Freddy's, L.l.c. Franchise Review 2026: Ratings & Verdict

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

Freddy's, L.L.C. fits first-time franchise buyers looking for a mature food & beverage concept.

✓ Strengths

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$855K - $2.8M

Franchise fee (Item 5)

$35K

Royalty (Item 6)

5% + 2.5–3% ad

Item 19 median rev

$1.82M

System size (Item 20)

542 +47

Agreement term

15 yrs

Years in business

23+ yrs

Company-owned units

36

Item 3 litigation

None disclosed

Buyer qualifications

✓Exclusive territory✓Semi-absentee eligible✓No bankruptcy disclosed✓No Item 3 litigation

Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

Item 19 revenue distribution

Where units actually land — not just the headline average.

P25

$1.48M

Median

$1.82M

P75

$2.21M

▪ n = 477 units · franchised restaurants · fiscal year 2025 · Source: 2026 FDD Item 19

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 5% + ad fund 2.5–3% on gross sales.

PROJECTED ANNUAL SALES$1,820,000

$100k$3.3M

Royalty (5%)

Ad fund (2.5–3%)

Total / year

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

580

Total units open

47 franchised, 2 company-owned

Units opened last year

19 franchised

Units closed last year

30 total units

Net unit growth

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

5

Risks to review

4

Strengths identified

5

Questions to ask

Industry Benchmarks

How Freddy's, L.l.c. ranks against 561 Food & Beverage peers we've analyzed.

Initial investment

84th pct · of 561 peers

Franchise fee

37th pct · of 561 peers

System size

87th pct · of 561 peers

Food & Beverage industry averages

Avg investment

$594K - $1.4M

Avg franchise fee

$44K

Avg system size

346

Franchises analyzed

561

How Freddy's, L.l.c. stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Freddy's, L.l.c. Disclosed $35K $855K - $2.8M 5% 542
NativewahlSimilar price None $60K $1.1M - $2.8M 8% 21
Doctor's AssociatesBiggest system Disclosed $15K $227K - $630K 8% 18,773
Vintage Hospitality GroupTop-rated in category Disclosed $50K $3.5M - $6.4M 5.5% 33

Compare side-by-side ↗

Franchise research guides

Free explainers to go deeper before you sign.

Get franchise information FREE

Frequently Asked Questions

How much does a Freddy's, L.L.C. franchise cost?

Freddy's, L.L.C. requires a $35,000 initial franchise fee and a total initial investment range of $854,834–$2,802,000, per the most recent FDD on file.

Does Freddy's, L.L.C. disclose financial performance (Item 19)?

Yes. Freddy's, L.L.C. discloses Item 19 financial performance representations with reported revenue around $1,820,745. See the financials sub-page for the full distribution.

What ongoing fees does Freddy's, L.L.C. charge?

Franchisees pay a royalty of 5% and an advertising fund contribution of 2.5% to 3.0% on gross sales as defined in Item 6 of the FDD.

How many Freddy's, L.L.C. locations are there?

As of their 2026 FDD, Freddy's, L.L.C. has 542 total locations, with 47 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

Does Freddy's, L.L.C. grant exclusive territory?

Yes. Freddy's, L.L.C. grants franchisees an exclusive territory under Item 12 of the FDD. Note that exclusive territories often carve out online sales, alternative distribution channels, and non-traditional venues — review the full Item 12 language before signing.

What are the renewal and exit terms?

Per the FDD, Freddy's, L.L.C. discloses an initial agreement term of 15 years, a transfer fee of $5,000. Review Items 10 and 17 for the full renewal and termination provisions.

Cite this page

Related on this site


This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt

Site index for AI agents: llms.txt · sitemap