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The real numbers on owning a Freddy's franchise
Quick Service Restaurant (Burgers/Frozen Custard) · FDD 2026 · from public state filings
CDisclosure honesty
This franchisor discloses earnings (Item 19) — but read how.
Investment
$854,834–$2,802,000
Total fees
7.5% of sales
Outlets
580
Closure signals
0 ceased, 19 terminated
Lawsuits
0
What their own earnings claim actually says
Discloses gross receipts, cost of sales, labor, controllable/non-controllable expenses, and 4-wall EBITDA for company-owned Midwest restaurants only. Excludes rent, depreciation, above-restaurant overhead, and franchise-specific costs; not representative of franchisee results.
Failure & turnover reality (Item 20)
19 terminations in 2025; 26 total terminations over 3 years; Illinois lost 10 in 2025 alone.
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The franchisor won't put real owner profit in writing. We do — reconstructed from their own FDD.
Franchisor's framing: Discloses gross receipts, cost of sales, labor, controllable/non-controllable expenses, and 4-w…
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Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
Break-even timeline + cash-on-cash ROI on your investment
Full fee stack + required-purchase markups
Decoded real failure / closure rate
How it ranks vs comparable franchises
Validation-call playbook — who to call + the exact questions
The FDD lists a total initial investment of about $854,834–$2,802,000, including a $35,000 initial franchise fee.
How much do Freddy's franchise owners make?
Discloses gross receipts, cost of sales, labor, controllable/non-controllable expenses, and 4-wall EBITDA for company-owned Midwest restaurants only. Excludes rent, depreciation, above-restaurant overhead, and franchise-specific costs; not representative of franchisee results. We grade this disclosure C for honesty.
What is the Freddy's franchise failure rate?
19 terminations in 2025; 26 total terminations over 3 years; Illinois lost 10 in 2025 alone.
Is a Freddy's franchise worth it?
It depends on the numbers, not the pitch. Freddy's scores C on disclosure honesty, carries about 7.5% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: MN CARDS 36401-202604-09 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Freddy's or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.