Freddy's Frozen Custard & Steakburgers, Inc.

Who owns Freddy's Frozen Custard & Steakburgers?
Freddy's is privately held by Rhone Group, a global private equity firm that acquired the chain in September 2025 for approximately $650 million. Rhone acquired Freddy's from Thompson Street Capital Partners, which had owned it since 2021. The founding Schimpf and Simon families remain involved with the brand. The company is not publicly traded.

Who founded Freddy's?
Freddy's was founded in 2002 by Scott Schimpf, Bill Simon, and Randy Simon in Wichita, Kansas. The restaurant was named after Scott Schimpf's father, Fred Schimpf, a World War II veteran who inspired the brand's retro Americana aesthetic and values.

How many Freddy's locations are there?
Freddy's operates 580 locations across 36 states as of the end of 2025. Of these, 542 are franchised and 38 are company-owned. The company expects to open approximately 60 locations in 2026, likely surpassing 600 total restaurants.

What makes Freddy's different from other burger chains?
Freddy's differentiates itself through its frozen custard, which is a richer and denser version of ice cream churned fresh throughout the day. The company also offers steakburgers made with fresh, never-frozen beef, and all-beef hot dogs. The combination of premium frozen custard and steakburgers in a fast-casual setting is relatively unique in the restaurant industry.

Is Freddy's publicly traded?
No, Freddy's is privately held by Rhone Group. The company is not publicly traded and does not file financial reports with the SEC.

What is Freddy's average unit volume?
Freddy's average unit volume is approximately $1.9 million for standalone drive-thru franchised restaurants. End-cap units with drive-thrus average approximately $1.8 million, while in-line units average approximately $1.4 million.

Where is Freddy's expanding?
Freddy's is prioritizing growth in the Northeast, Rust Belt, Midwest, Pacific Northwest, Northern California, and Florida. In 2025, the company signed 22 multi-unit development agreements for 118 new restaurants across the U.S. and Canada. Key expansion markets include Ohio, Nashville, North Carolina's coastal counties, Pennsylvania, and New Jersey.

How much does it cost to open a Freddy's franchise?
The initial investment for a Freddy's franchise varies by format. An in-line restaurant can be developed for approximately $854,834, while a standalone restaurant requires an investment of over $1.5 million. The company has expanded its real estate focus to include endcap and in-line locations to provide franchisees with greater flexibility and lower initial investment costs.

Freddy's Frozen Custard & Steakburgers was founded in 2002 by Scott Schimpf, Bill Simon, and Randy Simon in Wichita, Kansas. The restaurant was named after Scott Schimpf's father, Fred Schimpf, a World War II veteran who inspired the brand's retro Americana aesthetic and commitment to genuine hospitality.

The founders developed a concept centered on three core products: frozen custard, which is a richer and denser version of ice cream churned fresh throughout the day; steakburgers made with fresh, never-frozen beef pressed thin and cooked on a flat grill; and all-beef hot dogs. The brand differentiated itself from other fast-food chains by emphasizing quality ingredients and a made-to-order approach.

The first Freddy's location opened in Wichita in 2002 and quickly gained a loyal following. The company began franchising in 2004, allowing the brand to expand beyond Kansas. Freddy's grew steadily through the 2000s and 2010s, expanding across the Midwest and then nationally.

By 2017, Freddy's had 281 locations with an average unit volume of $1.463 million. The chain opened a net of 33, 61, 35, and 31 restaurants from 2021 through 2024, steadily increasing its average unit volume to $1.901 million.

In 2021, private equity firm Thompson Street Capital Partners acquired a majority stake in Freddy's, partnering with the founding families to support continued expansion. At the time of the acquisition, Freddy's had approximately 400 locations and had just opened 30 U.S. restaurants in its 20th year of business.

Under TSCP ownership, Freddy's continued to scale. The company opened 51 new restaurants in 2025, bringing its total to 580 locations across 36 states. The year also saw 19 terminations, a higher number than the seven in 2024 and zero in 2023, reflecting the challenges of managing a growing franchise network.

In September 2025, Rhone Group acquired Freddy's for approximately $650 million. The acquisition was funded with a $350 million term loan and approximately $311.9 million in equity from Rhone's indirect parent company. The transition from TSCP to Rhone marked a new phase for the brand, with continued focus on franchise growth and expansion into new markets.

Looking ahead, Freddy's expects to open approximately 60 locations in 2026, likely surpassing 600 total restaurants. The company is prioritizing growth in the Northeast, Rust Belt, Midwest, Pacific Northwest, Northern California, and Florida. Seven restaurants were already scheduled to open in Q1 2026.

Freddy's has been recognized on multiple industry rankings. In 2025, the company was named No. 23 on Fast Casual's Top 100 Movers and Shakers, No. 85 on Entrepreneur's Franchise 500, and No. 36 on Yelp's 50 Most Loved Brands.

Freddy's has not been subject to significant public controversy. The company has maintained a positive reputation for food quality and franchise satisfaction. Like all restaurant chains, Freddy's is subject to food safety regulations and labor laws across the 36 states where it operates.

The 19 franchise terminations in 2025, up from seven in 2024 and zero in 2023, represent a notable increase that could indicate operational challenges at certain locations. However, the company has not disclosed specific reasons for the terminations, and the overall franchise network continues to grow.

The transition from Thompson Street Capital Partners to Rhone Group in September 2025 introduced a new ownership structure. Private equity ownership typically involves pressure for growth and eventual exit, which can create tension between short-term financial performance and long-term brand building.