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TSCP acquires Freddy’s Frozen Custard and Steakburgers

Acquisition of Freddy’s to accelerate franchise growth, tech deployment

Thompson Street Capital Partners (TSCP) acquired Freddy’s Frozen Custard & Steakburgers for an undisclosed amount. Founded in 2002 by Randy Simon and Scott Redler, Freddy’s Custard has since grown to nearly 400 restaurants primarily through franchising.

The Witchita, Kan.-based quick-service chain offers cooked-to-order steakburgers, fries and churned frozen custard. In 2020, Freddy’s opened 30 restaurants and signed 11 development agreements for up to 70 new restaurants.

According to the company, store AUV rose 6.5%.

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“By operating The Freddy’s Way, we have developed close relationships with each and every franchisee, prioritizing their growth and success above all,” said Scott Redler, co-founder and chief executive. “We have continued to invest in an unparalleled corporate support system to ensure our operators have the resources they need, and our partnership with TSCP will elevate those capabilities and enable us to take our franchisee support to another level.”

St. Louis-based TSCP specializes in investment in founder-led middle market businesses and has managed portfolios worth more than $2.6 billion.

Bob Dunn, Managing Partner, TSCP, said, “Freddy’s is a highly unique, scaled franchisor platform that has built a premium brand over the past two decades with leading franchisee retention, remarkable growth, and a passionate guest following of ‘FredHeads.’ We look forward to working with the outstanding team at Freddy’s to accelerate the Company’s already exceptional growth.”

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TSCP plans to ignite the rate of franchise growth at the burger and custard chain and also emphasize and hone in on deployment of technology and marketing capabilities.

Less than 10% of the Freddy’s Custard system is company-owned.

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