How Much is a Culver’s Franchise?

Joshua Ramos
Source: Wisconsin State Journal

For many budding business owners, the franchise model presents an option with immense potential. Indeed, many of these options allow entrepreneurs to take advantage of brands that are well-known and established. Yet, with a plethora of costs expected to come into play, we explore just how much is a Culver’s franchise.

Culver’s is a restaurant located in the United States that is well-known for its take on ButterBurger and frozen custard. Indeed, the chain of restaurants is located throughout the Midwest and is widely beloved in the nearly 700 regions in which it operates.

So, with so much success, explore the costs associated with opening a location and some of the company’s history.

What is Culver’s?

Source: The Daily Meal

Also Read: Does Culver’s Take Apple Pay?

Culver’s was first opened in Wisconsin in 1984, when the Culver family, headed by George and Ruth, opened the first location in Sauk City. Thereafter, the company expanded through a franchise model, starting in 1987. Then, they opened their second location, with expansion following through the Midwest, in states like Wisconsin, Minnesota, and Illinois.

The food chain was well known by the late 1990s and reached as far as Texas. Moreover, it has become a staple of food offerings located throughout certain American states. Ultimately, its franchise model was well known due to the signature menu that the restaurant had employed.

Specifically, Culver’s was well known for its butter burgers, along with its frozen custard and cheese curds. With food offerings beloved in that section of the United States, Culver’s served its audience with specified options and with quality that many Americans came to adore.

With those specific offerings, the restaurant saw renewed success and expansion throughout the years. As the brand’s notoriety in that part of the country solidifies, let’s explore the costs of opening a Culver’s franchise.

Franchise Costs

Does Culver's Take Apple Pay
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For those interested in purchasing a Culver’s franchise, they will require a bevy of liquid assets and investment funds. Like any franchise agreement, there are costs that emerge within the franchise fee itself, as well as various costs required through the opening of the store.

Specifically, potential franchisees would need between $350,000 and $600,000 in liquid funds to begin their investments. Moreover, the total investment required initially would range from $2,043,000 to $4,652,000. Additionally, these funds would include the $55,000 franchise fee that Culver’s implements for its impending locations.

Culver’s also requires a royalty fee for those that are opening additional franchises. Specifically, this royalty fee would be 4% of the total gross revenue. Moreover, 2.5% of that would be used for the national advertising funds for all Culver’s locations throughout the country.

As a franchise, Culver’s has generated as much as $1.4 billion in annual sales. This franchise agreement would allow a location to emerge in what Culver defines as “available markets.” Specifically, this denotes the states in America that are open to new locations. Among these states are North Carolina, Kentucky, Colorado, Arizona, and many more.

Additionally, the agreement arrives with territorial protection for what is typically 3 miles. However, the company notes that this would change depending on more densely populated areas. The company also promises to guide franchisees through the purchase of things like equipment. Although these transactions would not go through Culver’s themselves, they note their collaboration with independent dealers and distributors to increase the likelihood of success.