About Culver's Restaurant Franchise
Culver's is a beloved quick service restaurant franchise known for its signature ButterBurgers, fresh frozen custard, and a diverse menu of sandwiches, salads, and dinner options.
The brand has built a loyal following with its commitment to quality ingredients and friendly, welcoming service in a casual dining atmosphere.
The franchise fee is $55,000, and the company has been franchising since 1990 under Culver Franchising System Deluxe, LLC.
Culver's Restaurant Franchise Cost & Fees
Minimum Investment
$2.6M
Average Investment
$5.6M
Maximum Investment
$8.6M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $55,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.5% of Gross Sales | National brand fund |
| Total Investment Range | $2,642,500 – $8,573,000 | Includes build-out, inventory, working capital |
The investment range of $2.6M–$8.6M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (2.5% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $55,000 |
| Land | $240,000 | $2,700,000 |
| Site Work | $95,000 | $1,590,000 |
| Building | $1,507,000 | $2,946,000 |
| Travel, Living and Expenses during Training | $20,000 | $80,000 |
| Initial Inventory | $50,000 | $65,000 |
| Furniture, Fixtures Equipment and Supplies, (Excluding Sign Package and POS Cash Register System) | $467,000 | $590,000 |
| Sign Package | $120,000 | $336,000 |
| POS System | $38,500 | $51,000 |
| Miscellaneous Expenses | $20,000 | $40,000 |
| Additional Funds (working capital) - for 3 months | $65,000 | $120,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus our attorneys’ fees ($5,000 plus our attorneys’ fees if the buyer is an existing franchisee) |
| Renewal Fee | $30,000 |
| Technology Fee | Estimated $600 - $1,000 per month (currently no fee, but reserved right to charge) |
| Audit Fee | Cost of inspection or audit (if records indicate understatements in excess of 2%) |
| Cooperative Advertising | Up to 4% of your Gross Sales |
| Additional Training | $1,000 per person |
| Additional Assistance | $500 per week |
| Site Review Fee | $500 per site after four site reviews |
| Custom Design Fee | Up to $5,000 |
| Extraordinary Building Assistance Fee | Up to $50,000 |
| Building Conversion Fee | Up to $10,000 |
| Excessive Site Location Design Fee | $500 per site location after four site locations |
| Insurance | Will vary under certain circumstances |
| Interest | Lesser of 1.5% per month or highest contract rate of interest allowed by law |
| Management Fee | To be determined under circumstances |
| Gift Card Fees | Currently $.22 cents per redeemed transaction (may increase to $.35 cents) |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Supplier Payments | Will vary under circumstances |
| Testing | Cost of testing |
| Relocation Expenses | Costs of relocation |
| Development Agreement Schedule Extension Fee | $20,000 per Restaurant for an extension of up to 6 months |
| Development Agreement Termination Fee | $50,000 for each Restaurant to be developed for which a Franchise Agreement has not been signed or initial franchise fee paid |
| Territory Agreement Reservation Extension Fee | $20,000 for an extension of up to 6 months |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Franchisee Development Program: 16 weeks; Manager in Training Program: 7 weeks |
| Classroom Training | Franchisee Development Program: 120 hours; New Manager Training: 14 hours |
| On-the-Job Training | Franchisee Development Program: 550 hours; New Manager Training: 268 hours |
| Training Location | Prairie du Sac, Wisconsin, or at a Restaurant we designate (for Franchisee Development Program); At a Restaurant we designate (for New Manager Training) |
| Additional Training | We may periodically make available additional mandatory and optional training courses or programs. We may require the Operator to attend such training and may charge a fee. Franchisees are responsible for travel, food, lodging, and similar costs. For renewal, the Operator may be required to attend a reconnection or new training course(s) or program(s). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | 3 mile radius |
| Description | Under the Franchise Agreement, you may only operate your Restaurant at a specific location. You will typically receive a "Designated Territory" that will be a 3-mile radius around the location of your Restaurant. This area may be smaller if it contains a physical or perceived barrier, a high population density, or if the proposed location is not a free-standing site, lacks a drive-thru, or does not have its own dedicated parking lot, or if it contains another existing or potential trade area. Within this Designated Territory, we will not operate or grant franchises to others to operate a full-service Culver’s® Restaurant. However, your Designated Territory may overlap with another franchisee's designated territory. We reserve the right to distribute products and services through alternative channels and establish company-owned or franchised Culver’s® Restaurants outside your Designated Territory, or at "Non-Traditional Locations" (e.g., malls, universities, airports) within or outside your Designated Territory. You do not need to achieve a certain sales volume or market penetration to retain the Designated Territory. You may advertise and serve customers outside your territory, and other franchisees/CFS may advertise and serve customers within your territory without compensation to you. Off-premise sales within the Designated Territory require written consent. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | 10 years |
| Renewal Fee | $30,000 |
| Renewal Conditions | Provide 12-30 months advance written notice, be in substantial and timely compliance with the Franchise Agreement (including financial obligations and operating standards), meet then-current qualification and training requirements, attend a refresher course (if deemed necessary), remodel/modernize the Restaurant premises to current appearance standards, pay the renewal fee, sign a new standard franchise agreement (which may have materially different terms), secure a lease extension (if applicable), and execute a general release of claims. |
| Transfer Fee | $10,000 plus our attorneys’ fees ($5,000 plus our attorneys’ fees if the buyer is an existing franchisee) |
| Transfer Conditions | All accrued monetary obligations to us must be satisfied, and you must not be in default. You must execute a written agreement to observe post-term obligations. The transferee must execute our then-current standard franchise agreement for the balance of the existing term. The transferee must be approved by us, meet managerial, financial, and business standards, have a good business reputation and credit rating, and complete our training program. The transferee must not own/operate a competitive business. You and all guarantors must execute a general release and indemnification. Modernization requirements of Section 10(G) must be complied with. |
| Termination for Cause | We may terminate for various defaults, including failure to secure an approved site within 12 months or open within 24 months, violation of any material provision, conviction of a felony or crime of moral turpitude, failure to conform to Business System requirements, failure to timely pay fees, insolvency/bankruptcy, abandonment of business, acts impairing goodwill, or lease expiration/termination. Most curable defaults have a 30-day cure period. Immediate termination (no cure period) applies for repeated failures, non-curable breaches, willful deception of customers, certain felonies/crimes, abandonment, acts impairing goodwill, or intentional falsification of data (e.g., Gross Sales understated by >4%). |
| Non-Compete Period | 1 year |
| Non-Compete Details | During the term of the agreement, the Operator and all guarantors cannot be involved in any competing restaurant business (featuring frozen custard, hamburgers, or other Culver's products) without our prior written consent, except for Culver's Restaurants. For one year after termination or expiration, the Operator and all guarantors cannot be involved in any competing restaurant business within 6 miles of the former Restaurant or any other Culver's Restaurant. For Development Agreements, the post-term non-compete applies within the Designated Area, within a 15-mile radius of its outside boundary, or within 6 miles of any other Culver's Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If you are an individual, you must be the present and engaged full-time on-site owner-operator and personally manage the Restaurant, unless prior consent to delegate is received. If a corporate entity or partnership, one individual (the "Operator") must retain at least 50% of the equity and voting interest and personally manage the Restaurant full-time on-site. Alternatively, the Operator may retain at least 25% equity and voting interest if they also have at least 25% ownership in the building and real estate, and personally manage the Restaurant full-time on-site. The Operator and a minimum of 6 managers must complete the training program and sanitation certification. For multiple restaurants under a Development Agreement, the Development Operator must oversee development and day-to-day operations and meet ownership/equity requirements. |
| Required Suppliers | Yes, for certain fixtures, equipment, supplies, décor, and proprietary food products (Special Products). Approved distributors include Gordon Food Service, Inc. (GFS), Shamrock Foods Company, Cash-Wa Distributing Co. of Kearney, Inc., and The Boelter Companies, Inc. Must purchase Coke® and Dr Pepper® soft drink syrup products from authorized distributors. Other items include furniture, fixtures, equipment, uniforms, signage, menu boards, gift cards, custard machines, point of sale and backoffice systems (POS System), managed security service provider (MSSP), and advertising point-of-purchase (POP) kits. |
| Supply Restrictions | Franchisees must obtain all fixtures, equipment, supplies, décor, and other materials from us or from designated/approved suppliers. Products must meet our standards and specifications. If a franchisee wishes to use an unapproved supplier, they must notify us in writing, identify the supplier and items, and obtain our approval. The supplier must agree to non-disclosure, comply with specifications, demonstrate financial viability, produce samples for approval, and remain in good standing. We may charge for product testing costs. Approximately 90% to 95% of initial and ongoing expenditures are subject to sourcing restrictions. |
| Franchisor Revenue from Suppliers | Yes, we reserve the right to receive rebates or other payments and consideration from suppliers, based on sales to franchisees and company-owned Restaurants, and from other service providers. These payments have ranged or may range from less than 1% up to 20% or more of the amount of those purchases by franchisees. For the fiscal year ending December 31, 2024, we recognized rebate revenues of $30,583,356, which was 10.2% of our total revenues ($298,597,202). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not receive payments or other consideration for the placing of financing or guarantee any note, lease or other obligation you may enter into or incur. |
Culver's Restaurant Franchise Earnings — Item 19
Average Revenue
$3.8M
Median Revenue
$3.7M
Revenue Range
$1.2M – $8.7M
Sample Size
935 units
Past financial performance does not guarantee future results. Individual results will vary.
Culver's Restaurant Litigation & Risk Flags
Clean Litigation RecordCulver's Restaurant has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Culver's Restaurant System Growth
Total Units
997
Franchised
990
Company-Owned
7
Culver's Restaurant currently operates 990 franchised locations and 7 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 56 | 0 | 886 |
| 2023 | 52 | 1 | 937 |
| 2024 | 53 | 0 | 990 |
Transfers: 23 | Closures: 0
State Registrations
Registered in 26 states: AL, AZ, AR, CO, FL, GA, ID, IL, IN, IA, KS, KY, MI, MN, MO, NE, NC, ND, OH, SC, SD, TN, TX, UT, WI, WY
Franchisor Financials (Item 21)
Revenue
$298.6M
Net Income
$104.2M
Total Assets
$131.3M
Audited by Independent Auditors' Report for year ending December 31.
Culver's Restaurant Franchise — FAQ
The total investment to open a Culver's Restaurant franchise ranges from $2,642,500 to $8,573,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $55,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Culver's Restaurant charges a royalty fee of 4% of Gross Sales of gross sales, plus a 2.5% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Culver's Restaurant Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Culver's Restaurant to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Culver's Restaurant franchise owners report average revenue of $3.8M and median revenue of $3.7M. This is based on a sample of 935 units. Past performance does not guarantee future results.
Culver's Restaurant has been franchising since 1990. The FDD shows an investment range of $2,642,500-$8,573,000, a 4% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $55,000 and the total investment ranges from $2,642,500 to $8,573,000 depending on location size and market. A minimum of $528,500 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Culver's Restaurant and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Culver's Restaurant or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com