Consumers have a special place in their hearts for frozen dessert fast-food chains, and it’s always disappointing when a beloved local shop closes down. Among the top favorites in this sector are Dairy Queen, Culver’s, Freddy’s Frozen Custard & Steakburgers, and Rita’s Italian Ice.
In the first half of 2025, fans of about 30 Dairy Queens in Texas were left upset when the parent company, American Dairy Queen, decided to pull the franchises from franchisee Project Lonestar. This action was taken after the franchisee failed to remodel its locations, leading to the closure of these beloved spots as they could no longer order supplies from the parent corporation.
Similarly, Rita’s Italian Ice enthusiasts will have to find a temporary substitute for their favorite frozen treat as some Rita’s locations across the country close their doors in October each year for about four months. Rita’s Italian Ice & Frozen Custard in Horseheads, N.Y., recently announced the end of its “2025 season” on Oct. 13, urging customers to stock up on their favorite treats before the closure.
Another blow to the frozen treat industry came with the news of Freddy’s Frozen Custard & Steakburgers franchisee M&M Custard LLC filing for Chapter 11 bankruptcy protection. This move was part of a plan to reorganize their businesses and restructure debts, listing assets at $5.2 million and liabilities at $27.7 million. The debtor’s largest unsecured creditors include Equity Bank, Budderfly LLC, and insiders Eric H. Cole and Steven Nordstrom.
Freddy’s Wichita-based parent company and franchisor did not file for bankruptcy, but the franchisee’s filing indicated that several franchise locations might be closing down. The debtor currently operates 31 locations in six states, including Illinois, Indiana, Kansas, Kentucky, Missouri, and Tennessee.
Freddy’s, with 550 locations in the U.S. and Canada, recently underwent an ownership change when St. Louis-based private equity firm Thompson Street Capital Partners sold the company to investment funds affiliated with global private equity firm Rhône. This acquisition is seen as a pivotal moment for Freddy’s, with President and CEO Chris Dull expressing excitement about the new partnership unlocking greater opportunities for the franchise family.
As the frozen dessert landscape continues to evolve, it’s clear that even beloved chains face challenges that may lead to closures or restructurings. Fans of these establishments will have to adapt to changes in their favorite treat spots, but the love for frozen desserts remains unwavering.
