Risk Score
Pending analysis
Investment Range
$2,642,500 - $8,573,000
Franchise Fee
$20,000
Min Cash Required
$528,500
Total US Locations
997
Business Summary
Culver's operates quick-service restaurants that offer a variety of menu items including burgers, sandwiches, salads, dinners, frozen custard desserts, and beverages. The restaurants provide options for drive-thru, carryout, and on-site consumption, focusing on a quick-service, casual dining experience.
Corporate History
Culver's roots trace back to 1984 when the first Culver's Restaurant opened in Sauk City, Wisconsin, under a predecessor company, Culver Enterprises, Inc. Culver Franchising System, LLC itself was incorporated in Wisconsin in 1987 as Culver Franchising System, Inc., later converting to an LLC in 2017. The brand began offering franchises for its restaurant concept in 1990. Over the years, various affiliated entities have owned and operated company restaurants, including GoCulv, CulvCo, and MidCul, which also assist in training new franchisees. The initial Sauk City restaurant was transferred to a relative in 1994, then reacquired by Culver Franchising System in 1996, eventually being transferred to affiliates.
Financial Overview
Investment Range
$2,642,500 - $8,573,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$55,000
Minimum Cash Required
$528,500
Royalty %
4%
Marketing %
2.5%
Equipment Costs (Low)
$625,500
Equipment Costs (High)
$977,000
Working Capital
$92,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Culver Franchising System, LLC demonstrates a strong financial position, as indicated by its unqualified audit opinions for 2024 and 2023. The company maintains substantial cash and cash equivalents, with $76 million in 2024 and $52 million in 2023, and consistently shows positive working capital, reaching $58 million in 2024 and $37 million in 2023. Culver's has also reported strong net income and positive cash flow from operating activities in recent years. While the company is obligated to distribute 80% of its free cash flow to its member annually, its strong financial performance ensures continued liquidity and profitability. There are no outstanding balances on its $10 million revolving line of credit, and no going concern issues were noted by the auditors.
Financing Details
Culver Franchising System, LLC does not offer any direct or indirect financing options to its franchisees. Franchisees are responsible for securing their own financing for the initial investment and ongoing operations. Culver's also does not receive payments or other consideration for placing financing, nor does it guarantee any notes, leases, or other obligations that a franchisee might incur.
Performance Metrics
Total US Locations
997
Franchised Units
990
Corporate Units
7
Avg Square Footage
4,185
Franchising Since
1990
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Culver Franchising System, LLC has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Culver Franchising System, LLC has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Culver's franchisees must provide written notice 12 to 30 months before their current term ends. They must be in full compliance with their franchise agreement, including all financial obligations, and meet Culver's current qualification and training requirements. This involves attending and successfully completing a refresher training course or program. Franchisees are also required to make reasonable capital expenditures to remodel, modernize, and redecorate their restaurant premises to reflect current brand standards, completing these upgrades at least 90 days before renewal. A renewal fee of $30,000 must be paid 30 days before the term expires, and franchisees must sign the then-current franchise agreement, which may have different terms. If leasing, they must secure a lease extension for the new term or an approved new location, and sign a general release of claims against Culver's.
Training & Support Program
Franchisor Assistance
Before a Culver's restaurant opens, Culver Franchising System, LLC provides various forms of assistance, including an initial training program for the owner/operator and managers, electronic access to its confidential Operations Manual, and a review of site selection criteria. Culver's helps approve the proposed restaurant location and furnishes prototypical building plans or design assistance for existing buildings. For multi-unit development, it also grants development rights. After opening, Culver's provides ongoing support through field consultants who conduct periodic operations evaluations and provide reports. They offer advisory services in person or by phone, make available updates to the Business System, and develop national advertising materials. Franchisees also gain access to the Operations Manual, participate in mandatory promotional campaigns, and contribute to the Advertising Fund. Culver's provides and supports required computer systems, including a point-of-sale system, back office software, and online ordering, and offers electronic training programs through an online support center. They may also establish regional advertising cooperatives requiring participation.
Initial Training Hours
638
Training Location
Prairie du Sac, Wisconsin, or at a designated restaurant
Ongoing Support
After a Culver's restaurant opens, franchisees receive continuous support from Culver Franchising System, LLC. This includes periodic operations evaluations by field consultants who provide written reports to assist with restaurant operations, as well as advisory services available in person or by telephone. Culver's regularly shares updates and improvements to the Business System and provides electronic access to its confidential Operations Manual. The franchisor also develops national advertising production materials and, if established, requires participation in regional advertising cooperatives and promotional campaigns. Franchisees are supported with technology, including required computer systems and an e-learning program accessible via the internet, for which Culver's provides system updates and support.
Franchise Requirements
Ideal Candidate Profile
Culver's seeks hands-on owner-operators who are committed to managing their restaurant full-time on-site. If the franchisee is a corporate entity, the designated 'Operator' must hold at least 50% of the equity and voting interest, or at least 25% if they also own 25% of the building and real estate, and personally manage the restaurant full-time. Operators must be approved by Culver's, demonstrating strong managerial and business standards, along with the aptitude to operate and supervise a restaurant. Candidates are also required to have significant financial liquidity, specifically 20% of their total projected initial investment in cash or liquid assets. Culver's also offers a 'Mentoring Program' for existing franchisees in good standing who wish to open additional restaurants, buy an existing one, or add a partner, provided the mentee has served as a General Manager or equivalent at an existing Culver's restaurant for at least 12 months and meets new franchisee approval and skills assessment criteria.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
1
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Limited
Staff Count
74
Territory Size Requirements
Culver's typically grants franchisees a 'Designated Territory' of a 3-mile radius around their restaurant location. This radius may be smaller if the area contains physical barriers like a river or highway, has a high population density, or if the proposed site is not a freestanding building, lacks a drive-thru, or does not have dedicated parking. In major metropolitan areas with high traffic and density, Culver's reserves the right to define the Designated Territory using a written description or map rather than a radius. The boundaries are determined based on factors such as population base and density, affluence, density of residential and business entities, and major topographical features.
Staffing Notes
Culver's requires a strong on-site management presence, with the Operator (franchisee or managing partner) personally managing the restaurant full-time. The management team, typically comprising 6 to 8 individuals in addition to the Operator, must successfully complete Culver's manager training program. A critical requirement is that all managers, with a minimum of six employees, must be certified in the sanitation program for their state or the national program if no state-specific one exists. At least one certified management team member must be working each shift. Culver's mandates adequate staffing to commence business and for all operating hours, ensuring sufficient adequately trained and competent employees to operate the restaurant in compliance with standards and provide efficient customer service. Training estimates for a new franchisee include 7 managers and 75 crew members, while an existing franchisee opening a second location would train 3 managers and 55 crew members.