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04/27/2022

Freddy’s signs 64 new restaurant commitments

Marianne Wilson
Editor-in-Chief
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Freddy’s Frozen Custard & Steakburgers
Freddy’s opened 11 new locations during the first quarter of 2022.

Freddy’s Frozen Custard & Steakburgers continues on the fast track for expansion.

The fast-casual chain said it has signed six new multi-unit agreements, which will bring a total of 64 new locations to new and existing markets, including North Carolina, South Carolina, Texas, Louisiana, Illinois, and California. Most notably, M&M Custard, an existing Freddy's franchisees of more than a decade, inked an agreement to expand the brand's growing footprint in Chicago with a commitment to develop 13 locations across Lake and McHenry counties.

Additionally, Freddy's opened 11 new locations nationwide during the first quarter. The company is on track to open over 50 locations throughout 2022. Long-term, it is looking to double its footprint within the next four years, bringing the total unit count to 800 by 2026.

Founded in 2002, Freddy’s was acquired by private equity firm Thompson Street Capital Partners in March 2021.

“While we've remained true to Freddy's core pillars, under new ownership, we've worked to streamline operations for our entire system, allowing for a higher AUV and enhancements to our business model as a whole,” said Thengvall, chief development officer at Freddy's. “The Upper Midwest has been a priority market for us over the past couple of years, and we're thrilled that M&M Custard will further develop our footprint in Chicago.”

[Read More: Freddy’s new prototype has no indoor dining]

In addition to the Chicago deal, the groups that signed new multi-unit agreements in Q1 and their growth plans include: 

  • In an agreement at the close of the first quarter, Lone Star Custard acquired 21 existing Freddy's units in Texas and has committed to opening an additional 30 Freddy's locations throughout the state of Texas, specifically in Dallas.
  • AOM, LLC will be adding Freddy's to its existing franchisee portfolio.
  • BSPub Holdings, LLC joins Freddy's as a new franchise group with the commitment of developingfive new Freddy's locations across the state of Texas in counties including Ector, Midland, Burnet, Gillespie and Kerr.
  • Custard & Steakburger Holdings will also add Freddy's to its extensive existing franchisee portfolio, consisting of eight units with Popeyes, Haagen Daz, and Tropical Smoothie Cafe. They will be developing four new Freddy's locations in Horry County, South Carolina.
  • Outlaw Management has agreed to develop three new Freddy's in the counties of Aransas, Calhoun and Victoria, Texas.