantly working to add more countries to its operational areas.

Recognition And Awards

Freddy’s excellent products and services haven’t gone unnoticed. This dedication and commitment to customer needs have fetched it some major recognition in Forbes #1 Best Franchises to Buy under the high investment category.

Freddy’s has also been ranked #51 on Entrepreneur Magazine’s franchise 500. There are still more!

Franchise Times Magazine named Freddy’s as the 14th Smartest Growing Brand in Fast & Serious 2019 ranking.

Other recognitions include the 2019 Inc. 5000 list, and Technomic’s Top 500 Chain Restaurant Report 2019. These awards and recognition give the franchisor added credibility resulting in investor confidence.

Financial Requirements

To own Freddy’s franchise, you’ll need to ensure you meet all its financial requirements. What are these requirements like? They include initial investments, the franchise fee, ongoing royalties, as well as liquid assets and a minimum net-worth.

The initial investment amount ranges from $592,810 to $1,999,117. This excludes real estate costs. The initial investment amount you pay will be determined by restaurant size, permit requirements, construction costs as well as special lease provisions.

Single Freddy’s restaurants will require an initial franchise fee of $25,000 as well as ongoing royalties. Ongoing royalties constitute 4.5% of gross sales with an ad royalty of 0.375%. The finer details of these fees are found in the franchisor’s FDD.

Additional costs include liquid assets of $250,000 and a net-worth of $850,000.


Freddy’s Restaurant ensures that all new franchisees get the right training. This includes onsite training as well as another training held at its corporate headquarters. Onsite training lasts 225 hours while training at headquarters lasts for 15 hours.


The franchisor provides extensive support in a variety of ways. These cover pre & post-opening public relations, operations & training support, ongoing field support, guidance consultations, creation & support of all social media profiles & presence as well as assistance from its real estate team.

Real estate assistance includes facility planning, site selection, restaurant layout, equipment specifications & ordering and fixtures. All such support services cover the core areas of the franchisor’s operations.

Getting Started

Freddy’s has easy steps for prospective franchisees to begin the process of application.

By establishing contact with Freddy’s, you want to first find answers to questions you have or need clarifications on certain aspects of its operations. This process is still necessary for finding the answers you seek.

  • Inform The Franchisor Of Your Intentions

Whether you’re seeking clarifications or are convinced this franchise is right for you, you’ll need to fill the franchise information request form. This is found when you scroll down the page. The form requires your personal information including the desired territories you seek, the number of Freddy’s restaurants you wish to open.

Some other questions seek to know if you currently own a franchise, or if you’re a U.S citizen, permanent resident, etc. Fill the form carefully and submit.

  • Speak With A Freddy’s Representative

This is the next step after filling its franchise information request form. A dedicated franchise development team member calls back to discuss and send you a copy of Freddy’s Franchise Disclosure Document (FDD).

  • Due Diligence Is Necessary

The FDD is quite voluminous and holds a lot of information about this franchise. You’ll need to perform your due diligence as is necessary for all types of businesses. You must raise questions on areas of the FDD you feel aren’t clear enough.

  • Assessment of Your Application

The franchisor assesses your application to find if you’re qualified or not. This will determine whether to proceed or not. Qualified franchisees are given the nod to proceed.

  • Discovery Day

This is scheduled by the franchisor. It is an event where you get to visit Freddy’s headquarters in Wichita. Here, you meet with the franchise executive leadership team plus department heads. You also get to finalize your desired territory plus the number of restaurants. The franchisor’s real estate department also helps with securing locations.

As construction commences, a management training follows. This results in the eventual opening of your first Freddy’s restaurant.

Time Taken To Open A Freddy’s Restaurant

After signing the franchise agreement with Freddy’s operations don’t take off immediately. Instead, preparations will need to be made such as construction and training. Generally, a restaurant should be ready to commence operations in 8 to 18 months.

The length of time it takes to open Freddy’s restaurant depends on the prototype construction, location, demographics as well as whether the franchisee wants to lease or buy the property.

These are the most basic information about Freddy’s franchise. When you decide to proceed with your application as provided above, many more details about the application process are supplied by the franchisor. You’re also provided with its terms of doing business contained in the FDD.

We recommend you seek legal help to fully understand the contents.