Freddy's Largest Franchisee Acquires 43 More Locations

Salina-based JRI Hospitality's acquisition of 43 Freddy's Frozen Custard & Steakburgers locations from HCI Hospitality solidifies its position as the brand's top franchisee. This move is part of a larger trend of consolidation within the franchise industry, where larger, well-capitalized operators are acquiring smaller franchisee groups to create more scalable and efficient operations. The fast-casual market is also seeing a push towards operational efficiency and technology integration to manage rising labor and food costs. The deal grows JRI Hospitality's holdings to over 130 Freddy's restaurants across 18 states. HCI Hospitality, which was founded in 2002, had been a significant Freddy's franchisee for over a decade, opening its first location in Junction City, Kansas, in July 2010. The 43 acquired restaurants are located in states including North Carolina, Texas, and Nebraska. As part of the acquisition, JRI Hospitality will also take over two of HCI's other restaurant concepts, JC's BBQ and Grill in Junction City, Kansas, and Powercat Sports Grill in Manhattan, Kansas. However, HCI's founder, Dave Dreiling, will retain ownership of Booth Creek Wagyu. To ensure a smooth transition, HCI's CEO, Cam Blakely, will join JRI as the President of Operations for their Freddy's division. This acquisition comes during a period of rapid growth for the Freddy's brand, which aims to have 800 operating restaurants by 2026. The chain has seen significant expansion in recent years, closing out 2025 with 22 new multi-unit development agreements to add 118 restaurants across the United States and Canada. This growth is occurring in a fast-casual sector that is increasingly competitive, with a focus on value and unique customer experiences.