Freddy's Largest Franchisee Acquires 43 More Locations
JRI Hospitality, already the largest franchisee of Freddy's Frozen Custard & Steakburgers, has acquired 43 more locations from HCI Hospitality. The deal expands JRI's portfolio to over 130 restaurants across 18 states, significantly consolidating its position within the fast-casual chain.
This acquisition solidifies a long-standing relationship between two major players in the Freddy's system. Both JRI Hospitality, founded by Jason Ingermanson, and HCI Hospitality, founded by Dave Dreiling, are Kansas-based companies that have been instrumental in the national growth of the Freddy's brand. HCI opened its first Freddy's in Junction City, Kansas, in 2010. To ensure a smooth transition, HCI Hospitality's CEO, Cam Blakely, will join JRI as the President of Operations for the Freddy's division. This move retains key leadership with experience overseeing the acquired locations. HCI's founder, Dave Dreiling, will not be departing the hospitality industry entirely; he will continue to own and operate Booth Creek Wagyu, a premium beef company. The deal includes not only the 43 Freddy's locations but also two other HCI-owned restaurants in Kansas: JC's BBQ and Grill in Junction City and Powercat Sports Grill in Manhattan. This indicates a broader strategic acquisition by JRI Hospitality to expand its portfolio beyond its core Freddy's holdings. This franchisee consolidation occurs as the Freddy's brand itself experiences significant growth. The chain, which started in Wichita, Kansas, in 2002, now has over 550 locations in the U.S. and Canada and generates more than $1 billion in systemwide sales. The entire Freddy's enterprise was recently acquired by the global private equity firm Rhône, which has experience expanding consumer brands internationally. This suggests that large-scale franchisees like JRI Hospitality will be key partners in the brand's next phase of domestic and global expansion.
