A Freddy's Frozen Custard & Steakburgers franchisee filed for bankruptcy in Kansas after closing 11 stores in the Chicago area since 2024.

M&M Custard filed for Chapter 11 protections Nov. 14 and in an affidavit M&M Custard co-founder and CEO Eric Cole said that the franchisee will be successfully reorganized now that the underperforming stores have been removed from its holdings.

Court records show that the franchisee reported assets of $5.2 million to $27.65 million in liabilities. The company has over 100 creditors.

M&M Custard opened its first Freddy's franchise in 2012 in Jefferson City, Missouri and held 42 franchises before the Chicago closures. Cole confirmed in an email to USA TODAY Nov. 19 that the company will keep the remaining 31 locations it operates across six states

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