Freddy’s Frozen Custard & Steakburgers vs Wendy's
Franchise Comparison 2026
Both Freddy’s Frozen Custard & Steakburgers and Wendy's are quick-service restaurants franchises. Freddy’s Frozen Custard & Steakburgers requires an investment of $786K – $2.8M while Wendy's requires $410K – $3.1M. In terms of revenue, Wendy's reports higher average unit revenue at $2.1M. Wendy's has SBA lending data on file with a 0.8% charge-off rate. FranchiseVerdict rates Freddy’s Frozen Custard & Steakburgers A (Top Quintile) and Wendy's A (Top Quintile).
| Metric | Freddy’s Frozen Custard & Steakburgers | Wendy's |
|---|---|---|
| Verdict Grade | ATop QuintileTop Quintile | ATop QuintileTop Quintile |
| Investment Range | $786K – $2.8M | $410K – $3.1M |
| Franchise Fee | $35K | $50K |
| Royalty Rate | For License Agreements signed before July 1, 2025: 4.5% of all Gross Receipts; For License Agreements signed on or after July 1, 2025: 5% of all Gross Receipts | 4-6% of Gross Sales depending on restaurant type and development program (4% traditional/Groundbreaker, 5% Pacesetter, 6% military/Build-to-Suit) |
| Average Revenue (Item 19) | $1.9M | $2.1M |
| SBA Charge-Off Rate | N/A | 0.8% (200 loans) |
| Total Units | 550 | 7,397 |
| Unit Growth (YoY) | N/A | N/A |
| Year Began Franchising | 2004 | 1971 |
| FDD Year | 2025 | 2026 |
Investment Range
$786K – $2.8M
$410K – $3.1M
Franchise Fee
$35K
$50K
Royalty Rate
For License Agreements signed before July 1, 2025: 4.5% of all Gross Receipts; For License Agreements signed on or after July 1, 2025: 5% of all Gross Receipts
4-6% of Gross Sales depending on restaurant type and development program (4% traditional/Groundbreaker, 5% Pacesetter, 6% military/Build-to-Suit)
Average Revenue (Item 19)
$1.9M
$2.1M
SBA Charge-Off Rate
N/A
0.8% (200 loans)
Total Units
550
7,397
Unit Growth (YoY)
N/A
N/A
Year Began Franchising
2004
1971
FDD Year
2025
2026