Culvers
Culver's offers quick-service restaurants with burgers, sandwiches, salads, and frozen custard desserts. Known for its hand-dipped custard, the brand operates in the fast-food sector.
About Culvers
Culver Franchising System, LLC, doing business as Culver's, is an American regional fast-casual restaurant chain. The company was founded in 1984 by George, Ruth, Craig, and Lea Culver. The first location opened in Sauk City, Wisconsin, on July 18, 1984, under the name "Culver's Frozen Custard and ButterBurgers". The privately held company is headquartered in Prairie du Sac, Wisconsin. The chain operates primarily in the Midwestern United States, and has a total of 1,000 restaurants in 26 states as of April 2025.
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Culvers franchise FAQ
How much does it cost to open one — the total initial investment?
The total investment necessary to begin operation of a Culver's® Restaurant ranges from $2,642,500 to $8,573,000. This includes a $30,000 to $55,000 initial franchise fee that must be paid to the company [p.1].
What is the initial franchise fee?
The initial franchise fee generally is $55,000. However, it can be reduced to $45,000 for certain existing franchisees opening an additional restaurant or to $30,000 under the Mentoring Program, with a possible further reduction of $10,000 if you qualify for the Veteran's Discount [p.17].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4.00% of sales, which goes to CFS as a service royalty [p.39]. Additionally, there's an advertising fee; if a local or regional cooperative advertising program is established, you would contribute up to 4% of gross sales for the restaurant towards such programs [p.93].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement lasts typically 15 years, commencing on the earlier of the date when the restaurant opens or twelve months following the date the franchise agreement was signed [p.62]. Renewal agreements are for 10 years [p.78].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires approval from the franchisor for most transfers [p.5]. You must pay a transfer fee of $10,000 plus legal fees if there is no first refusal by the franchisor, and other conditions apply based on the transferee's relationship to you [p.107].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.198]. Additionally, the franchisor may terminate the franchise prior to expiration for good cause, which includes the failure of the franchisee to comply with lawful provisions of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity to cure, though this opportunity cannot exceed 30 days [p.5(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
To meet the standard financial capability criteria, you must provide financial statements and other information regarding your development and operation of the proposed restaurant, including pro forma statements and investment plans. At a minimum, you must meet Culver's® current liquid asset requirements for new franchisees [p.132]. This isn't specified in the exact amount or net worth required.
Do I get an exclusive or protected territory?
You will not receive an exclusive territory [p.31]. However, you are granted certain protected rights to develop more than one Restaurant within a designated geographic area (Designated Area) as described in the Development Agreement [p.30]. This Designated Area may be limited if other franchises or company-owned restaurants are established outside of it [p.30].
What training and ongoing support does the franchisor provide?
The franchisor provides several forms of training and ongoing support [p.96]. They will inspect the restaurant as needed, offer advisory services upon request, make changes and improvements to the business system available, provide access to supplements and modifications to the manual, and develop national advertising materials. Additionally, they may agree to provide management assistance for additional compensation [p.96]. For new franchisees, there is a detailed training cost estimate provided [p.17], which includes training for managers, key employees, and crew members.
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor shares limited financial performance information as specified in Item 19 of the disclosure document [p.36]. This includes sales data from both franchised and company-owned Culver's® Restaurants for a specific period, but does not include typical locations only. The franchisor also does not make any financial performance representations or authorize its employees to do so [p.45], with exceptions noted for existing outlet records provided upon purchase [p.36].
What am I restricted to selling, and where must I buy supplies?
You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might result in more expensive prices than if you bought similar items on your own [p.3]. The franchise agreement may also restrict you from operating a similar business during the term of the franchise and controls aspects such as location, access to customers, what you sell, marketing methods, and hours of operation [p.3].