Wendy's vs Freddy’s Frozen Custard & Steakburgers
Franchise Comparison 2026
Both Wendy's and Freddy’s Frozen Custard & Steakburgers are quick-service restaurants franchises. Wendy's requires an investment of $410K – $3.1M while Freddy’s Frozen Custard & Steakburgers requires $786K – $2.8M. 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 Wendy's A (Top Quintile) and Freddy’s Frozen Custard & Steakburgers A (Top Quintile).
| Metric | Wendy's | Freddy’s Frozen Custard & Steakburgers |
|---|---|---|
| Verdict Grade | ATop QuintileTop Quintile | ATop QuintileTop Quintile |
| Investment Range | $410K – $3.1M | $786K – $2.8M |
| Franchise Fee | $50K | $35K |
| Royalty Rate | 4-6% of Gross Sales depending on restaurant type and development program (4% traditional/Groundbreaker, 5% Pacesetter, 6% military/Build-to-Suit) | 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 |
| Average Revenue (Item 19) | $2.1M | $1.9M |
| SBA Charge-Off Rate | 0.8% (200 loans) | N/A |
| Total Units | 7,397 | 550 |
| Unit Growth (YoY) | N/A | N/A |
| Year Began Franchising | 1971 | 2004 |
| FDD Year | 2026 | 2025 |
Investment Range
$410K – $3.1M
$786K – $2.8M
Franchise Fee
$50K
$35K
Royalty Rate
4-6% of Gross Sales depending on restaurant type and development program (4% traditional/Groundbreaker, 5% Pacesetter, 6% military/Build-to-Suit)
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
Average Revenue (Item 19)
$2.1M
$1.9M
SBA Charge-Off Rate
0.8% (200 loans)
N/A
Total Units
7,397
550
Unit Growth (YoY)
N/A
N/A
Year Began Franchising
1971
2004
FDD Year
2026
2025