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Freddy’s Franchisee M&M Custard Files Chapter 11, Says 31 Locations Will Stay Open

Chicago‑market losses combined with rising costs prompted the move toward a court‑supervised reorganization.

Overview

  • M&M Custard filed for Chapter 11 on Nov. 14 in the U.S. Bankruptcy Court for the District of Kansas.
  • Court records list about $5.2 million in assets against roughly $27.7 million in liabilities and more than 100 creditors.
  • The franchisee closed 11 Chicago‑area restaurants from March 2024 through October 2025 after labeling the market a toxic asset.
  • CEO Eric Cole says the company plans to keep its remaining 31 Freddy’s locations across six states operating during the case.
  • Filings seek permission to maintain banking arrangements and manage cash flow, and Freddy’s corporate called the case an isolated franchisee issue.