Freddy’s Frozen Custard & Steakburgers — a fast-casual franchise concept known for its steakburgers, shoestring fries, and frozen custard treats — has been acquired by investment funds affiliated with global private equity firm Rhône. The chain was acquired from Thompson Street Capital Partners, which has owned Freddy’s since 2021.
While details of the sale were not disclosed, Reuters reported an estimated sale price of $700 million, including debt. The acquisition is expected to drive continued market expansion for the Missouri-based restaurant chain.
The Freddy’s brand currently has more than 550 locations in the U.S. and Canada, generating more than $1 billion in system-wide sales in the past year. Seven of those locations are in Pennsylvania — six of them in Chester, Delaware and Montgomery counties.
“Over the last few years, we’ve seen steady growth and surpassed many milestones for our brand, while simultaneously strengthening our franchise system and building a loyal guest following. We’re excited to take our success to the next level with this new partnership with Rhône,” Chris Dull, president and CEO of Freddy’s, said in a statement, adding that the acquisition marks a pivotal moment for the chain.
The current leadership team will remain in place, the company said.
Following the change in ownership, the brand remains committed to providing the same items guests have come to love, according to the release.
Rhône has significant experience supporting businesses in their global expansion efforts and partnering with management teams to drive growth and create long-term value, the company said.
“We see a compelling opportunity to partner with Chris and the rest of the leadership team to help bring the unique Freddy’s offering to more customers around the world and support the company in this next chapter of growth,” Lucas Flynn, a managing director at Rhône, said in a statement.
Freddy’s in Our Region
Freddy’s first came to Pennsylvania as a franchise in 2012, when businessman Steve DiMarco opened the first area Freddy’s Frozen Custard & Steakburgers in Broomall, at 2084 Sproul Road. DiMarco’s Broomall location was followed in 2017 by a location at 1302 Wilmington Pike in Birmingham Township; then 221 Eagleview Blvd., in Uwchlan Township in 2018; and DiMarco’s fourth location at 5051 Edgmont Ave. in Brookhaven in 2019.
DiMarco discovered the chain while on a trip with his daughter to tour the University of Kansas. After a second visit a few months later, DiMarco reached out to Scott Redler, one of the founders of the company, who came to meet him, and later paid a visit to Pennsylvania, DiMarco told MediaNews Group in 2018.
At the time, Freddy’s had about 60 restaurants and was not interested in expanding to the East Coast, DiMarco said. The company now has franchised locations in 36 states and Canada.
DiMarco sold his four Freddy’s to JRI Hospitality in November 2021.
There are also two Freddy’s in Montgomery County — at 70 Buckwalter Road, Limerick Township, and 220 Forty Foot Road, Towamencin. The seventh Pennsylvania location is in Lancaster.
