Quick Verdict · who it fits
Freddy's, L.L.C. fits first-time franchise buyers looking for a mature food & beverage concept.
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.
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
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
Free AI summary — the first read on the filing.
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
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
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
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 |
Free explainers to go deeper before you sign.
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.
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.
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.
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.
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.
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.
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