Franchises · 2026 FDD · Wisconsin DFI filing 641465
Freddy's Frozen Custard & Steakburgers franchise cost, unit revenue and closures
Opening a Freddy's Frozen Custard & Steakburgers cost $1,586,334 to $2,802,000 in the 2026 FDD; the median unit sold $1,820,745 in the franchisor's 2025-01-01 to 2025-12-31 figures; 6.3% of franchised units closed over three years.
Franchisor: Freddy's, L.L.C.. FDD issued 2026-04-30. Fiscal year end 2025-12-31. Figures re-found on the cited page 2026-11-03.
What a unit costs to open
Standalone with drive-thru; End Cap with drive-thru $1,026,334 to $2,361,000; In-Line no drive-thru $854,834 to $1,302,000.
What a unit pays the franchisor
| Initial franchise fee | $35,000 | Item 5, p. 6 |
|---|---|---|
| Royalty | 5% of Gross Receipts, weekly | Item 6, p. 8 |
| Advertising fund | National Marketing and Advertising Fund currently 2.5% of Gross Receipts, 3% from October 2026 (range 0% to 3%) | Item 6, p. 8 |
License Fee; multi-unit developers pay a $15,000 development fee per restaurant.
What a unit sells
Item 19 is optional and is the franchisor's own representation. It is shown here as filed, with the franchisor's measure, sample and period, and nothing is estimated where it is missing.
| Measure | Annual Gross Receipts, 2025 fiscal year (Table 4, All column) | |
|---|---|---|
| Sample | 475 units: franchised restaurants open the entire 2025 fiscal year (43 not open all year and 22 non-traditional restaurants excluded); by facility type: standalone median $1,836,394, end cap $1,763,017, in-line $1,375,095; 35 company-owned reported separately | |
| Period | 2025-01-01 to 2025-12-31 | |
| High / low | $4,164,361 / $644,497 | |
Revenue to investment
Formula: Item 19 all-franchised median / Item 7 standalone total (midpoint, low, high). A ratio of 1.00 means one year of median unit revenue equals the investment; it says nothing about profit.
How many units open and close
| Franchised units | 2023 | 2024 | 2025 |
|---|---|---|---|
| Start of year | 427 | 484 | 514 |
| Opened | 61 | 37 | 47 |
| Terminated | 0 | 7 | 19 |
| Not renewed | 0 | 0 | 0 |
| Reacquired by franchisor | 3 | 0 | 0 |
| Ceased, other reasons | 1 | 0 | 0 |
| End of year | 484 | 514 | 542 |
| Company-owned, end of year | 33 | 36 | — |
Item 20, Table 1 p. 51; Table 3 totals p. 58.
Closures are the franchisor's Item 20 counts of units terminated, not renewed, or ceased for other reasons, summed over 2023–2025 and divided by franchised units at the start of 2023. Units the franchisor reacquired are not closures. This is an Item 20 count, not a failure rate.
company-owned 2023 start and 2025 end not captured in this pass; franchised rows verified against Table 3.
Source and method
Every figure above comes from the Freddy's Frozen Custard & Steakburgers Franchise Disclosure Document issued 2026-04-30, as filed with the Wisconsin Department of Financial Institutions (filing 641465, registry record). The PDF is the franchisor's and is not hosted here; the item and page beside each figure is where to check it. Item 7 and Item 20 tables were read cell by cell; Item 19 was read by hand; each Item 20 year was checked to sum (start + opened − exits = end) before it was recorded.
Informational only, not professional, legal or investment advice. Unitnomics computes from the filing and does not advise on, rank, or refer to any franchise. Last reviewed: November 2026.