M&M Custard LLC, a franchisee of Freddy’s Frozen Custard & Steakburger, has filed for Chapter 11 bankruptcy protection. The company is based in Overland Park, Kansas. It reported $5 million in assets and $28 million in liabilities. M&M Custard operates several Freddy’s locations in Missouri, Kansas, Illinois, Indiana, Kentucky, and Tennessee. The bankruptcy filing lists 32 locations as of October 2025.
All affected restaurants are currently open and operating. M&M Custard is a franchisee, not the parent company, so the Freddy’s brand is not directly impacted. The company has asked the court to allow it to keep its banking arrangements and continue daily operations during the reorganization process.
The filing states that some locations may close to reduce costs and improve efficiency. Major unsecured creditors include Equity Bank, U.S. Food, and Budderfly LLC. Unsecured creditors do not have collateral for the money owed to them…