M&M Custard LLC, franchisee of Freddy's Frozen Custard & Steakburgers, files for bankruptcy as multiple frozen dessert chains face closures due to several challenges, what are the major factors leading to franchisees' shutdown? All you need to know

The love for frozen desserts among consumers is evergreen, and the craze remains throughout the year. But the year 2025 has not been one to remember for frozen dessert fast-food chains, as several major brands face closures due to franchise, seasonal, or bankruptcy issues.

Popular brands whose franchisees are shutting down this year include Texas Dairy Queen, some Rita’s, and Freddy’s franchisee locations, according to The Street. M&M Custard has filed for bankruptcy, seeking multiple closures. According to KCTV5, M&M Custard has filed for bankruptcy, but not the parent firm.

Dairy Queen, Culver’s, Freddy’s Frozen Custard & Steakburgers, and Rita’s Italian Ice are among the frozen dessert sector’s favorite chains.

M&M Custard LLC filed for bankruptcy

M&M Custard LLC, franchisee of Freddy's Frozen Custard & Steakburgers, voluntarily filed for Chapter 11 bankruptcy protection on November 14, 2025. The frozen dessert company reports $5 million in assets and nearly $28 million in liabilities in the filing.

Located in Overland Park, M&M Custard LLC owns franchise rights and operates dozens of Freddy’s Frozen Custard & Steakburger locations in Missouri, Kansas, Illinois, Indiana, Kentucky, and Tennessee. It is pertinent to mention that M&M Custard is one of the largest franchisees for Freddy’s Frozen Custard and Steakburgers but doesn’t own the Freddy’s brand itself.

Will restaurants close immediately?

The bankruptcy filing includes a total of 32 restaurant locations; however, all locations will continue to operate as they normally would for the time being. Three of those locations are in the Kansas City area.

Gardner, Kan.

632 E. Main St.

Martin City

13628 Washington St.

Kansas City, Mo.

Sedalia, Mo.

3171 W. Broadway Blvd.

What has M&M Custard LLC said in its filing?

As part of the filing, M&M Custard LLC said it plans to close a number of stores. The company has asked a bankruptcy court to allow it to continue to use its current banking system and accounts, according to KCTV5.

The court filing also requested a waiver on some bankruptcy rules that deal with how it handles money. If approved, the move will help the company share resources and transfer money between franchises to help the company stabilize. They also sought permissionto sort out and balance the current debts of the company.