Freddy’s Frozen Custard & Steakburgers, one of America’s fastest-growing fast-casual brands, has entered a new phase of expansion following its acquisition by investment funds affiliated with Rhône, a global private equity firm. The deal, announced Thursday, marks a strategic transition from previous ownership under Thompson Street Capital Partners, which had steered Freddy’s through a period of rapid growth and operational refinement since 2021.
From Regional Favorite to Billion-Dollar Brand
When Thompson Street Capital Partners acquired Freddy’s in 2021, the chain operated around 400 units. In just four years, that number has surged to over 550 locations across the U.S. and Canada, generating approximately $1 billion in systemwide sales. This momentum is expected to continue under Rhône’s stewardship, with Freddy’s planning to open 70 new franchised units in 2025, more than double the 30 units added in 2024.
International Expansion Begins
Freddy’s recently made its first move beyond U.S. borders, opening a location in Winnipeg, Canada, in June 2025. Through a partnership with North 49 Frozen Custard and Steakburgers, the brand aims to establish multiple outlets across Winnipeg in the coming years. This international push aligns with Rhône’s expertise in global brand expansion, having previously guided restaurant chains like Fogo de Chao, which it sold to Bain Capital in 2023 for $1.1 billion.
Operational Excellence and Innovation
Under Thompson Street’s ownership, Freddy’s focused not only on unit growth but also on enhancing operational efficiency and franchisee support. Initiatives included:
- Upgrading back-of-house systems
- Expanding digital consumer platforms
- Driving menu innovation
- Strengthening franchisee training and support
A key milestone was the opening of a training and innovation facility in Wichita, Kansas, designed to standardize management practices and serve as a testing ground for new products.
Leadership Continuity
Freddy’s leadership team will remain intact following the acquisition, ensuring continuity in strategy and culture. Chris Dull will continue as President and CEO, alongside Bill Valentes (CFO) and Brian Wise (COO). This stability is expected to help maintain Freddy’s strong franchise relationships and guest loyalty.
Strategic Vision from Rhône
Lucas Flynn, Managing Director at Rhône, emphasized the firm’s commitment to Freddy’s future:
“We look forward to bringing the Freddy’s offering to more customers around the world and supporting the company in this next chapter of growth.”
Rhône’s acquisition comes amid a wave of private equity activity in the restaurant sector, with recent deals including Levine Leichtman’s acquisition of Shipley Do-Nuts, Freeman Spogli’s purchase of Philz Coffee, and Roark’s majority stake in Dave’s Hot Chicken.
What’s Next for Freddy’s?
With a proven growth model, a loyal customer base, and a leadership team focused on innovation and franchisee success, Freddy’s is well-positioned to scale further—both domestically and internationally. Rhône’s global reach and operational expertise could unlock new markets and elevate Freddy’s from a regional powerhouse to a global contender in the fast-casual space.