Freddy’s NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence

Freddy’s Frozen Custard & Steakburgers was founded in 2002 in Wichita, Kansas, by brothers Bill and Randy Simon and their friend and business partner Scott Redler. The brand was named in honor of Bill and Randy’s father, Freddy Simon, and was built around quality, hospitality, cleanliness, and made-to-order food. Freddy’s

From its first Wichita restaurant, Freddy’s expanded through a largely franchise-led model, reaching its 500th location in 2023. Today, the brand has more than 580 locations across the United States and Canada, reflecting continued expansion of its fast-casual restaurant platform. Freddy’s

Freddy’s restaurants typically combine steakburgers, frozen custard, fries, and other fast-casual offerings with convenient freestanding restaurant formats and drive-thru service. Recent openings have generally featured approximately 2,800–3,000 SF buildings with drive-thru access. Freddy’s

Why Freddy’s Matters to NNN Investors

Freddy’s can be relevant to NNN investors because its growing restaurant network creates opportunities for single-tenant restaurant real estate, including freestanding properties with drive-thru access. The franchisor-led model also supports continued development through franchise operators, while the company maintains a select portfolio of company-owned restaurants. Rhône

For investors, the real estate characteristics of an individual Freddy’s location can be as important as the brand itself. High-visibility sites, convenient access, drive-thru functionality, strong surrounding demographics, and durable lease economics can influence the property’s investment profile.

Recent Freddy’s developments also demonstrate the importance of location fundamentals: new restaurants are positioned near major highways, retail centers, residential areas, and other traffic-generating destinations. Freddy’s

What Buyers and Sellers Should Evaluate

For investors evaluating a Freddy’s NNN property, a Freddy’s net lease, or a Freddy’s ground lease, the investment analysis should focus on the specific property and lease rather than the brand alone.

Common considerations include Freddy’s real estate, Freddy’s cap rate, Freddy’s lease term, Freddy’s tenant/guarantor, Freddy’s NNN properties, and Freddy’s 1031 exchange opportunities. Buyers should review remaining lease term, rent escalations, renewal options, guaranty structure, landlord responsibilities, and property condition.

Location fundamentals should also be evaluated, including visibility, ingress and egress, traffic patterns, surrounding demographics, nearby competition, drive-thru functionality, and alternative tenant demand.

For longer-term ownership, investors should additionally consider the property’s re-tenanting potential, market rent, capital requirements, lease rollover risk, and how the asset could perform under different exit strategies.