[Generated Title]: Freddy's Custard Bankruptcy: Proof No One's Safe From the Economic Apocalypse
So, another one bites the dust. M&M Custard, a major Freddy's Frozen Custard & Steakburgers franchisee, just filed for Chapter 11. Dairy Queen Rival Files for Bankruptcy Newsweek's trying to get a comment, offcourse, like that's gonna reveal some deep, dark secret. Please.
The Custard Collaspe
This isn't just about some regional custard chain, folks. This is a symptom. A big, frosty, custard-flavored symptom of a much larger disease: the death of the middle class. We've already seen chains like Dairy Queen shuttering locations (royalty disputes, they say...sure), and now this. What's next, McDonald's gonna start charging extra for ketchup? Oh wait...
Kempczinski, the McDonald's CEO, says they're seeing a "bifurcated consumer base." Translation: rich people are still buying Big Macs, poor people are eating ramen. And the middle? Vanishing faster than a Blizzard on a hot day.
Chipotle's CEO is singing the same tune – lower- to middle-income folks are pulling back. Unemployment, student loans, stagnant wages...it's a perfect storm of economic doom.
The Franchise Fiasco
M&M Custard racked up $27.7 million in liabilities against only $5.2 million in assets. Ouch. They're saying they'll still be able to pay out to unsecured creditors, which is... optimistic, to say the least.
They're planning on closing some stores to try and claw their way out of this mess. KVTV 5 reports that M&M Custard plans to close several stores as it attempts to emerge from the bankruptcy process. But let's be real: once you're in Chapter 11, it's usually a one-way trip to liquidation.
And it's not just Freddy's. Other Freddy's franchisee locations have closed this year. Dairy Queen has shuttered dozens of locations in 2025, including several in Texas amid a legal dispute between franchisees and the corporate headquarters over royalty payments and remodels. What is going on?
Here's the thing about franchises: they're supposed to be a safe bet. You buy into a proven system, follow the rules, and rake in the dough. But what happens when the system itself is broken? When people can't afford your $5 custard cone anymore?
The End of an Era?
Hooters CEO Neil Kiefer says it's a "tough time" for the restaurant industry. No kidding, Neil. You think maybe raising the price of wings to $20 a plate might have something to do with it? Just spitballing here.
Honestly, I'm starting to wonder if we're witnessing the end of an era. The era of cheap eats, of family-friendly restaurants, of the American Dream itself. Maybe I'm being dramatic. Maybe this is just a temporary blip. But when I see a Freddy's go down, it feels like a piece of my childhood is dying along with it.
Maybe I'm just hungry... Nah, it's more than that.
So, What's Really Going On?
This isn't just about bad management or a few struggling franchises. This is about a country where the gap between the haves and have-nots is widening at an unsustainable rate. And when people can't afford custard, you know things are seriously messed up.
