Freddy's Largest Franchisee Acquires 43 More Locations
JRI Hospitality, already the largest franchisee of Freddy's Frozen Custard & Steakburgers, has added 43 more restaurants by acquiring HCI Hospitality. The deal expands JRI's portfolio to over 130 Freddy's locations across 18 states, consolidating its position in the fast-casual dining sector.
The acquisition of 43 Freddy's locations from HCI Hospitality solidifies JRI Hospitality's presence in the Midwest and Southeast. HCI, the seller, operated restaurants across several states, including Kansas, Nebraska, Iowa, Texas, and the Carolinas. This deal pushes JRI's portfolio to more than 130 locations in 18 states. Salina, Kansas-based JRI Hospitality, led by founder and CEO Jason Ingermanson, has a history of aggressive growth through acquisition. Prior to this major purchase, the company expanded its footprint by acquiring smaller groups of Freddy's restaurants, including four in Pennsylvania and five in Nevada and California. The transaction involves two major players in the Freddy's franchise system. HCI Hospitality, based in Manhattan, Kansas, was founded in 2002 and grew to operate more than 40 Freddy's locations before the sale. This franchisee-to-franchisee deal happens against a backdrop of significant growth for the Freddy's brand itself. The Wichita-founded fast-casual chain has expanded to over 515 locations in the U.S. as of early 2024 and was acquired by private equity firm Thompson Street Capital Partners in 2021.
