Freddy's Frozen Custard & Steakburgers
Freddy's, L.L.C.
Company Information
3020 N. Cypress Street, Suite 200
Freddy’s, L.L.C. a Kansas limited liability company, was organized on October 17, 2003. Their principal business address is 260 North Rock Road, Suite 200, Wichita, Kansas 67206. They began franchising Restaurants in 2004.
We offer a development agreement (the “Development Agreement”) m the form attached as Exhibit A The Development Agreement grants the right and obligation to establish and operate a certain number of Freddy’s Frozen Custard & Steakburgers restaurants (collectively, the “Restaurants,” individually, a “Restaurant”) m a specified area (the “Assigned Area”) at specific locations to be designated m separate license agreements You will establish each Restaurant under the development schedule m the Development Agreement The Development Agreement provides exclusivity and, upon successful completion ofthe development schedule, a right of first refusal to you for additional Restaurants within the Assigned Area As a condition to exercising the development right for each Restaurant, you must secure a location located m the Assigned Area approved by us After you provide us with all information required by the Development Agreement for site approval, we have 30 days to approve or reject your proposed site See Item 11 After we approve the location for the Restaurant, you must sign a license agreement (the “License Agreement”) m the form attached as Exhibit B for each right to develop a Restaurant exercised under the Development Agreement The License Agreement governs the construction and operation of the Restaurant at the approved location and provides an area of exclusivity within a radius ofthe approved location (the “Assigned Territory”) In certain areas, we may offer individual License Agreements for the establishment and operation of one Restaurant at a specified location You will pay separate fees for the Development Agreement and the License Agreement The franchise offered is for the establishment and operation of a Restaurant under the License Agreement
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Franchise Rating
Franchimp Summary Rating
6/10
Earning Transparency
10/10
Investment Accessibility
1/10
Summary of potential earnings
$1,810,787 / unit
Average Revenue During 2022Quick Service Restaurants (QSR)
Franchise System Development
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Distribution of Freddy's Frozen Custard & Steakburgers Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $55,000 Maximum: $95,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $897,936 Maximum: $1,625,165
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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