On 14 November 2025, M&M Custard LLC, a key franchisee of Freddy's Frozen Custard & Steakburgers — one of the closest rivals to Dairy Queen — filed for Chapter 11 bankruptcy protection, sending ripples through the fast-food sector. With debts topping £18 million ($27.7 million), the move has reignited debate around franchisee failures, ice cream chain instability, and the growing necessity of business reorganisation in a turbulent economy.
This high-profile filing shines a spotlight on the surge of frozen custard and dessert-chain bankruptcies in 2025. By seeking Chapter 11 protection, the company can continue operating while reducing liabilities. With assets of only £3.4 million ($5.2 million) against substantial claims, the case underscores how restructuring has become a critical lifeline for distressed fast-food operators.
