2026 FDD Issued Mar 30, 2026 Minnesota Commerce (CARDS) Checked Oct 23, 2026
Culver's Franchise Cost (2026)
A Culver's franchise costs an estimated $3,406,350 – $10,294,100 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $65,000 initial franchise fee (Item 5) and covers this format: Freestanding Restaurant. Item 6 lists service fee: 4% of Gross Sales, subject to the conditions below.
- Total investment
- $3.41M – $10.29MItem 7 source and qualifications
- Franchise fee
- $65KItem 5 source and terms
- Service Fee
- 4% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 2.5% of Gross SalesItem 6 conditions and fee bases apply
- Units (2025)
- 1,041Item 20 source and scope
- Franchise exit rate
- 0.1% / yrCalculated 3-year average; definition and source
What stands out about Culver's
The Item 7 estimate separates land, site work and the building. Each has its own range, so quoting only the franchise fee leaves out the main site-related spending. The furniture and equipment row also excludes the separately priced sign package and POS system; those allowances cannot be treated as one equipment subtotal.
Company-owned operating costs are presented separately from franchised restaurant sales. The company table is not a disclosed franchisee profit distribution. The sales-bracket threshold is also a category boundary rather than an individual restaurant’s result, so the financial-performance table keeps that label explicit.
What are the initial franchise fees and financial requirements for Culver's?
Item 5 lists an initial franchise fee of $65,000 for Culver's. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 11-12) sets the initial franchise fee for a new franchisee at $65,000, paid when the Franchise Agreement is signed within 24 months of operational approval. A $5,000 Application Fee is due with the Preliminary Agreement and is credited toward the fee; it is refunded if the applicant is not approved. Qualified existing franchisees opening an additional restaurant pay $55,000 and the Application Fee is waived; the Mentoring Program fee is $45,000; qualified veterans opening a first restaurant receive a $10,000 reduction. A franchisee who ends the agreement before the fifth week of the Franchisee Development Program and signs a release receives 75% of the fee back. Separately, a Territory Reservation Agreement costs $40,000 (partly creditable toward the fee) and a Development Agreement costs $50,000 per scheduled restaurant, refunded if the schedule dates are met.
Source: Culver's 2026 FDD, Item 5, PDF p. 11.
This record lists no minimum net worth or liquid-capital requirement for Culver's, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Culver's franchise? (Item 7)
Source: Culver's 2026 FDD, Item 7, PDF p. 15.
Item 7 of Culver's 2026 Franchise Disclosure Document estimates the total cost to open one freestanding restaurant at $3,406,350 – $10,294,100. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $35,000 | $65,000 |
| Land | $225,000 | $2,400,000 |
| Site Work | $356,000 | $2,193,000 |
| Building | $2,047,000 | $4,391,000 |
| Travel, Living and Expenses during Training | $20,000 | $80,000 |
| Initial Inventory | $50,000 | $65,000 |
| Furniture, Fixtures Equipment and Supplies | $458,000 | $584,000 |
| Sign Package | $88,000 | $300,000 |
| POS System | $42,350 | $56,100 |
| Miscellaneous Expenses | $20,000 | $40,000 |
| Additional Funds (working capital) - for 3 months | $65,000 | $120,000 |
| Total | $3,406,350 | $10,294,100 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
Item 7 (PDF pages 15-17) prints $3,406,350-$10,294,100 for the restaurant estimate. Land is $225,000-$2,400,000, site work $356,000-$2,193,000 and building $2,047,000-$4,391,000; note 3 says the land minimum is lower if the land is leased. Furniture, fixtures, equipment and supplies exclude the separate sign package and POS system. Additional funds for three months are $65,000-$120,000. The table lists the initial franchise fee as $35,000-$65,000; note 2 refers to the additional-restaurant, Mentoring Program and Veterans' Discount reductions described in Item 5.
What ongoing royalties and fees does Culver's charge? (Item 6)
Source: Culver's 2026 FDD, Item 6, PDF p. 13.
Item 6 of Culver's 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Service Fee | 4% of Gross Sales | Every period | 4% of Gross Sales paid monthly via electronic funds transfer (EFT) on or before the tenth day of the following month. (Item 6, PDF p. 13) |
| Advertising Fee | 2.5% of Gross Sales | Every period | 2.5% of Gross Sales paid monthly into the Advertising Fund via EFT. Franchisees who signed before March 31, 2012 contribute 2% (Item 11, PDF page 22). (Item 6, PDF p. 13) |
| Local Advertising | 1% of Gross Sales | When it applies | Item 11 (PDF page 23) requires spending at least 1% of Gross Sales on approved local advertising. This is a spending requirement paid to media and vendors, not a fee in the Item 6 table. (Item 6, PDF p. 23) |
| Cooperative Advertising | 0% – 4% of Gross Sales | When it applies | If a regional advertising co-op is formed, members vote on contributions of up to 4% of Gross Sales, and all franchised and company-owned restaurants in that co-op contribute at the same rate. Item 11 (PDF page 23) says part of the co-op contribution would cover the Advertising Fee and local advertising requirements. (Item 6, PDF p. 13) |
| Additional Training | $1,000 | When it applies | $1,000 per person, due 2 weeks before beginning additional training following completion of the Franchisee Development Program. (Item 6, PDF p. 13) |
| Additional Assistance | $500 per week | When it applies | $500 per week, due 30 days after billing for special operational assistance or training requested by the franchisee. (Item 6, PDF p. 13) |
| Custom Design Fee | $0 – $5,000 | When it applies | Up to $5,000 payable at the time changes to standard prototypical building plans are requested, to compensate franchisor for review time and architectural expenses. (Item 6, PDF p. 13) |
| Extraordinary Building Assistance Fee | $0 – $50,000 | When it applies | Up to $50,000 due at ground breaking if the project is bid or constructed without complete sealed architectural, HVAC, electrical, and food service plans prepared by a licensed professional. (Item 6, PDF p. 13) |
| Building Conversion Fee | $0 – $10,000 | When it applies | Up to $10,000 due at final plan approval for conceptual sketches and plan evaluation when converting an existing commercial building into a restaurant. (Item 6, PDF p. 13) |
| Site Design Fee | $1,000 | When it applies | $1,000 per site location after the first two locations evaluated, due prior to site layout on the third and each subsequent site. (Item 6, PDF p. 13) |
| Transfer Fee | $10,000 | When it applies | $10,000 plus franchisor's legal fees, due before completion of transfer. Reduced to $5,000 plus legal fees if the purchaser is an existing Culver's franchisee. (Item 6, PDF p. 13) |
| Renewal Fee | $40,000 | When it applies | $40,000 due upon signing a successor franchise agreement upon expiration of the initial 15-year term. (Item 6, PDF p. 14) |
| Insurance Reimbursement | Varies | When it applies | Reimbursement of insurance costs if the franchisee does not maintain the required coverage and the franchisor pays for it. (Item 6, PDF p. 14) |
| Audit Fee | Varies | When it applies | Cost of inspection or audit, due 30 days after billing if audit reveals an understatement of Gross Sales in excess of 2%. (Item 6, PDF p. 14) |
| Interest on Late Payments | 1.5% | When it applies | Lesser of 1.5% per month or the highest contract interest rate permitted by state law on all overdue balances, due 30 days after billing. (Item 6, PDF p. 14) |
| Management Fee | Varies | When it applies | Reasonable rate determined by franchisor for appointed operational management in the event of the franchisee's death or disability. (Item 6, PDF p. 14) |
| Gift Card Transaction Fee | $0.22 – $0.35 | When it applies | $0.22 per redeemed gift card transaction at the restaurant, with right to increase up to $0.35 per transaction. (Item 6, PDF p. 14) |
| Attorneys' Fees and Costs | Varies | When it applies | Actual costs and legal fees incurred by franchisor if franchisee fails to comply with any provision of the Franchise Agreement. (Item 6, PDF p. 14) |
| Indemnification | Varies | When it applies | Reimbursement of all damages, claims, and expenses incurred by franchisor arising from restaurant operations. (Item 6, PDF p. 14) |
| Supplier Payments | Varies | When it applies | Reimbursement of unpaid debts owed by franchisee to suppliers, lessors, or creditors paid by franchisor on franchisee's behalf. (Item 6, PDF p. 14) |
| Product and Supplier Testing | Varies | When it applies | Actual cost of evaluating and testing new products or suppliers proposed by the franchisee, due 30 days after billing. (Item 6, PDF p. 14) |
| Relocation Expenses | Varies | When it applies | Costs incurred by franchisor in evaluating, approving, and inspecting a relocated restaurant premises. (Item 6, PDF p. 14) |
| Technology Fee | $600 – $1,000 per month | When it applies | Estimated $600 to $1,000 per month payable via EFT on or before the 10th day of the following month for use of online support center and system networks. Currently reserved but not charged. (Item 6, PDF p. 14) |
| Development Schedule Extension | $20,000 | When it applies | $20,000 per restaurant for an extension of up to 6 months to sign a franchise agreement or open a restaurant under a multi-unit schedule. Limited to a single extension. (Item 6, PDF p. 14) |
| Territory Reservation Extension | $10,000 | When it applies | $10,000 for a single 6-month extension of the reservation period under a Territory Reservation Agreement. (Item 6, PDF p. 14) |
Among the published restaurants & food records with comparable flat royalties, the median is 6%; Culver's lists 4%. This is the site’s sample, not an industry-wide estimate.
Explore annual fees and payback assumptions
Start with the recorded Culver's inputs, then enter your own operating costs and sales assumptions. The result is a scenario, not an FDD profit forecast.
Culver's startup investment and modeled fees over 10 years
Over a 10-year period, startup investment plus modeled recurring fees for Culver's total approximately $6,099,129 – $12,986,879. Based on the average gross sales for franchised restaurants open full year disclosed in Item 19 ($4,142,737, 2025), recurring fees come to about $269,278 a year:
| Expense Component | Low ($) | High ($) |
|---|---|---|
| Startup investment (Item 7) | $3,406,350 | $10,294,100 |
| Recurring fees × 10 years (Item 6) | $2,692,779 | $2,692,779 |
| Startup + modeled fees | $6,099,129 | $12,986,879 |
Calculated model, not a disclosed FDD total. Assumes flat sales at the disclosed figure. Excludes rent, payroll, food or product costs and taxes, which the FDD does not set. Change the assumptions in the calculator · Estimate your payback for Culver's.
Source: Culver's 2026 FDD, Item 7 (startup inputs), PDF p. 15.
Source: Culver's 2026 FDD, Item 6 (fee inputs), PDF p. 13.
Source: Culver's 2026 FDD, Item 19 (sales input), PDF p. 37.
Item 20: Culver's franchised outlet history
Source: Culver's 2026 FDD, Item 20, PDF p. 53.
Item 20 Table 3 reports 1,034 franchised outlets at the end of 2025. The company-owned table reports a further 7 outlets. Our calculated average annual franchised exit rate is 0.1% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 886 | 52 | 1 | 937 | 0.1% |
| 2024 | 937 | 53 | 0 | 990 | 0% |
| 2025 | 990 | 45 | 1 | 1,034 | 0.1% |
Franchised units went from 886 to 1,034 over 3 years (+148).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Culver's exit rate with other brands.
20 units changed owners in 2025.
Item 20 Table 3 (PDF pages 51-53) prints national totals on PDF page 53. Table 4 (PDF page 53) reports the company-owned restaurants; transfers come from Table 2 (PDF pages 49-51).
How much do Culver's franchise owners make? (Item 19)
Source: Culver's 2026 FDD, Item 19, PDF p. 37.
Item 19 of the 2026 FDD reports average gross sales for franchised restaurants open full year of $4,142,737 (2025, 988 franchised restaurants open all 12 months in 2025). Culver's Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (4% of Gross Sales) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every Culver's Item 19 figure, with its period and sample.
Estimate your payback for Culver's using Item 7 startup costs and Item 6 fee rules.
How to interpret Culver's Item 19 figures and sample limits.
How long is the Culver's franchise agreement term?
Source: Culver's 2026 FDD, Item 17, PDF p. 33.
The standard Culver's franchise agreement runs 15 years, with renewal terms of 10 years.
Initial franchise term of 15 years with one additional renewal term of 10 years.
How long does it take to open a Culver's franchise? (Item 11)
Source: Culver's 2026 FDD, Item 11, PDF p. 23.
Item 11 of the 2026 FDD states the time from signing the franchise agreement to opening: as little as 4 months, and no later than 24 months.
Franchises with a similar investment range
These published records are selected by proximity to Culver's $3,406,350 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
Compare other restaurants & food franchises
Frequently Asked Questions about Culver's
- How much does it cost to open a Culver's restaurant?
- Item 7 of the 2026 FDD estimates $3,406,350 – $10,294,100 to open a restaurant, including the initial franchise fee. Land, site work and the building are separate lines, and together they make up most of the estimate.
- What ongoing fees does Culver's charge?
- Item 6 lists a service fee of 4% of Gross Sales and an advertising fee of 2.5% of Gross Sales, both paid monthly. Item 11 also requires a minimum local advertising spend, and a regional co-op, if one is formed, can set its own contribution up to a stated cap.
- How long is a Culver's franchise agreement?
- The franchise agreement runs 15 years. Item 17 allows one renewal term if the franchisee is in good standing and signs a successor agreement.
- What sales does Culver's report in Item 19?
- Item 19 reports average sales of $4,142,737 for franchised restaurants open all of 2025. These are sales before costs, not owner profit, and the FDD says the figures were not audited.
Sources
Culver Franchising System, LLC Franchise Disclosure Document, issued March 30, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 11
- Item 6: cited PDF p. 13
- Item 7: cited PDF p. 15
- Item 19: cited PDF p. 36
- Item 20: cited PDF p. 53
- Agreement term (Item 17): cited PDF p. 33
Page references for Culver's use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 29, 2026: Record updated.
- October 23, 2026: Source check completed against the recorded FDD.
- October 23, 2026: Complete source recheck against the March 30, 2026 FDD (PDF pages 1-53): cover, Item 1, Item 5, all 24 Item 6 table rows, Item 11 advertising terms, every Item 7 row and total, Item 17 term, Item 19 Table 1 and Item 20 Tables 1-4. Corrected the franchising start year (1990), the standard initial fee, Item 6 page citations and row order, and the Table 3 page; labeled the local advertising requirement as an Item 11 spending requirement. The source hold is cleared.
- October 19, 2026: Source review hold recorded: The October 19 audit corrected conflicting Item 7 prose, selected financial-performance labels and PDF references. The fee schedule and remaining record sections still require a complete source recheck; the historical source-check date is not renewed by these targeted corrections.
- October 16, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 30, 2026).