M &M custard llc chapter 11 bankruptcy 2025 freddy’s locations affected has sent ripples through the fast-casual dining world, especially if you’re a fan of those irresistible steakburgers paired with creamy frozen custard. Picture this: you’re craving that signature patty melt or a concrete mixer, only to hear whispers about your local spot potentially facing uncertainty. That’s the reality right now for dozens of Freddy’s Frozen Custard & Steakburgers outlets operated by M&M Custard LLC. On November 14, 2025, this major franchisee voluntarily stepped into Chapter 11 protection, aiming to restructure massive debts while keeping the grills hot. But what does this mean for your go-to Freddy’s? Let’s dive deep into the details, unpack the drama, and figure out if your favorite location is on the chopping block.
Understanding m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected: The Basics
Hey, if you’re like me and love a good backstory with your burger, the m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected situation starts with a classic tale of ambition gone sideways. M&M Custard LLC, headquartered in Overland Park, Kansas, isn’t some small-time operator. This company grew to become one of Freddy’s largest franchisees, running around 31 to 32 locations (numbers vary slightly in reports) across six states: Missouri, Kansas, Illinois, Indiana, Kentucky, and Tennessee.
Chapter 11 isn’t the end of the road—think of it more like a financial detox. It allows businesses to reorganize debts, shed unprofitable parts, and emerge leaner. In their filing with the U.S. Bankruptcy Court for the District of Kansas, M&M revealed about $5.2 million in assets but a whopping $27.7 million in liabilities. Ouch, right? That’s a gap wider than the drive-thru line on free custard day.
The company, along with 31 affiliates, is pushing to keep operations running smoothly. Customers shouldn’t notice immediate changes—no sudden “closed” signs or skimpy custard portions. But yes, some closures are on the horizon as part of the cleanup.
What Led to m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected?
Ever bitten off more than you can chew? That’s essentially what happened here. M&M Custard was a star performer for years. From opening their first Freddy’s in Jefferson City, Missouri, back in 2012, they skyrocketed, earning awards like Operator of the Year and racking up top sales. By early 2024, they hit 42 locations. Impressive, huh?
The turning point? A bold expansion into the Chicago market in 2021. Freddy’s corporate sweet-talked M&M into acquiring underperforming stores for $1 million, promising big upside in the Windy City. They snapped up three initially, grew to 11 through new builds and buys, and even secured exclusive development rights.
But Chicago turned into a nightmare. Despite marketing pushes and operational tweaks, those spots never gained traction. Negative cash flow, tough competition, high costs—call it a perfect storm. By 2024, M&M started dumping the Chicago portfolio, closing all 11 Illinois locations. That “toxic asset,” as they called it in court docs, dragged the whole operation down, exacerbating issues like rising food and labor costs that have plagued the restaurant industry post-pandemic.
Add in broader challenges—inflation biting into margins, supply chain hiccups, and maybe even shifting consumer habits—and boom, m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected became inevitable.
Key Financial Numbers Behind m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected
To make this real, here’s a quick breakdown:
- Assets: Roughly $5.2 million
- Liabilities: Nearly $28 million
- Creditors: 100 to 199, including big ones like Equity Bank (owed millions) and suppliers like U.S. Food
- Annual Revenue: Around $58 million before the fallout
It’s like building a custard empire on shaky ground—one bad market, and the whole sundae topples.
Which Freddy’s Locations Are Affected by m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected?
This is the question on everyone’s mind: Is my local Freddy’s safe? Good news first—the Freddy’s brand itself is rock-solid. Corporate Freddy’s Frozen Custard & Steakburgers, recently acquired by private equity firm Rhône, isn’t filing bankruptcy. They’re expanding nationwide with plans for 70 new spots in 2025 alone. This is purely an independent franchisee issue.
The affected locations are the 31 (or so) still operated by M&M Custard post-Chicago exodus. These span:
- Missouri (heavy concentration, including Kansas City area spots like Martin City and Sedalia)
- Kansas (e.g., Gardner, Overland Park vibes)
- Indiana
- Kentucky (think Hopkinsville)
- Tennessee
- A few lingering in Illinois? Wait, no—most reports say Chicago exits left minimal or zero there now.
Exact addresses aren’t fully public yet in the filings, but all current M&M-run Freddy’s are under the bankruptcy umbrella. The company plans more closures to cut losses, focusing on profitable cores. Rhetorical question: Wouldn’t you trim the fat if your business was bleeding cash?
For now, they’re seeking court approval to maintain banking, pay employees, and honor gift cards. Operations continue, but stay tuned—restructuring might mean saying goodbye to underperformers.
How m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected Compares to Other Restaurant Bankruptcies
You’re probably thinking, “Is this another Red Lobster fiasco?” Not quite. 2025 has been brutal for casual dining and frozen treats. Dairy Queen lost dozens in Texas over franchise disputes. Other Freddy’s operators have shuttered spots. Even Rita’s Italian Ice had seasonal closures turning permanent.
But Chapter 11 successes abound—think airlines or big chains that rebound stronger. M&M aims for that: reorganize, dump debt, exit lean. Freddy’s corporate called it an “isolated situation” and pledged minimal disruption.
What Happens Next in m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected?
Chapter 11 is a marathon. M&M will propose a reorganization plan, negotiate with creditors, and possibly sell assets. Customers? Keep enjoying those turtle sundaes. Employees? Wages should flow uninterrupted.
If you’re near an affected spot, grab extras now—just in case. Analogy time: It’s like your favorite band going on hiatus to record a better album. Fingers crossed M&M emerges kicking.
Long-term, this highlights franchise risks. Over-expansion without market fit? Recipe for disaster. But for Freddy’s fans outside these states, life’s custard-sweet as ever.
Impact on Customers and the Broader Freddy’s Brand Amid m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected
Let’s get personal. If your Freddy’s is M&M-owned, you might see temporary promo boosts or, sadly, a closure notice. Gift cards and loyalty points? Should be honored, but check locally.
The brand? Barely a scratch. Freddy’s systemwide sales approach $1 billion, with hundreds of locations thriving. This affects less than 10% of the chain.
Tips for Freddy’s Fans During m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected
- Check the Freddy’s location finder for updates.
- Support your local—higher sales could save it!
- Diversify your custard cravings; Culver’s isn’t going anywhere.
Conclusion: Looking Ahead After m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected
The m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected saga is a cautionary tale of growth’s double-edged sword, but it’s far from game over. With smart restructuring, M&M could protect most locations, shed debt, and keep serving those addictive steakburgers and custards. For fans, it’s a bump in the road—stay loyal, stay informed, and who knows? This might lead to even better deals as they fight to win you back. The restaurant world is tough, but resilient ones like Freddy’s (and hopefully M&M) always bounce back. Grab a concrete today; tomorrow’s not guaranteed, but hope tastes sweet.
FAQs About m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected
Will all Freddy’s locations close due to m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected?
No, only the 31-32 operated by M&M Custard are directly involved, and most should stay open during reorganization. The overall Freddy’s brand remains strong and expanding.
What caused m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected?
Primarily, a failed expansion into Chicago drained finances, combined with industry-wide rising costs and debt accumulation.
Are gift cards still valid at affected Freddy’s during m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected?
Yes, the filing requests permission to honor them, so they should work as usual for now.
How many Freddy’s locations are at risk from m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected?
Around 31 current ones across six states, with some potential closures to streamline operations.
Is the entire Freddy’s chain bankrupt because of m&m custard llc chapter 11 bankruptcy 2025 freddy’s locations affected?
Absolutely not—this is one franchisee’s issue, not corporate. Freddy’s continues growing nationwide.
For More Updates !! : valiantcxo.com
