Culver’s Franchise Cost, Revenue, and Is It a Good Investment?
Culver’s is one of those brands that almost everyone likes. Strong food. Loyal customers. Clean stores.
But when you start looking at it as an investment, the question changes: Is Culver’s actually a good franchise to own? The answer is not as simple as it looks.
On one hand, this might be one of the strongest-performing franchise systems in the country.
On the other, it’s one of the most difficult to actually execute.
How Much Does a Culver's Franchise Make?
Let’s start with what gets most people interested. According to their most recent 2025 FDD:
- Average annual sales: ~$4.1 million
- Median sales: ~$4.0 million
- Many locations exceed $5 million+
- Some locations surpass $9 million
That is very high for the fast food category. But what really stands out is not just the averages. Culver’s provides one of the most detailed Item 19 disclosures you’ll see in franchising.
They break sales down by State and geographic region, Population within a 3-mile radius, Household income levels, Number of employees in the area, Number of nearby restaurants, and Proximity to highways and interstates.
👉 This level of detail gives a much clearer picture of what drives performance.
What you see: Most locations consistently fall in the $3M to $5M range, not just a few outliers skewing the data.
Does Location Matter as Much as You Think?
One of the more surprising insights from the data: Being near a highway doesn’t dramatically change performance. Near interstate is around $4.15M average and not near interstate: is around $4.14M average. That’s basically identical.
Even when looking at population density: Larger markets perform well but smaller markets still hold up.
The most important expense in this model is labor. Great Clips reports that labor runs at about 49% of revenue in the average reporting salon. That is enormous, and it highlights what kind of business this really is.
This is not a highly automated model. It is a labor-intensive, service-based business where revenue depends on having enough stylists, keeping them staffed, and generating enough traffic to cover payroll while still producing acceptable profit.
Other major expense categories include Occupancy: around 11%, Royalty fees: around 6%, Advertising fund: around 5%, Product costs and other operating expenses: additional ongoing costs that add up quickly. In total, average expenses run at over 80% of revenue.
How Much Does a Culver's Franchise Cost?
This is where things start to shift. This immediately limits who can even consider the opportunity.
- Total investment: $3.4 million to over $10 million
- Liquidity requirement: 20% of total investment
- Royalty: 4%
- Advertising: 2.5%
Even if you can afford it, there’s another layer many people underestimate. This is not a simple business.
You are operating a large, freestanding building, a full kitchen, a high employee count (often 10+ per shift) and significant food and labor costs.
This is a true restaurant operation, not a semi-passive or lightly managed business.
Pricing Risk: The Part Most People Miss
Culver’s positions itself as a higher-quality, premium fast food option. That shows up in pricing. When consumers start cutting back, they don’t stop eating out. They just choose cheaper options.
Example comparison for a similar meal (burger, fries, drink):
- Burger King: $8.19
- McDonald’s: $9.99
- Culver’s: $11.79
That is:
- ~18% higher than McDonald’s
- ~44% higher than Burger King
Final Verdict: Is Culver’s a Good Franchise?
Culver’s stands out for something you don’t always see in food franchises, and that’s stability. With over 1,000 locations, very few closures, minimal terminations, and consistent year-over-year growth, the system is unusually steady for the restaurant industry. Most food franchises experience some level of churn, but Culver’s largely does not.
When you step back and look at the full picture, Culver’s is a strong franchise system. It has high average revenue, detailed and transparent performance data, a stable and growing network, and a relatively reasonable fee structure compared to other major food brands. That said, it does come with tradeoffs. The startup cost is very high, the operation itself is complex, and the business is exposed to discretionary spending. This is not a beginner franchise. It’s a capital-intensive, hands-on business that requires strong execution to succeed.
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