How Much Money Does A Culver's Franchise Make

A head-to-head battle of burgers-and-frozen-treats franchises

The hardest part of the shopping experience, even when you're shopping for franchises, is when you've narrowed down your selection to the final few. If you're looking for a food franchise that embraces value pricing, good food and a place where the family can dine in or carry out, both A&W Restaurants and the Culver's franchise can fit the bill. So, how do you know which one to choose?

First, let's compare the numbers side-by-side:

A&W vs. Culver's franchise

A&W Restaurants	Culver's
Year founded	1919	1988
No. of units	625+	660+
Initial investment	$838,500 to $1.2 million	$2 million to $4.6 million
Minimum liquidity	$150,000	$350,000
Minimum net worth	$350,000	$600,000
Franchising fee	$30,000	$55,000

SOURCES: Entrepreneur.com; culvers.com/franchise

As of 2018, Culver's is a slightly larger chain, with a higher initial investment, higher capital requirements and larger franchise fees. They've also been in business for around 35 years, compared to our 100 years. All in all, we think they're a worthy competitor. However, there's a story these numbers don't tell.

Strong brand, strong sales

Culver's has been building its brand since Ronald Reagan was president. We've been building ours since we first served Root Beer at a parade for returning WWI veterans. One hundred years of marketing and happy memories have made our brand recognition close to universal. Our fresh-made Root Beer, delicious burgers and fries, and amazing hand-breaded chicken tenders keep customers coming in, day after day and year after year. But don't just take our word for it: Our same-store sales have increased 33% on average since 2011.

Exceptional distribution network

Our restaurant franchise is one of the few that works extremely well in small towns, thanks to our far-reaching distribution network, Restaurant Supply Chain Solutions (RSCS). When A&W Restaurants split away from its former owner, Yum! Brands, we negotiated an ongoing partnership with RSCS, which delivers supplies for Pizza Hut, KFC and Taco Bell. RSCS delivers almost everywhere, which gives us incredible reach and the ability to cost-effectively get supplies to even out-of-the-way locations. The cost savings also allow A&W owners to operate on greater profit margins.

Franchisees own the brand

At A&W, owners have a significant voice in every decision because they own the brand. The National A&W Franchisees Association (NAWFA) Board, comprised of franchisee representatives elected by their fellow owners, works with our Executive Leadership Team on every decision.

"Our shareholders are our franchise partners," says President and CEO Kevin Bazner. "And they have a long-term strategy for the business."

Many franchises pay lip service to the idea of franchisee input and have some version of a franchisee advisory council that offers owners a chance to weigh in on important decisions. But we go further, soliciting franchisee input on everything from wage and labor issues to the size of the to-go bags we use in our restaurants.

We have an operations-based culture that revolves around what's best for franchisees. We always prioritize bottom-line profits when we're thinking about how best to drive top-line sales. And we understand how to deliver value to our guests without sacrificing profitability.

Click here to view our revenue figures and learn more about the A&W franchise opportunity.