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If you’ve ever taken a road trip through Wisconsin, Michigan or Ohio, you’ve likely seen a blue and white neon sign on the side of the highway that reads “Culver’s.” Best known for their signature ButterBurgers®, <a href="https://www.culvers.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-culvers-franchise-was-built-to-grow-2713674" target="_blank" rel="nofollow">Culver’s</a> stands out among other fast-food chains for their delicious Frozen Custard. Each Culver’s location offers a new flavor every day, along with the classic vanilla, strawberry, and chocolate. What started out as Wisconsin’s best-kept fast-food secret has now developed into the Midwest’s favorite chain, and the brand’s success isn’t stopping there.According to a <a href="https://www.entrepreneur.com/franchises/culvers/282264?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-culvers-franchise-was-built-to-grow-2713674" target="_blank" rel="nofollow">chart </a>from Entrepreneur’s Franchise 500, the number of Culver’s franchise locations has increased by 72% since 2010, jumping from 412 locations nationwide to 709 by 2019. Though the COVID-19 economy is likely to affect the number of openings in 2020, the chain certainly has the potential to continue growing, given their track record.Through the harrowing COVID-era times, the brand continues to sell their custard to their devoted customer base. President and CEO Joe Koss addressed the corporate team’s concerns regarding the pandemic in a <a href="https://register.gotowebinar.com/recording/4974061268261466883?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-culvers-franchise-was-built-to-grow-2713674" target="_blank" rel="nofollow">webinar </a>hosted by The Restaurant Finance Monitor.&nbsp;“Early on in this pandemic we started to see the news and put a team together to really address this growing concern,” Koss said. “We’ve been very fortunate though all of this that we have been able to stay open and stay open in our drive-thrus; it’s these open owner-operators and restaurant teams that have just stepped to the plate and taken on this challenge.”To the franchise model’s credit, one of Culver’s founding principles is to put their employees &amp; franchisees first. The franchise itself was built from the ground up by Craig and Lea Culver and their family, and that element of family service has attracted the right people on franchise ownership.The first Culver’s opened in 1984, with the first successful franchise opening just six years later in Baraboo, Wisconsin. Culver’s requires their owners and operators to work right in the restaurant to keep them in tune with the needs of their customers and employees — a similar model to a truly family-owned local restaurant.The initial investment for a Culver’s franchise is roughly between $1,970,000 – $4,714,000, with a $350,000 – $600,000 liquid cash requirement. Much in keeping with their principle to keep their franchisees first, Culver’s has cultivated ties with a number of third-party sources that offer financing to cover the franchise fee, startup costs, equipment, inventory, accounts receivable and payroll. Overall, the effort Culver’s puts into supporting its franchisees has resulted in a successful brand and a strong offering.“We have an engaged group of franchisees who never settle for the status quo,” Koss said in a recent <a href="https://www.entrepreneur.com/article/344516?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-culvers-franchise-was-built-to-grow-2713674" target="_blank" rel="nofollow">Entrepreneur</a> interview. “We [in the corporate office] have the same mentality at our support center.”Culver’s development can also be credited to their incredible customer service. As it says on their company website, one of the guiding principles of the franchise is to make people happy. Though one can argue a scoop of delicious frozen custard alone is enough to make someone’s day, Culver’s way of welcoming guests is what keeps them coming back for more.The brand aims to make a positive impact on the communities it serves through various efforts, including their Thank You Farmer® Project. The initiative began in 2013 to support agricultural education programs that encourage smart farming, and Culver’s invites restaurant-goers to contribute with each meal.If you’re looking for a brand that’s built to sell, Culver’s is worth a second look. Not only has the brand implemented a strong, community-oriented structure, but their delicious food speaks for itself.

How the Culver’s Franchise Was Built to Grow

1851 Franchise

The Midwestern chain has stayed true to its roots while still steadily expanding across the nation.

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Beansquad

BeanSquad - Franchisee Profile - Steve Bjorkman - The UPS Store - 1851 Franchise

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Benjamin Franklin Plumbing

This Benjamin Franklin Plumbing Franchisee Built a Family Business that is Opening Doors for Women Across the Trades

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Right at Home

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KidStrong Franchising, LLC

How This Former Sales Executive Is Building Confident Kids Across Orange County With KidStrong

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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How the Culver’s Franchise Was Built to Grow

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