Culver’s
Financial Plan
Liquid capital
The amount you need to secure the necessary loans.
Total investment
Total Investment to launch the business, including initial fees ($65,000)
The Concept
Culver’s was founded in 1984 in Sauk City, Wisconsin, by Craig and Lea Culver and Craig’s parents, George and Ruth. The original restaurant combined two signature products that remain central to the brand: the ButterBurger and fresh frozen custard. The company subsequently developed a franchise model, with the first successful franchised restaurant opening in Baraboo, Wisconsin, in 1990.
Today, Culver’s has grown to more than 1,000 restaurants across 26 states, making it one of the larger regional burger franchises in the United States. Its positioning is differentiated from traditional value-oriented QSRs through its emphasis on fresh ingredients, cooked-to-order food, frozen custard and “hometown hospitality.” The franchise model strongly favors hands-on owner-operators: Culver’s explicitly says franchisees are expected to work full-time in the restaurant and maintain significant ownership.
Frequently Asked Questions
How much liquid capital do I need?
Culver’s requires a minimum of $500,000 in liquid assets for a prospective franchisee and participating investors. If the franchisee intends to own the real estate, building and equipment, the stated requirement rises to $750,000.
Does Culver’s require an owner-operator?
Yes. Culver’s is unusually explicit about hands-on ownership. The company expects the owner-operator to be involved full-time in day-to-day restaurant operations and requires the owner-operator to maintain at least 50% ownership of the business, or at least 25% ownership when the franchisee also owns the business’s real estate.
What does Culver’s charge in ongoing royalties?
The current royalty/service fee is 4% of gross sales. New franchisees also contribute 2.5% toward advertising, while Culver’s requires at least another 1% of gross sales to be spent on local advertising and promotional activity.
Does Culver’s provide training and opening support?
Yes. Owner-operators complete an intensive development program covering restaurant positions and opening procedures. Culver’s also sends an opening team to the restaurant for one week before opening and up to two weeks afterward.
Can I determine expected revenue before investing?
Culver’s does not promise earnings. However, the company states that its FDD contains a Financial Performance Representation with historical gross-sales information for existing restaurants. A prospective franchisee should therefore obtain and carefully review the current FDD rather than relying on external revenue estimates.
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