The franchise owner of Freddy’s Frozen Custard & Steakburgers has filed for Chapter 11 bankruptcy. M&M Custard LLC made its decision following rising debt levels. However, the Kansas-based franchisee plans to keep its locations open during the process.
M&M Custard LLC Files for Bankruptcy
According to Pacer, M&M Custard LLC voluntarily submitted a Chapter 11 filing in the U.S. Bankruptcy Court for the District of Kansas. The case was filed by the restaurant chain franchisee on Friday, November 14.
As the franchise owner of Freddy’s Frozen Custard and Steakburgers, the Kansas-based business has been serving patrons for nearly 15 years. M&M Custard LLC’s first-ever outlet opened in Jefferson City, Missouri, in 2012. Today, the franchisee operates roughly 33 locations across six states.
M&M Custard LLC plans to maintain operations as the bankruptcy process unfolds in the coming days.
Details of the Bankruptcy Proceedings
According to court filings, M&M Custard LLC lists assets between $0 and $50,000. The liabilities of the restaurant chain franchisee are also in the same range. The filing lists up to 49 unsecured creditors.
Here is a short summary of the bankruptcy filing.
- Case Number: 2:25-bk-21650
- Filing Date: November 14, 2025
- Chapter: 11
- Status: Active, Voluntary Petition
M&M Custard LLC initiated the process through a voluntary Chapter 11 filing at a payment of $1,738. Attorney Colin N. Gotham from Evans & Mullinix, P.A., represents the franchisee.
The Kansas bankruptcy court asked the franchise owner to submit its Chapter 11 Plan and Disclosure Statement by May 13, 2026. The deadline for M&M Custard LLC’s request for an electronic filing was November 21.
Following this, the restaurant chain franchisee made the electronic filing on the same day in the Kansas court.
Several creditors of M&M Custard LLC filed a Notice of Appearance and Request for Notice on November 14. The Pacer data highlights that Gabriel J. Greenbaum, on behalf of Creditor Equity Bank, requested to receive all notices and filings relating to the case.
The Kansas-based franchisee submitted a Motion for Joint Administration of Lead Case M&M Custard, LLC, and member cases related to more than 30 affiliated companies. Affiliated entities include M & M Jefferson City Restaurant, LLC, M & M Columbia Restaurant, LLC, M & M Cave Springs, LLC, and M & M Martin City, LLC.
The franchisee also applied to employ attorney Colin N. Gotham and Evans & Mullinix, P.A. The Kansas business submitted an affidavit to support the application as well.
The company then filed a Notice of Objection, which is scheduled to have a hearing on January 22, 2026. M&M Custard LLC then submitted a Certificate of Service, which was filed by attorney Colin N. Gotham. The objections were due by December 9, 2025.
M&M Custard LLC also filed a standard first-day motion seeking court approval to maintain utility services.
M&M Custard, LLC filed a motion asking the bankruptcy court to issue an order dealing with the company’s utility services (electricity, gas, water, internet, etc.) after it filed for Chapter 11. This type of motion is standard in first-day filings.
Attorney Colin N. Gotham filed a Notice of Objection, whose hearing deadline is January 22, 2026, at 1:30 p.m. The filing includes a Certificate of Service dated November 14, 2025. Any objections can be raised until December 9.
An Exhibit A and a Motion to Reject Lease or Executory Contract, along with a Certificate of Service, were filed by attorney Colin N. Gotham on November 14.
A Notice of Objection scheduled for January 22, 2026, and a Certificate of Service dated November 14, 2025, were again submitted by the attorney. The restaurant chain franchisee can raise objections by December 9, 2025.
Further details of the filing show that M&M Custard, LLC submitted a Motion for Interim and Final Orders to approve the use of cash from its bank accounts and cash management systems. Another Certificate of Service was filed here. The franchise owner also requested that the Kansas court allow payments of some of its pre-petition taxes.
Multiple other motions related to M&M Custard, LLC’s money-related matters, including employee wages, pay claims of vendors, insurance programs, and more, were submitted on November 14.
A document was then filed by Colin N. Gotham in support of the joint administration of the lead case and cases of 30-plus affiliated companies. M&M Custard, LLC filed a Motion to Expedite Hearing along with a Certificate of Service.
As the franchise owner of Freddy’s Frozen Custard and Steakburgers prepares for joint administration of its more than 30 affiliate companies, the latest filing could streamline the restructuring process.
