Culver's Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Culver's is a Midwest fast-casual chain known for ButterBurgers, fried cheese curds, and fresh frozen custard. Franchisees run restaurants with counter and drive-thru service, managing food quality, custard production, and a 40 to 80 person staff.
FranchiseVerdict summary · 2026
A Culver's franchise requires a total initial investment of $2.8M – $6.9M, including a $55K franchise fee and an ongoing 4.0% royalty[2]. Per the 2024 FDD, average unit revenue was $3.5M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 114 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $2.8M – $6.9M
- 100th pct Service Resta…
- Avg gross sales
- $3.5M
- 36th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 944
- 92nd pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $2.8M – $6.9M including a $55K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $3.5M/year (median $3.4M).
- RISKVerdict A (Strongest tier), verdict score 89/100 (higher is better). SBA loan charge-off rate of 0.0% across 114 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Culver Franchising System, LLC
- Parent company
- Culver Franchising System Deluxe, LLC
- Ultimate parent
- Culver Holdings, Inc.
- Predecessor
- Culver Enterprises, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Enrique Silva
- Incorporated in
- WI
- HQ
- 1240 Water Street, Prairie du Sac, Wisconsin 53578
- Auditor
- Madison, Wisconsin (firm name not specified in text)
- Audited financials
- Franchisor revenue
- $263.8M
- vs $222.1M prior year
Overview
About
- CEO
- Enrique Silva
- Headquarters
- WI
- Founded
- 1984
- FDD year
- 2024
- States available
- 26
Can you afford it, and what does the money buy?
Entry cost runs 629% above the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown7 line items
Initial investment breakdown
| Line item | Low | High |
|---|---|---|
| Land Acquisitionnot refundable | — | — |
| Site Developmentnot refundable | — | — |
| Building Constructionnot refundable | — | — |
| Training Expensesnot refundable | — | — |
| Initial Inventorynot refundable | — | — |
| Furniture, Fixtures, Equipment and Suppliesnot refundable | — | — |
| Signs (Interior and Exterior)not refundable | — | — |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $2.8M – $6.9M
- Bottom third — review vs category
- Liquid capital req'd
- $50K – $100K
- Bottom third — review vs category
- Franchise fee
- $55K – $55K
- Bottom third — review vs category
- Royalty
- 4.0%
- typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $300 |
| Transfer fee | $10K |
| Renewal fee | $30K |
| Inventory (initial) | $50K – $65K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 203% above the quick-service restaurants norm.
Source: FDD 2024 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Culver's until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$4.9M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Culver's unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
- Avg gross sales
- $3.5M
- Per unit, per year
- Median gross sales
- $3.4M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 884 outlets
- vs category median 18 · large
- Range (low → high)
- $1.0M→$7.4M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $3.5M/year in gross sales. Revenue-to-investment ratio: 0.7x.
Fee burden
Total ongoing fee load of 6.5% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 12.8% CAGR over 3 years across 944 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Culver's Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 944
- Opened
- 52
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.1%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- +12.8%
- Net unit change over 3 years
- 3-yr CAGR
- +12.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 52
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 16
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Illinois
- Indiana
- Michigan
- New York
- South Dakota
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 114
- Loan volume
- $159.2M
- Median loan
- $866K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 36
- Defaults
- 0
- Typical loan rate
- 5.0%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 5,420
- 3.4 per loan
- Lender concentration
- 25%
- top lender's share
Borrower mix: 86% went to startups / new businesses, 14% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Culver's charge-off rate by loan vintage
Top lenders financing Culver's franchisees
Showing 3 of 36 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Culver's's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 6-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 114 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Culver's presents moderate-to-low risk with strong unit economics and zero litigation, but high capital requirements and modest growth rate warrant careful due diligence on territory saturation and real-world payback timelines.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Madison, Wisconsin (firm name not specified in text)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2023 consolidated: franchise revenue $236,209,862 + company restaurant sales $27,599,972 = total operating revenues $263,809,834. Auditor firm name not present in extracted text (signed Madison, WI, March 4, 2024).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 89 / 100 verdict
- 01MINORHigh initial investment ($2.8M-$6.9M) creates significant capital requirement and payback pressure
- 02MINOR4% royalty plus typical 2-3% marketing fund reduces net margin; at $457K avg net income, ongoing fees consume ~26% of profit
- 03MINORModest unit growth (5.8% YoY) is healthy but slower than QSR category average (8-10%), suggesting market saturation in mature regions
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 6 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Sauk County, Wisconsin |
| Jury trial waiver | No |
| Governing law | WI |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 122 hrs
- On-the-job training
- 550 hrs
- Training location
- Prairie du Sac, Wisconsin, or at a Restaurant designated by franchisor
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- PAR Brink
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: PAR Brink
Item 20 · call current owners
Franchisee Contacts
936 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Culver's · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Culver's franchise?
The total investment to open a Culver's franchise ranges from $2.8M – $6.9M, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Culver's franchise owners earn?
According to Item 19 of the Culver's FDD, the average gross sales per unit is $3.5M. The median is $3.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Culver's FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Culver's FDD and qualifies whose outlets they describe.
What is Culver's's franchise failure rate?
Based on SBA 7(a) loan data, Culver's has a charge-off rate of 0.0% across 114 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Culver's franchise locations are there?
As of their most recent FDD filing, Culver's has 944 total units in the United States, including 937 franchised units and 7 company-owned units. 52 new units were opened in the latest reporting year.
Is Culver's a good franchise to buy?
FranchiseVerdict rates Culver's as a A-grade franchise with a verdict score of 89 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.