You walk into a familiar burger joint, smell the heat from the grill, and hear the custard machine hum. It’s comforting. Now imagine hearing that the company behind many of those stores is in deep trouble. That’s the story of M&M Custard LLC, a major franchisee of Freddy’s Frozen Custard & Steakburgers, which filed for protection in court. Keep reading to get the full picture—and to understand what it could mean for your next steakburger run.
Franchise Growth Meets A Big Crunch
M&M Custard started in 2010 and opened its first Freddy’s location in Jefferson City, Missouri, in May 2012, quickly followed by another the next month in Sedalia. Over the years, it expanded across Missouri, Kansas, Illinois, Indiana, Kentucky, and Tennessee, and by 2025 it counted about 33 operating stores.
Just when things seemed flush, the company filed for Chapter 11 on November 14, 2025, in a federal court handling bankruptcy cases in Kansas. The petition lists assets at roughly $5 million and liabilities of around $28 million. Chapter 11 is a form of bankruptcy that lets a business keep operating while it reorganizes its debts under the court’s supervision. It gives the company breathing room to negotiate with lenders instead of shutting down immediately.
What that means: one of Freddy’s largest operators is borrowing time, trying to keep doors open while working through financial strain.
What Happens Inside When A Franchisee Collapses
Even though the filing is serious, it doesn’t mean all stores will shut tomorrow. The company remains open for business while it works through reorganization.
Behind the scenes, you might notice changes: reduced hours, fewer menu items, slower repairs, or less hustle at the counter. None of that confirms closure, but it signals caution. The parent brand, Freddy’s, itself is not bankrupt, so these issues stem from the franchisee, not the national company.
Why It Matters To You And The Chain
When a franchisee like M&M Custard struggles, the ripple effects reach beyond one kitchen. First, your local store might face renovation delays or ownership changes. Second, supplier relationships may shift, affecting menu consistency. Third, staff turnover may increase.
For fans of Freddy’s, it raises questions: Will your go-to custard stop swirling the same way? Will your drive-thru window slow down? It’s not just about one dinner out—it’s about how stable that tradition of burgers and frozen treats remains.
What You Can Do As A Regular Visitor
- Check local hours and look for changes in openings/dining room setup.
- Visit your store and give it a boost—strong sales can help the location stay viable.
- Ask staff about any upcoming remodels or changes—they may know.
- Keep in mind: the brand still stands behind Freddy’s, but the local operator is on shaky ground.
In the end, whether you’re grabbing fries with your custard or cutting in line for a double steakburger, your next visit may carry more weight than you expected. M&M Custard is remodeling its finances while you remodel your appetite. Stay tuned and enjoy the meal—fast food history is being written one flavor-packed bite at a time.
