# Freddy's Franchise Funding for Existing Owners

> Funding for existing Freddy's owners: custard machines, flat-top grills, drive-thru work and management payroll, sized from each restaurant's deposits.

Source: https://mfebusinessloans.com/franchise-funding/brands/freddys/ (Merchant Fund Express, updated 2026-10-21)

## The short answer

Running a Freddy's already? Merchant Fund Express funds existing Freddy's franchisees with equipment financing, working capital, lines of credit, revenue-based financing, business loans and merchant cash advances, from $25,000 to $5,000,000. We read each restaurant's deposits after royalty, the marketing fee and existing payments, with attention to whether it has a drive-thru. A complete file gets a same-day decision, and funding often follows the next business day.

## Who is this Freddy's page for?

Franchisees with open Freddy's Frozen Custard and Steakburgers restaurants. The brand publishes three formats: in-line without a drive-thru, end cap with a drive-thru, and standalone freestanding buildings with a drive-thru. Each format has a different cost base and sales mix, and the franchisor expects four to six managers per restaurant, so management payroll is a real line item.
The kitchen is a flat-top grill for smashed steakburgers, fryers for shoestring fries, and custard machines with dipping and topping stations. See the burger franchise sector guide and the restaurant industry page.

## What the franchisor publishes

Freddy's: facts from official sources
Initial franchise fee: $35,000 for a single restaurant (source)
Royalty: 4.5% of gross sales (source)
Advertising fund: Marketing fee of 1.5% (source)
Total initial investment: $785,936 to $2,753,566 (in-line without drive-thru $785,936 to $1,198,665; end cap with drive-thru $1,277,598 to $2,497,566; standalone with drive-thru $1,487,598 to $2,753,566) (source)
Locations: Over 500 locations in 36 states, including Canada (as stated by the franchisor, 2026) (source)
Published formats: In-line (no drive-thru), end cap with drive-thru, standalone freestanding with drive-thru (source)
US franchising status: Actively franchising (single-unit, multi-unit and master franchise) (source)
Checked Oct 2026 against official sources: the franchisor's own franchising site, its FDD or SEC filings, or the SBA Franchise Directory. Figures change; confirm current numbers in the latest Franchise Disclosure Document. Figures we could not confirm from an official source are left out.

## Every way to fund your Freddy's location

Already running a Freddy's location and need capital? Merchant Fund Express funds existing franchise owners with every product below. Terms depend on the business's revenue and history.
Franchise business loan: a term loan for a drive-thru lane or a refresh.
Merchant cash advance: paid from card sales, when capital is needed quickly.
Revenue-based financing: payments that adjust when custard sales dip in winter.
Business line of credit: a revolving line for beef, dairy mix and paper orders as volume climbs.
Equipment financing: custard machines, flat-top grills, fryers and walk-in freezers financed on a vendor quote.
Working capital: short capital to carry a fuller management team while a new hire trains.

## Which problems do Freddy's owners bring to a review?

Custard machine or flat-top replacement
Custard and steakburgers are the two halves of the name, and both depend on a few heavy pieces of equipment. Equipment financing on a quote spreads replacement cost; see franchise equipment financing.
Payroll for a deep management bench
Four to six managers per restaurant is a fixed cost that does not shrink in a slow week. Working capital or a line keeps it steady; see restaurant payroll funding.
Drive-thru versus in-line economics
An in-line unit without a lane leans on dine-in and pickup. Owners weighing a lane or a move to an end cap bring that project to a review; see adding a drive-through.

## Which product fits which Freddy's need?

Need | Product | Published requirement it leans on | What to send |
Custard machines, dipping cabinets | Equipment financing | Vendor quote and useful life | Quote, 3 months of statements |
Flat-top grill, fryers, walk-in | Equipment financing or working capital | Quote; Tier 2: 6+ months, FICO 600+ | Quote, statements |
Management payroll gap | Working capital | Tier 2: $60K verifiable revenue, $800 minimum daily balance | Statements, payroll summary |
Beef, dairy and paper orders | Line of credit | Tier 1: 3+ years, FICO 650+, 8+ deposits a month | Statements, debt schedule |
Drive-thru addition or refresh | Business loan | Tier 1; applicant owns 50%+ | Contractor bid, statements |

## How does the review read a Freddy's restaurant?

Entity. We read the LLC that operates the restaurant and holds the deposit account; multi-unit owners usually have one per location.
Format-specific deposits. Drive-thru units settle heavier, steadier card volume; in-line units show more dine-in and pickup timing.
Royalty and marketing fee drafts. Read as recurring obligations; capacity is sized after them, as explained on royalty debits in a funding file.
Food supplier drafts. Beef, dairy mix and paper payments are cost of goods.
Existing positions. Leases and advances are counted; a new structure can sometimes lower the combined payment.

## What documents does a Freddy's owner send?

About 3 months of business bank statements per restaurant entity, as bank PDFs
The five-minute application, beginning with a soft credit pull
Vendor quotes for custard, grill or refrigeration equipment
A list of current advances, loans and leases
Full financials only for requests above $250,000
Merchant Fund Express accepts ITIN applicants and provides Spanish-speaking support.

## A hypothetical Freddy's budget scenario

Consider an end cap restaurant with a drive-thru depositing $165,000 a month. Food and paper run $50,000, payroll $48,000, royalty and marketing $9,900, rent $12,000 and existing payments $3,600. The owner wants a custard machine and a new flat-top grill quoted at $58,000.
Monthly deposits$165,000
Less food, payroll, franchisor drafts, rent, payments$165,000 - $50,000 - $48,000 - $9,900 - $12,000 - $3,600 = $41,500
$58,000 over 48 monthsabout $1,208/month before cost of funds
Share of what remains$1,208 / $41,500 = about 2.9%
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.

## What if you are buying or opening a Freddy's instead?

A restaurant that has not opened, or one you have not yet operated, needs history before Merchant Fund Express can review it; see buying a franchise. Owners with open restaurants who are adding one are read on current deposits; see second location funding. Taking over an operating Freddy's follows franchise transfer financing.

## Keep reading

Burger franchise funding: how burger and custard concepts are reviewed
Franchise brands we cover: other brand pages
Franchise equipment financing: custard and grill equipment on a quote
Franchise payroll funding: carrying a full management team
Adding a drive-through: funding a lane project

## Common questions

### Can I finance a custard machine for my Freddy's?

Yes. Custard machines and dipping cabinets are financed on a vendor quote and their useful life, with the equipment as the stated purpose.

### Does an in-line Freddy's without a drive-thru qualify?

Yes. Any open restaurant with business deposits is read the same way: deposits, existing payments and history.

### What if I own several Freddy's restaurants?

Each entity is read on its own deposits and drafts, and a request can cover one restaurant or several.

### How quickly can a Freddy's owner get a decision?

A complete file gets a same-day decision, and funding often follows the next business day. The application takes about five minutes.

### Are you affiliated with Freddy's?

No. Merchant Fund Express is independent. We use the Freddy's name only to identify the owners this page is for; it does not mean the franchisor endorses or works with us.

Merchant Fund Express is independent. Not affiliated with or endorsed by Freddy's or its franchisor.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=mfebusinessloans.com&utm_medium=franchise&utm_campaign=franchise-funding&utm_content=freddys