Freddy’s Frozen Custard & Steakburgers Franchise Files Chapter 11 Bankruptcy
Here’s the latest update that’s caught a lot of attention in the fast-casual dining world. On November 14, 2025, M&M Custard, LLC, which operates under the Freddy’s Frozen Custard & Steakburgers brand, officially filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Kansas. Now, just to clarify, this filing doesn’t affect the entire Freddy’s brand—it impacts only the 32 locations run by this particular franchisee across six states, including Missouri, Kansas, Illinois, Indiana, Kentucky, and Tennessee.
The financial picture M&M Custard has presented is pretty stark. The company reports around $5.2 million in assets, but its liabilities are nearly $27.7 million. Despite the challenging numbers, the bankruptcy filing makes it clear that there will be some funds available for unsecured creditors. In simpler terms, this process is designed to allow the company to reorganize its debts rather than shutting down immediately, giving it a chance to stabilize and keep operating.
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For customers, the good news is that, at least for now, all 32 locations are expected to remain open. The company has requested permission to continue normal operations, manage cash flow between locations, and handle daily business while the restructuring takes place. However, the filing also notes that some stores may eventually be closed as part of cost-cutting and consolidation efforts. Notable locations included in the filing are Gardner, Kansas, Martin City, Missouri, and Sedalia, Missouri, along with other outlets in the five other states mentioned.
On the creditors’ side, M&M Custard has listed several unsecured creditors, including Equity Bank, U.S. Food, and Budderfly LLC, along with other insiders tied to the company. How much these creditors eventually recover will depend on the restructuring plan approved by the bankruptcy court.
This situation also reflects the broader pressures in the fast-casual and frozen dessert sectors, which have seen volatility in recent years. Seasonal closures are common, and similar financial difficulties have impacted other franchise operators, like Dairy Queen in Texas earlier this year.
For now, customers can continue enjoying their favorite Freddy’s frozen custard and steakburgers at the affected locations, though it’s wise to stay updated in case any menu changes or store closures happen in the coming months. The key takeaway here is that while M&M Custard navigates its financial restructuring, the Freddy’s brand itself remains strong and unaffected, continuing to operate and expand through other franchisees.
So, this Chapter 11 filing is essentially a lifeline for the franchisee—giving it a chance to reorganize and survive, while keeping the doors open for fans of Freddy’s. Customers, for now, have little to worry about, but the coming months will be critical in shaping how these locations emerge from this financial challenge.
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