How the Culver’s Franchise Was Built to Grow

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®, Culver’s 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 chart 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 webinar hosted by The Restaurant Finance Monitor. 

“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 & 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 Entrepreneur 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.