- 2023 Franchise 500 Rank
#70 Ranked #59 last year
- Initial investment
$794K - $2.3M
- Units as of 2022
443 26.2% over 3 years
Founded in 2002, Freddy's Frozen Custard & Steakburgers is a fast-casual burger company named after Freddy Simon, a war veteran. The first Freddy's opened in Wichita, Kansas, which is where it is headquartered today. The company offers a unique combination of freshly churned frozen custards and ground beef steakburgers.
Today, the company offers chocolate and vanilla frozen custard with a wide range of mix-ins and toppings. Freddy’s Frozen Custard & Steakburgers has over 350 locations across the United States, as well as a few international locations.
The franchise has been ranked on Entrepreneur's Franchise 500 multiple times in the past decade. This ranking is based on an evaluation of more than 150 data points. These include areas in costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
Why You May Want to Start a Freddy's Frozen Custard & Steakburgers Franchise
Freddy's Frozen Custard & Steakburgers' ease of operations and well-priced menu may make it a desirable franchise to operate. By opening a Freddy’s Frozen Custard & Steakburgers franchise, you may take advantage of fairly low-cost real estate to establish a venue in the competitive restaurant environment. The company’s sleek concept design and well-thought-out pricing structure may make it an established eatery.
Instead of adopting a dollar-menu model, Freddy's Frozen Custard & Steakburgers focuses on improving the quality of dessert treats and meals. This approach may ensure that all customers in your community receive their money's worth of food. By starting this franchise, you may join a brand that runs an exciting chain of restaurants. The franchisor's core value of hospitality towards its guests is what keeps many customers returning.
What Might Make Freddy's Frozen Custard & Steakburgers Franchise a Good Choice?
Several variables go into how much you make as a Freddy's Frozen Custard & Steakburgers franchisee. However, Freddy's Frozen Custard & Steakburgers typically ensures that you open your franchise with full awareness of the pros and cons. By connecting you with an existing franchise owner, the company generally provides you with the opportunity to identify key points and understand the ins and outs of the business.
Over the years, Freddy's Custard & Steakburgers has built a loyal customer base for its wide range of products. As part of their hospitality, the company has developed a culture of free sharing of insights between franchisees' families.
As a franchised business, Freddy's Custard & Steakburgers may be predictable and reliable. To start this franchise, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. Additionally, you should be prepared for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How Do You Start a Freddy's Frozen Custard & Steakburgers Franchise?
If you're ready to help bring guests to Freddy's Frozen Custard & Steakburgers again and again, it might be time to apply. You'll usually have a chance to chat with the franchise development team, who will usually provide you with a Franchise Disclosure Document. Freddy’s Frozen Custard & Steakburgers may then give an initial confirmation that you qualify as a franchise owner.
After you qualify, the franchisor typically invites you to meet Freddy's Frozen Custard & Steakburgers team in Wichita, Kansas. If the opportunity is right for you, you'll be able to work with their representatives to confirm your number of restaurants, territory and sign the development agreement. After this, you may be taken through training and become a part of the Freddy's Frozen Custard & Steakburgers team.
About Freddy's Frozen Custard & Steakburgers
- Franchising Since
- 2004 (2023-2004 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
This company is offering new franchisees worldwide.
- # of Units
- 443 (as of 2022)
Information for Franchisees
Here's what you need to know if you're interested in opening a Freddy's Frozen Custard & Steakburgers franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $794,254 - $2,327,329
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $250,000 - $800,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 15 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 348 hours
- Classroom Training
- 67 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Ad TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Freddy's Frozen Custard & Steakburgers? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Freddy's Frozen Custard & Steakburgers landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where Freddy's Frozen Custard & Steakburgers ranked on other franchise lists? Find out below.
Ranked #70 in 2023
Entrepreneur’s 44th annual Franchise 500® ranking shines a light on the unique challenges and changes that have shaped the franchise industry over the last year—and how franchisors have adapted and evolved to meet them.
Ranked #78 in 2023
Meet the companies that are leveraging their ability to scale fast across the U.S. and Canada in Entrepreneur's annual fastest-growing franchises ranking.
Ranked #2 in Hamburgers in 2022
Our annual list of the top restaurant and other food franchises, divided up by category, is the perfect place to start if you’re craving a food-based business opportunity.
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