Are you looking for a renowned, oldest, and rapidly growing Frozen Custard & Steakburgers Franchise? Here is some good news – Freddy’s offers an incredible opportunity to become a franchisee and it would certainly end your research for a Food and Beverages chain.
In this article, we’ll dive deep into the Freddy’s Frozen Custard & Steakburgers Franchise with capital requirements, fee, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
- Franchise Fee: $30,000
- Royalty Fee: 4.5%
- Ad Royalty Fee: 1.5-3%
- Net Worth: $1,000,000
- Cash Requirements: $400,000 – $800,000
- Agreement Period: 15 Years, Renewable
- Total Initial Investment: $794,254 – $2,327,329
Table of Contents
Overview of Freddy’s Franchise
Co-founded in 2002 by brothers Bill and Randy Simon with their friend and business partner, Scott Redler, Freddy’s Frozen Custard & Steakburgers is one of America’s fastest-growing and most renowned food and beverage chains.
The chain is quite famous for serving varieties of delicious cooked-to-order steakburgers, rich & creamy frozen custard, combo meals, sides, and sauces.
With its expertise spanning over 20 years, Freddy’s has established itself as a leading player in this industry, serving delicious food at more than 493 outlets.
Freddy’s chain offers world class support and makes significant investments in new technology to help your business stay relevant with customers, so are you ready to join the Steakburgers revolution.
Please continue reading if you are passionate about food franchises, and this little snippet about the Freddy’s chain excites you.
We will offer comprehensive and well-researched information regarding Freddy’s chain, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.
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Freddy’s: The Journey
You may wonder, how was it named- Freddy’s? The chain was named after Freddy’s Simon, the co-founder’s father who served in the military.
Later, he was involved in the hospitality industry and his sons, Bill and Randy Simon, co-founded it in 2002 and took it to the next level by offering world-class services, delicious food, cleanliness, and timeless traditions.
Key facts on Freddy’s Chain
| Sr No. | Type | Private |
| 1 | Trade Name | Freddy’s Frozen Custard & Steakburgers |
| 2 | Industry | Food & Beverages, Restaurant, and QSR |
| 3 | Founded | 2002 |
| 4 | Founders | Bill and Randy Simon |
| 5 | Corporate Address | 260 N. Rock Rd., #200 Wichita, KS 67206 |
| 6 | Number of locations | Over 493 locations |
| 7 | Area served | Across several states in the US, and other countries |
| 8 | Franchise model | Multiple and flexible model, right from college campus, dine-in, restaurants |
| 9 | Menus | Steakburgers, rich & creamy frozen custard, combo meals, sides, sauces. |
| 10 | Revenue Or Sales | $1.88 million- Average Unit volume |
| 11 | Website | https://www.freddys.com/ |
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Reasons to Choose Freddy’s franchise?
There could be several reason to start a Freddy’s outlet, but we will highlight a few prominent reason to own it; let’s jump in-
- Pocket friendly menu:
- Serving varieties of delicious food and that too at an affordable pricing makes its a desirable franchise to operate. It also helps the new franchise owners to cater food to all categories of consumers.
- Ease of operations:
- To operate a Freddy’s chain successfully and hassle-free, it is important to have a solid training program. Like any other food franchise, Freddy’s offers a best-in-class training program to its franchisees.
- high quality ingredients:
- The chain only uses premium ingredients and abide by its own high standards, that makes their food so craveable.
- Flexible and supported franchise model:
- Interested prospect can take up freddy’s outlet based on their financial limitation, and can leverage same support systems like other franchises.
- Legacy vendors:
- Food businesses may fail without a proper supply chain, but Freddy’s is an exception. The chain has been in partnership with their vendors from the beginning, which solves the entire supply chain problem.
- Awards and recognition:
- Freddy’s has been recognized and awarded by multiple renowned platforms such as Entrepreneur, and many others.
- System-wide growth:
- With its expertise and experience, freddy’s has experienced a staggering new restaurant growth of 120% in past 5 years. They have a proven business model and a dedicated franchise owner operating Freddy’s outlets.
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How much does a Freddy’s Franchise Cost?
To start a Freddy’s franchise, one would at least require an initial investment of $794,254 – $2,327,329. This initial investment does cover the franchise fee, marketing fee, and other necessary expenses.
Nevertheless, the franchise does provide support in selection and setting up a Freddy’s outlet, but we advise you to conduct proper market research before opening an outlet.
Freddy’s Franchise Fee
The franchise fee for the Freddy’s is $30,000. Furthermore, to qualify financially, franchise candidates and their partners/investors must have minimum net worth of $1,000,000 with available liquidity of $400,000 – $800,000.
Additional Cost for Freddy’s outlet
Typically, to run and maintain a Freddy’s outlet, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.
The on-going royalty fee for Freddy’s Frozen Custard & Steakburgers Franchise is 4.5% and ad royalty fee is 1.5-3% of gross sales.
| Type of Fee | Cost and Other Details |
|---|---|
| Franchise Fee | $30,000 |
| Royalty Fee | 4.5% |
| Ad Royalty Fee | 1.5-3% |
| Net Worth | $1,000,000 |
| Cash Requirements | $400,000 – $800,000 |
| Agreement Period | 15 Years, Renewable |
| Total Initial Investment | $794,254 – $2,327,329 |
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Are Freddy’s Franchise Profitable?
Considering the Freddy’s expertise of over 20 years, a wide range of affordable & delicious food offerings, low investment cost and royalty fee, extensive training & marketing support, proven business model, and a loyal fan base, one may anticipate to earn an impressive profit margin.
Nevertheless, According to the recent FDD, the Average Annual Gross Receipts of 356 franchised restaurants that were open for the entire period from December 31, 2020 to September 8, 2021 were resulted an whopping AUV sales of $1.88 million.
These number may vary depending on the outlets geographical locations.
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What does it take to own a Freddy’s franchise?
- Interested applicant must meet the financial requirements of the franchise i.e. minimum net worth of $1,000,000 with available liquidity of $400,000 – $800,000.
- Candidates and its team should be willing to work in the Food and Beverages industry, and one should be ready to grow at least 4 Freddy’s unit
- Interested prospects must have strong background in operations, franchising or restaurant management preferred.
- In order to become a franchisee, interested parties must complete the Freddy’s training program and adhere to its standards.
- One should be community-focused with a passion to help Team Members grow.
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How to Get a Freddy’s Franchise?
Getting a Freddy’s chain requires a relatively moderate investment and in return may offers an impressive profit and low risk. Nevertheless, Freddy’s chain may offer several benefits, and interested candidates can take up franchise outlet locally and globally through their expertise and endless support systems.
To get a Freddy’s chain franchise, please visit their official website and fill in the required details in franchise form.
Fill in the personal and location details such as Region of Interest, Name, Email, Phone number, City and State, Cash available, Net worth, Prior restaurant experience, and other requirements information.
Steps to owning your Freddy’s Steakburger franchise
- Experience
- Interested applicant must have experienced their food and hospitality, and love our brand culture.
- Apply for franchise
- Fill in the non-binding application.
- Chat and financial forecast
- Talk with their Franchise Development team and get a Franchise Disclosure Document (FDD).
- Confirmation
- Get an initial confirmation that you meet their Franchise Owner qualifications.
- Meet
- Come to a Discovery Day in Wichita, KS to meet with their leaders.
- Finalize
- Confirm your territory, number of restaurants, timeline and Development Agreement.
- Celebrate
- Welcome to the Freddy’s Family. Training (and fun) begins.
Final Takeaway
Considering its growth potential, unique, affordable, delicious & diverse menu range, proven business model of over 20 years, brand recognition & awareness, opening a Freddy’s outlet will prove profitable to the interested aspirants.
Furthermore, the franchise is seeking qualified candidates with the financial and management resources to develop multiple locations or at least 4 units in a market and the passion to successfully operate a concept that has been proven over the past 20 years.
With an Initial investment of $794,254 – $2,327,329 and a franchise fee of $30,000, Freddy’s chain may offers an outstanding profit margin to its stake holders.
The Bottom line – In case you are interested in the food and beverages industry and want to take advantage of the opportunity, then Freddy’s franchise is for you. With its sheer legacy and robust supply chain, one may experience a stable and steady growth for their entrepreneurial journey.
Good Luck!! Happy Franchising!!
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FAQ
How much does it cost to Start a Freddy’s Steakburgers franchise?
Ans: To open a Freddy’s outlet, one would at least require an initial investment of $794,254 – $2,327,329. There are some other cost involved and a few of them are list below;
Franchise Fee: $30,000
Royalty Fee: 4.5%
Ad Royalty Fee: 1.5-3%
Net Worth: $1,000,000
Cash Requirements: $400,000 – $800,000
Agreement Period: 15 Years, Renewable
Total Initial Investment: $794,254 – $2,327,329What is the royalty fee for Freddy’s Steakburgers?
Ans: To be an approved Freddy’s outlet holder, one needs to have an initial investment of $794,254 – $2,327,329, and the Freddy’s franchise royalty fee is 4.5%.
How many locations does Freddy’s have?
Currently, there are over 493 freddy’s outlets across the globe.
