Archive · 17 Nov 2025
Freddy's Frozen Custard Operator Files for Bankruptcy Amid Industry Woes
A big company that runs many Freddy's Frozen Custard & Steakburgers restaurants is having money problems.
They asked the court to help them fix their money troubles so they can keep running their stores.
They have more bills than money, and it's hard for them because food, workers, and rent cost a lot more money now.
People are also eating out less because they don't have as much money.
Other restaurants like Dairy Queen are having similar problems too.
M&M Custard, a major operator of Freddy's Frozen Custard & Steakburgers, has filed for Chapter 11 bankruptcy protection.
The franchise group operates dozens of Freddy's locations across six states, with 31 affiliated locations tied to the bankruptcy case.
The company reported assets of $5.2 million and liabilities of $27.7 million, with up to 199 creditors.
Stores are expected to remain open during the restructuring process, but some local reports suggest potential closures.
The bankruptcy highlights broader economic pressures on the fast-food industry, including inflation, rising costs, and reduced consumer spending.
- Who
- M&M Custard, a major operator of Freddy's Frozen Custard & Steakburgers
- What
- Filed for Chapter 11 bankruptcy protection
- When
- On Friday
- Where
- US Bankruptcy Court for the District of Kansas
- Why
- Due to significant financial pressures including inflation, rising costs, and declining consumer spending
- Company Filing for Bankruptcy
- M&M Custard
- Brand Operated
- Freddy's Frozen Custard & Steakburgers
- Bankruptcy Type
- Chapter 11
- Jurisdiction
- US Bankruptcy Court for the District of Kansas
- Assets Listed
- $5.2 million
- Liabilities Listed
- $27.7 million
- Number of Creditors
- Up to 199
- Affiliated Locations Tied to Case
- 31