FDD Analysis 2025 FDD

Freddy's Frozen Custard & Steakburgers Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Freddy's Frozen Custard & Steakburgers's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Freddy's Frozen Custard & Steakburgers FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$785,936 - $1,198,665
Franchise Fee$35,000

Investment Breakdown

License Fee$35,000 - $35,000
Training Costs and Expenses (Travel, Meals, Lodging, and Employee Wages)$10,000 - $40,000
Construction, Remodeling, and Leasehold Improvements$270,000 - $500,000
Real Property Rent (one month)$5,667 - $12,500
Security Deposit$5,667 - $12,500

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee5% of gross sales
Marketing/Advertising Fee5% of gross sales

Other Ongoing Fees

Technology Support FeeVaries
Site SelectionVaries
Additional TrainingVaries
New Product/Service TestingVaries
Audit ExpensesVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$1,834,089/year
Disclosure Year2025
Reporting Units—
Revenue VarianceModerate variance (typical spread)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

550

Total Units

+33

Net Growth (YoY)

+6.4%

Growth Rate

Franchised Units514
Company-Owned Units36

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

No material litigation disclosed in Item 3.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

Freddy's Frozen Custard & Steakburgers Overview

Full franchise profile and details

Is Freddy's Frozen Custard & Steakburgers Worth It?

Investment analysis and evaluation

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