Culver’s Franchise Owner Salary, Profit & Failure Rate 2024

Are you looking to invest in a high profit earning franchise? If yes, then Culver’s might be a great option for you!

In this guide on how much does a Culver’s Franchise owner make, we have shared all the necessary details regarding Culver’s profitability sales figure and qualification requirement, among other things.

How Much Does A Culver's Franchise Owner Make

So make sure you go through this guide till the end so that you do not miss out on any important detail.


About Culver’s

Culver’s is a family-favorite restaurant that is known for its Fresh Frozen Custard, ButterBurgers, and Wisconsin Cheese Curds.

In the year 1984, Craig and Lea Culver, along with the support of Craig’s parents, opened their first store in their hometown Sauk City, Wisconsin.

Their unique and delicious ButterBurgers, Frozen custards, etc., won the heart of customers, and eventually, in 1990, they opened their first franchised store in Baraboo, WI.

Today there are more than 800 Culver’s restaurants in 26 states, and the chain continues to grow thanks to its unbeatable taste and customer-focused service.

Culver’s offers franchising opportunities to passionate and hard-working people. But of course, there are some qualifications that you must meet.

To learn more about their franchise qualification, details about their revenue, profit, etc., keep reading!


How Much Does A Culver’s Franchise Owner Make?

The money that Culver’s franchise owner can make varies depending on many factors, such as their location, advertisement in the area, management, and daily expenses, among others.

However, as per previous sales records, we can say that Culver’s franchise owner makes between $365,000 to $546,000 per year on average.

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Culver’s Franchise Investment Cost Breakdown

CostsAmount
Initial Franchise Fee$50,000
Land$330,000 – $1,800,000 – 45,000 to 60,000 square feet
Building$1,121,000 – $1,619,000
Site Work$258,000 – $906,000
Initial Inventory$35,000 – $50,000
Furniture, Fixtures Equipment and Supplies$395,000 – $510,000
Sign Package$106,000 – $220,000
Working Capital (first 3 months)$50,000 – $100,000
POS System$43,000 – $52,000
Expenses during Training$20,000 – $80,000
Miscellaneous Expenses$20,000 – $40,000
Estimated Total Investment$2,398,000 – $5,432,000

Please note that Culver’s does not offer in-house financing, but you can obtain investment from third-party sources.


How Much Does A Culver’s Employee Earn?

How Much Does A Culver's Employee Earn

According to ZipRecruiter, a Culver’s employee earns an average of $12.02 per hour to $28.79 per hour.

If we look at this in yearly terms, then someone in an entry-level position, for example, a team member at Culver’s, earns $25,000 a year on average. And a general manager at the highest level job at Culver’s earns $59,890 a year on average.

Please remember that Culver’s employee salary may vary depending on their position, location, skills, department, etc.


Pros & Cons Of Culver’s Franchise

Pros Of Culver’s Franchise

  • Comprehensive training and support
  • Marketing support
  • High profitability
  • Best quality food supply
  • Customer loyalty
  • Expanding menu
  • Unique niche

Cons Of Culver’s Franchise

  • High cost of investment
  • Require full-time work

Culver’s Franchise Average Revenue & Profit

The average gross sales of Culver’s is $2,600,000 per year, and their profit margin lies between 14%-21%, with the average being 17.5%.

Keeping this in mind, we estimate that Culver’s franchise’s average profit is between $365,000 to $546,000, with the average net profit being $455,000.

This is how we calculated this amount:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%2600000.00
Rent10.31%(268125.00)
Insurance5.16%(134062.50)
Salaries20.63%(536250.00)
Franchise Royalty Fees5.16%(134062.50)
Utilities2.06%(53625.00)
Cost of Goods Sold (COGS)25.78%(670312.50)
Labor (Variable)13.41%(348562.50)
Total (Expenses)82.50%(2145000.00)
Net Profit17.50%455000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Culver’s Company Overall Profit

Culver’s financial statements are not completely available to the public. However, as per Zippia, Culver’s annual revenue is $3.2 Billion.

Additionally, Culver’s has 20,000 employees, and the revenue per employee ratio of Culver’s is $160,000.


Culver’s Franchise Failure Rate

Culver's Franchise Failure Rate

Culver’s is one of the most successful franchises to invest in. 7% is the national franchise failure rate; however, Culver’s has an astonishingly low franchise failure rate of less than 2%, and this is really less than the national average.

The reason why Culver’s franchise is so successful is that its franchise process is taken very seriously.

All operators are compulsorily required to attend a boot camp where they are put to work in Culver’s restaurant so that the franchisee knows what it takes to become a Culver’s franchise owner.

Apart from this, Culver’s has always focused on quality rather than quantity and has always resisted the temptation to expand quickly. 

Here is a calculation of Culver’s failure rate:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2017597634+37
2018634680+46
2019680726+46

For the Franchised outlets:

  • In 2017, the growth rate was (37)/597×100≈6.19%
  • In 2018, the growth rate was (46)/634×100≈7.25%
  • In 2019, the growth rate was (46)/680×100≈6.76%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201787-1
201876-1
201966

For the Company-Owned outlets:

  • In 2017, the failure rate was (3)/5×100≈12.5%
  • In 2018, the failure rate was (1)/2×100≈14.28%
  • In 2019, the failure rate was (1)/2×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2017605641+36
2018641686+45
2019686733+47

For Total outlets:

  • In 2017, the growth rate was (36)/605×100≈5.95%
  • In 2018, the growth rate was (45)/641×100≈7.02%
  • In 2019, the growth rate was (47)/686×100≈6.85%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Culver’s grew from 2017 to 2019, showing a growth rate between 6.19% and 6.76%.

On the other hand, for company-owned outlets, the failure rate of Culver’s was lying in the range between 12.5% and 0.00% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Culver’s franchise has expanded in the years 2017-2019 showing a total growth rate between 5.95% and 6.85%.


Culver’s Franchise Payback Period

To find out the Culver’s franchise payback period, let us do some calculation:

AVERAGE INVESTMENT$2,398,000 – $5,432,000
AVERAGE REVENUE PER OWNER$2,600,000
AVERAGE PROFIT PERCENTAGE17.5%
AVERAGE PROFIT PER YEAR$455,000
AVERAGE PAYBACK PERIOD5 Years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 2398000/455000= 5.27 = 5 Years based on median

The average investment for the Culver’s franchise is $2,398,000 – $5,432,000 and the average revenue per owner is $2,600,000

With an average profit percentage of 17.5%, the average profit per year is $455,000 on the lower end.

This means that the average payback period for the Culver’s franchise is approximately 5 years on the lower end, as the total investment of $2,398,000 would be recouped within this period.


Culver’s Might Be The Hardest Franchise To Get

Culver’s franchise owners make a very high amount of profit, have a failure rate of less than 2%, and are one of the best franchises to own.

As such, it is no wonder that Culver’s might be one of the hardest franchises to get. Here is what you need in order to qualify for owning the Culver’s franchise:

  • You need to have a minimum of $500,000 in liquid assets.
  • And if you prefer to own the building, real estate, and equipment, then you need a minimum of $750,000 in liquid assets.
  • The owner-operator must maintain 50% ownership of the business or a minimum of 25% real estate and business.
  • The owner-operator must be involved in the business full-time.
  • After the franchise owner’s initial selection, he/she must spend a week working at a Culver’s restaurant, performing every single role and being graded for it.
  • If the person performs well enough, he/she will be invited to spend four months in Prairie du Sac for a training program that they must graduate in.

((https://www.culvers.com/franchise/faq))


Facts About Culver’s Franchise

  • The Culver family had plenty of experience before they opened their restaurant. George and Ruth owned Farm Kitchen resort at an A&W franchise. Even Craig worked at McDonald’s.
  • Culver’s famous ButterBurger is based on Ruth’s recipe, as she had been serving butter burgers ever since Craig was a kid.
  • More than 5,400 dairy cows work daily just to produce milk for Culver’s.
  • As per a survey, Culver’s is the nation’s third favorite QSR after Chick-fil-A and Tropical Smoothie Cafe.
  • There are more than 80 frozen custard flavors offered by Culver’s.

((https://www.thrillist.com/eat/nation/trivia-about-the-midwestern-burger-and-frozen-custard-chain-culver-s))


What Is Culver’s Known For?

What Is Culver's Known For

Culver’s is a casual fast-food restaurant known for its ButterBurgers and Frozen Custard mainly. But it also serves other lip-smacking items such as chicken, fish, cheese curd, burger, shakes, and more.

The secret behind Culver’s success is its uncompromised focus on quality. The company source the best quality ingredients to offer you the best taste.

They never use frozen meats and always source them fresh from America’s family farms and dairy items from family farm-fresh dairy.

Another reason for their popularity and customer loyalty is that they take customer service very seriously.

And great food coupled with great customer service is what keeps their customers coming in.

Here is a list of some of the most popular items on Culver’s menu apart from their ButterBurgers and Frozen Custard:

  • North Atlantic Cod Dinner
  • Onion Rings
  • Wisconsin Swiss Melt
  • Blueberry Cobbler Concrete Mixer
  • The Culver’s Deluxe
  • Chicken Noodle Soup

Is Culver’s Franchise Profitability?

The profitability of any company depends on many factors, such as demand, marketing efforts, sales, and also an investment.

In the case of Culver’s franchise, the investment amount is very high, $2,398,000 – $5,432,000, so the franchise owner might expect a higher revenue as well, and rightly so.

Culver’s is a very popular food chain and has years of customer loyalty.

Surely, the franchise owners are required to put in a hefty amount of investment, but Culver’s franchise profitability is very high.

And Culver’s franchise owner makes as much as $365,000 to $546,000 profit per year on average. 


Culver’s Franchise Earning Potential

The earning potential of Culver’s franchise is very high. And the profit one can make is directly proportional to its sales.

So as of now, a Culver’s franchise easily makes sales of $2,600,000 per year on average, and in the year 2021, the company’s system-wide sales grew by 25.3%.

The best part is that their sales growth is continuously growing, making more room for profits to come in.

So if you are looking to invest in a highly profitable franchise opportunity, then Culver’s is a great choice for that. 


Wrap Up

After looking at all the Culver’s franchise details, here’s what we conclude:

Culver has a stringent qualification process and requires you to put in a heft initial investment of $2,398,000 – $5,432,000.

However, it also has a very high profit-earning potential, and franchise owners easily make $365,000 to $546,000 profit per annum on average.

If you have this kind of money to put in and then Culver’s is one of the best franchise opportunities that you can get.


Frequently Asked Question

After completing the training how soon can I open my Culver's?

It might take four-five months for to open the Culver’s restaurant depending on how speedily you can hire a crew.

Who is responsible for advertising Culver's?

New franchisees are required to pay 2.5% as advertising fees, and they are also required to spend at least a percent of their gross sales each year on promotional and advertising activities.

Does Culver's offer territory protection to franchisees?

Yes, they offer territory protection of 3 miles typically, but it may be less for densely populated areas.

What is Culver's franchise term length?

For the first timers, Culver’s franchise term length is 15 years which can be renewed for addtional 10 years after completion.

What is the current royalty fees of Culver's?

Culver’s charge a royalty fee of 4% of gross sales as of 2023.

Who is the owner of Culver's?

Culver’s is a family-operated restaurant. It was started in 1984 by Craig and Lea Culver, along with Craig’s parents. They opened their first-ever restaurant in their hometown of Sauk City, Wisconsin.

Where is Culver's headquartered?

Culver’s headquarters is located in Prairie du Sac, Wisconsin.

How many location does Culver's has?

There are 960 Culver’s restaurants in the United States. The state with the most Culver’s restaurants in the US is Wisconsin. It has 149 restaurants of the company.

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