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Dairy Queen's bankruptcy restructuring (Chapter 11) triggers the impact after the bankruptcy of major competitors.
M&M Custard is one of the main franchisees of Freddy's Frozen Custard, which has filed for bankruptcy protection (Chapter 11), with assets of $5.2 million and liabilities of $27.7 million, and between 100 to 199 creditors, including Equity Bank (owed $8.5 million). This bankruptcy filing affects 31 stores across six states but will not impact the operations of Freddy's headquarters. Meanwhile, due to poor management by franchisees, Dairy Queen closed 40 stores in Texas at the beginning of 2025. Industry leaders, including the CEOs of McDonald's and Chipotle, warn that ongoing consumer pressure, especially among low-income groups, will continue to pose challenges for the fast food industry until 2026.