FAQs About Culver's Franchising Opportunities | Culver's (2024)

When you’re considering a franchise opportunity with Culver’s, it’s only natural to wonder who brings what to the table. It’s our pleasure to provide you with the information you need.

1. Where are there franchising opportunities?

US Map of Available and Future Markets for Development. See below for detailed list of states and counties. WY WI WV WA VA VT UT TX TN SD SC RI PA OR OK OH ND NC NY NM NJ NH NV NE MT MO MS MN MI MA MD ME LA KY KS IA IN IL ID GA FL DE CT CO CA AR AZ AL

There are opportunities throughout our 26-state development market shown above.

2. What is the initial franchise fee?

Each new franchisee currently pays an individual franchise fee of $55,000 to acquire a Culver's franchise for the basic 15-year term of the franchise agreement. If you qualify, you may renew for an additional 10 years for an individual franchise fee of $30,000.

3. What is the current royalty fee?

Currently, it’s 4 percent of gross sales.

4. How much cash do I need?

Together, you and any potential investors will need a minimum of $500,000 in liquid assets to qualify for ownership of a Culver’s franchise. If you prefer to own the real estate, building and equipment, you will need $750,000 in liquid assets.

5. Am I given territorial protection?

Yes, typically 3 miles, but will be less in densely populated areas.

6. Do I have to buy my equipment from Culver's?

Although you will not purchase equipment directly from us, we’ll literally sit down with you and guide you through your ordering process. Proper equipment is critical to operational success. All necessary equipment will be purchased through our approved independent dealers and distributors based on specifications we provide.

7. Do I have to work in the restaurant?

Yes, absolutely. Culver’s expects nothing less than full-time, hands-on engagement from our owner-operators. As an owner-operator, you’ll work in the restaurant with your team to ensure excellence in execution because that is key to delivering the hometown hospitality and delicious food Culver’s is famous for. An owner-operator must maintain at least 50 percent ownership in the business, or at least 25 percent in the business and real estate, and be involved full-time in day-to-day operations.

8. Who is responsible for advertising?

Building awareness of Culver's and its reputation is an essential ongoing effort that benefits everyone. Currently, new franchisees contribute 2.5 percent. Franchisees are also required to spend at least 1 percent of their gross sales during each calendar year on advertising and promotional activities in their local geographic area.

9. Do I receive training from Culver's?

Yes. All owner-operators complete an intense franchisee development program, covering every position in the restaurant as well as how to open your restaurant. The cost of this training is already included in the initial franchise fee. Franchisees pay their own costs for transportation, lodging and meals. All training takes place in Wisconsin in one of our company-owned restaurants and at Culver's ButterBurger® University in Prairie du Sac, WI.

10. Do I receive assistance in opening my Culver's restaurant?

Yes. In addition to your training program, a Culver’s opening team will travel to your restaurant and work with you for one week prior to your restaurant opening as well as up to two weeks after your restaurant is open. As a new owner-operator, you will receive unwavering assistance from Culver's franchise support team to help ensure opening your restaurant is as seamless as possible, and that every guest leaves with a smile.

11. How soon can I open my Culver’s once I have successfully completed training?

Depending on the time it takes to hire a crew, we estimate that there may be as little as 4 but up to 5 months before you open your restaurant.

12. How much money can I make?

Unfortunately, federal and state laws prevent us from suggesting how much money you can earn from operating a Culver's restaurant. The amount of money you may make will depend on many factors, including the location of your restaurant, traffic flow, local marketing and advertising, the cost of your investment and other factors.

How well you manage your restaurant, control variable costs and execute your operations will correlate with how much money you can make.

We do publish a Financial Performance Representation in our Franchise Disclosure Document (FDD). This Financial Performance Representation contains certain historical gross sales information for existing Culver's restaurants as well as historical gross sales and certain cost information for a limited number of Culver's or affiliate-owned restaurants. Upon receiving our FDD, please review it for complete information regarding this Financial Performance Representation.

13. What is the Culver's Franchise Mentoring Program?

Culver’s Franchise Mentoring Program offers an excellent opportunity for top performing general managers in our restaurants to take the next step and become a Culver’s owner-operator. To date, more than 200 Culver’s franchise owner-operators have taken advantage of the program to reach their goals of business ownership. Many are now multi-unit owners.

14. How do I get started?

Complete and submit the online Franchise Application. Upon receipt, a Culver’s Franchise Development Representative will contact you to discuss your situation and schedule a personal meeting as appropriate.

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FAQs About Culver's Franchising Opportunities | Culver's (2024)

FAQs

What is Culver's franchise fee? ›

That includes a $55,000 franchise fee. In addition to the upfront investment, franchisees must pay a royalty of 4.0% of gross revenue and contribute 2.5% of gross revenue toward the system's national advertising fund. Across the entire franchise system, Culver's generates some $1.4 billion in annual sales.

Are Culvers franchises profitable? ›

Fast Growth: The chain store has experienced rapid expansion in recent years. Having excellent sales and revenue as well as restaurants in most of the states shows how popular the brand is becoming. Therefore, new franchisees can be assured of a brand with a lot of potential for growth and profitability.

What is the net worth requirement for Culver's? ›

4. How much cash do I need? Together, you and any potential investors will need a minimum of $500,000 in liquid assets to qualify for ownership of a Culver's franchise. If you prefer to own the real estate, building and equipment, you will need $750,000 in liquid assets.

How much does a Culver's owner make a year? ›

The estimated total pay range for a Owner Operator at Culver's is $56K–$90K per year, which includes base salary and additional pay. The average Owner Operator base salary at Culver's is $71K per year. The average additional pay is $0 per year, which could include cash bonus, stock, commission, profit sharing or tips.

Do franchises pay a monthly fee? ›

Royalty Fee

The franchisor uses the royalty fees to support its existing franchisees and maintain and grow the franchise system. The royalty fee is usually paid weekly or monthly, and is most commonly calculated as a percentage of gross sales, typically ranging between 5 to 9 percent.

Who pays the franchise fee? ›

By joining a franchise, an investor or franchisee is able to run a business under the umbrella of the franchise. The franchisee must pay a franchise fee, which may become costly. In the United States, it may amount to thousands of dollars.

Who owns the most Culver's franchises? ›

“And keep reminding them, and people will get there. And they will be so happy when they do.” Chad Stevenson, left, and Jeff Liegel of S&L Companies are the largest Culver's franchisees with nearly 100 restaurants in five states and 50 owner-operators.

Who owns Culver's restaurants? ›

The Culver family retains majority ownership.

What is competitive pay for Culver's team member? ›

Culver's crew member salaries range between $18,000 to $32,000 per year. Culver's crew members earn 16% less than the national average salary for crew members of $28,946. Location impacts how much a crew member at Culver's can expect to make.

What is the highest paying food franchise? ›

Top 5 Highest-Grossing U.S. Fast-Food Chains
  • 1 – Chick-fil-A — $6.7 million. Chick-fil-A's steady but rapid growth is unrivaled. ...
  • 2 – Raising Cane's — $5.4 million. ...
  • 3 – Shake Shack — $3.8 million. ...
  • 4 – Whataburger — $3.7 million. ...
  • 5 – McDonald's — $3.6 million.
Aug 18, 2023

What is the average revenue for a Culver's franchise? ›

~ Total
Total Number of Franchised RestaurantsAverage SalesMedian Sales
716$2,615,278$2,585,293
Feb 25, 2022

What is the highest paying franchise? ›

Franchise models that offer the highest return on investment are those that have a proven track record of success, a strong brand name, and a loyal customer base. According to Franchise Direct, some of the most profitable franchises models include McDonald's, 7-Eleven, and Dunkin' Donuts.

What is the entry franchise fee? ›

The initial franchise fee is a one-time fee you pay to a franchisor to enter the franchise system. It gives you access to the franchisor's proprietary business systems and the license to own and operate the business.

What percentage is the franchise fee? ›

A royalty fee is an ongoing payment that is collected by the franchisor on a monthly or weekly basis. The idea behind franchise royalty fees is that franchisors do well when franchisees do well. The average royalty fee is between 4% to 12%.

What are franchise fee prices? ›

Initial Franchise Fee

The price to use the brand's name and collateral can range from a few thousand dollars to tens of thousands, with most falling between $20,000 and $50,000. Many franchisors offer discounts on their fee for military veterans.

Is a franchise fee one-time? ›

This is a one-time payment that gives you a license to own and operate your franchise business for an agreed upon number of years. The only time you'll be required to pay this fee again, is at the end of your initial term if you decide to renew or extend the terms of your franchise agreement.

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