How much does a Freddy’s Frozen Custard & Steakburgers franchise cost?
Opening a Freddy’s Frozen Custard & Steakburgers franchise takes a total initial investment of $1,586,334 to $2,802,000, according to the brand's 2026 Franchise Disclosure Document. The FDD's Item 19 reports median annual gross receipts of $1,820,745 across 477 outlets.
Freddy’s franchises Restaurants under the name “Freddy’s Frozen Custard & Steakburgers.” Category: Food & Beverage.
Item 7
What it costs to open a Freddy’s Frozen Custard & Steakburgers franchise
The franchisor's own estimated initial investment, as disclosed in its 2026 FDD. The total is $1,586,334 to $2,802,000. Each line below carries the FDD page it was read from.
Where the money goes
The largest costs are Construction, Remodeling, and Leasehold Improvements ($950,000 to $1,800,000), Equipment, Furniture, Fixtures and Décor ($450,000 to $600,000), and Building Signage / Interior Neon / LED Border ($35,000 to $100,000). Together they make up about 89% of the high-end estimate.
Our arithmetic from the Item 7 table below.
| Expenditure | Low | High | Source |
|---|---|---|---|
| License Fee2026 FDD, Item 7, p. 13 | $35,000 | $35,000 | 2026 FDD, Item 7, p. 13 |
| Training Costs and Expenses (Travel, Meals, Lodging, and Employee Wages)2026 FDD, Item 7, p. 13 | $20,000 | $60,000 | 2026 FDD, Item 7, p. 13 |
| Construction, Remodeling, and Leasehold Improvements2026 FDD, Item 7, p. 13 | $950,000 | $1,800,000 | 2026 FDD, Item 7, p. 13 |
| Real Property Rent (one month)2026 FDD, Item 7, p. 13 | $5,667 | $15,750 | 2026 FDD, Item 7, p. 13 |
| Security Deposit2026 FDD, Item 7, p. 13 | $5,667 | $15,750 | 2026 FDD, Item 7, p. 13 |
| Computer, Point of Sale Equipment, Outdoor Ordering System and Software, Security Cameras, Drive Thru Headsets2026 FDD, Item 7, p. 13 | $42,500 | $59,500 | 2026 FDD, Item 7, p. 13 |
| Equipment, Furniture, Fixtures and Décor2026 FDD, Item 7, p. 14 | $450,000 | $600,000 | 2026 FDD, Item 7, p. 14 |
| Building Signage / | $35,000 | $100,000 | 2026 FDD, Item 7, p. 14 |
| Miscellaneous Opening Costs2026 FDD, Item 7, p. 14 | $8,000 | $15,000 | 2026 FDD, Item 7, p. 14 |
| Opening Inventory and Supplies2026 FDD, Item 7, p. 14 | $10,000 | $25,000 | 2026 FDD, Item 7, p. 14 |
| Insurance2026 FDD, Item 7, p. 14 | $2,000 | $8,000 | 2026 FDD, Item 7, p. 14 |
| Grand Opening Advertising2026 FDD, Item 7, p. 14 | $2,500 | $8,000 | 2026 FDD, Item 7, p. 14 |
| Additional Funds – 3 months2026 FDD, Item 7, p. 14 | $20,000 | $60,000 | 2026 FDD, Item 7, p. 14 |
| Total estimated initial investment2026 FDD, Item 7, p. 13-14 | $1,586,334 | $2,802,000 | 2026 FDD, Item 7, p. 13-14 |
Source Freddy’s Frozen Custard & Steakburgers, 2026 FDD, Item 7, p. 13-14, via Public FDD bucket (storage.googleapis.com/franchiseindx_fdds) (source record). Figures read and verified 2026-09-14.
Item 19
What Freddy’s Frozen Custard & Steakburgers franchisees actually report earning
Median Annual Gross Receipts
$1,820,745
Freddy’s Frozen Custard & Steakburgers' 2026 FDD, Item 19, for the 2025 Fiscal Year. Basis: 475 franchised Restaurants that were open for the entire 2025 Fiscal Year.
Sample size: 477 outlets. The FDD also reports average annual gross receipts of $1,859,481. We lead with the median because an average is pulled upward by the strongest outlets; the median is the middle outlet.
What the franchisor excluded from this figure
- These tables exclude the results of two company-owned Restaurants and 43 franchised Restaurants that were not open for the entire 2025 Fiscal Year (42 new Restaurant openings and one temporarily closed Restaurants due to a fire), 19 franchised restaurants that closed during the 2025 Fiscal Year, 23 non-traditional Restaurants (one company-owned and 22 franchised) that are not open seven days per week and operate during limited hours (these include five Restaurants located at college campuses, two Restaurants located in casinos, three Restaurants located at an airport, and 13 Restaurants located in sports arenas).
This is a disclosure of what some existing outlets reported, not a projection of what a new Freddy’s Frozen Custard & Steakburgers outlet would earn. Your results will differ.
Source Freddy’s Frozen Custard & Steakburgers, 2026 FDD, Item 19, p. 41-52, via Public FDD bucket (storage.googleapis.com/franchiseindx_fdds) (source record). Figures read and verified 2026-09-14.
Item 20
How many Freddy’s Frozen Custard & Steakburgers outlets there are, and how many closed
Freddy’s Frozen Custard & Steakburgers ended 2025 with 542 franchised outlets and 38 company-owned outlets. In that year 47 franchised outlets opened and 19 left the system.
Three years at a glance
From 2023 through 2025, Freddy’s Frozen Custard & Steakburgers opened 145 franchised outlets and 30 outlets left the system. That is a net gain of 115, from 427 to 542 franchised outlets. Of the outlets that left, 26 were terminated, 3 were bought back by the franchisor, and 1 closed for other reasons.
On average, about 2.1% of franchised outlets left the system each year, roughly 1 in 48.
Our arithmetic from the FDD's Item 20 table below. "Left the system" counts every outlet the franchisor reports as terminated, not renewed, bought back, or closed for other reasons.
| Year | Start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | End | Source |
|---|---|---|---|---|---|---|---|---|
| 2025 | 514 | 47 | 19 | 0 | 0 | 0 | 542 | 2026 FDD, Item 20, p. 58 |
| 2024 | 484 | 37 | 7 | 0 | 0 | 0 | 514 | 2026 FDD, Item 20, p. 58 |
| 2023 | 427 | 61 | 0 | 0 | 3 | 1 | 484 | 2026 FDD, Item 20, p. 58 |
Source Freddy’s Frozen Custard & Steakburgers, 2026 FDD, Item 20, p. 53-58, via Public FDD bucket (storage.googleapis.com/franchiseindx_fdds) (source record). Figures read and verified 2026-09-14.
Compare
How Freddy’s Frozen Custard & Steakburgers compares with other Food & Beverage franchises
Measured against the 256 Food & Beverage franchises on this site, using each brand's own FDD.
- Cost to open. The middle of Freddy’s Frozen Custard & Steakburgers' estimated range is $2,194,167. It costs more to open than 93% of Food & Beverage franchises here.
- Outlets leaving each year. 2.1% for Freddy’s Frozen Custard & Steakburgers. That is lower than 81% of the 165 Food & Beverage franchises with at least 10 outlets.
- Three-year growth. Freddy’s Frozen Custard & Steakburgers' franchised system grew 27%. The typical Food & Beverage franchise here grew 4.4%.
- Earnings disclosure. 152 of the 256 Food & Beverage franchises here publish earnings figures in Item 19. Freddy’s Frozen Custard & Steakburgers is one of them.
Our arithmetic from each brand's Item 7 and Item 20. Growth and departure comparisons leave out brands with fewer than 10 outlets, where one opening or closure distorts the figures. See every Food & Beverage franchise side by side.
Alert me when Freddy’s Frozen Custard & Steakburgers files a new FDD
Franchisors reissue their FDD at least once a year, and the Item 7 and Item 19 figures move. Leave an email and we will send you Freddy’s Frozen Custard & Steakburgers' updated numbers when the next document is published, plus the brand-comparison worksheet.
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