Freddy's Largest Franchisee Buys 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, consolidating its position in the fast-casual dining space.
The seller, HCI Hospitality, was one of Freddy's original franchise partners, opening its first location in Kansas in 2010. The company grew to operate units across several states, including Texas, Nebraska, and the Carolinas. This sale of 43 locations marks a significant strategic shift for the Manhattan, Kansas-based company. This acquisition is part of a larger trend of consolidation within successful franchise systems, where large, well-capitalized operators buy up smaller franchisees. This allows major players like JRI Hospitality to achieve greater scale, operational efficiency, and market dominance. The fast-casual restaurant segment has been a hotbed for this type of expansion. The deal further cements JRI's position as a powerhouse in the Freddy's system. Founded in 2011 by Jason Ingermanson, the Salina, Kansas-based company has grown rapidly through a series of acquisitions and new developments. Prior to this purchase, JRI already operated over 90 Freddy's locations in 15 states. Wichita-based Freddy's Frozen Custard & Steakburgers has been on a significant growth trajectory. Founded in 2002, the brand now has over 560 locations across 37 states as of late 2025. The company has seen rapid expansion, opening its 400th location in 2020 and its 500th in 2023. The fast-casual market, valued at over $144 billion in 2024, continues to expand, driven by consumer demand for higher quality food combined with quick service. This environment has fueled the growth of brands like Freddy's, which are projected to see continued expansion. This growth has not gone unnoticed by investors. In March 2021, Freddy's was acquired by private equity firm Thompson Street Capital Partners. More recently, in September 2025, it was acquired by another private equity firm, Rhône, signaling strong investor confidence in the brand's future performance and expansion strategy.
