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Below is an in-depth analysis and side-by-side comparison of Culver vs Baker Bros. American Deli including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $2,349,000 - $5,356,000 | $430,500 - $656,000 |
Franchise Fee | $55,000 | $25,000 |
Royalty Fee | 4% | 4% |
Advertising Fee | 2.5% | - |
Year Founded | 1984 | 1998 |
Year Franchised | 1988 | 2000 |
Term Of Agreement | 15 years | 10 years |
Term Of Agreement | 15 years | 10 years |
Renewal Fee | $30K | $5K |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/Yes | No/Yes |
Receivables | No/Yes | No/Yes |
Payroll | No/Yes | No/Yes |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Meetings, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Ad slicks, National media, Regional advertising | Ad slicks, Regional advertising |
Operations |
30% of all franchisees own more than one unit Number of employees needed to run franchised unit: 40 - 50
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
International franchisees required to buy multiple units/master licenses Number of employees needed to run franchised unit: 15 - 18
Absentee ownership of franchise is allowed. |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | No | No |
After working with his parents in their restaurants, Craig Culver decided it was time to open one for himself. In 1984 Culver, with the help of his wife Lea and parents George and Ruth, transformed the A&W his parents owned since the sixties into Culver's Frozen Custard. Its founder's family inspired the menu for the initial Sauk City, Wisconsin, restaurant. When Culver's mother made hamburgers, she would put a dab of butter on the crown of the hamburger buns before toasting them; something her children felt made them taste better. Today, employees at each Culver's location use the same technique when making their ButterBurgers. There are Culver's locations in twelve states. All Culver's franchisees are owner/operators.
We’re looking for leaders with the initiative and skills to take a team of people and operate a Culver’s according to our high standards. You need energy and enthusiasm. You have to be willing to work hard. You have to love people and believe, as we do, that having a great heart is also good business.
Culver’s has grown to over 500 restaurants in 22 states.
The Baker Bros believe that they have one of the most franchisee-friendly programs in their industry. Baker Bros is franchised through an Area Development Agreement that generally requires a 2 to 5 store minimum for individual franchisees. The Area Development Agreement covers an exact geographical area, franchise terms and conditions, number of units to be opened under the agreement and other details of the franchise program. Baker Bros offers an extensive Franchise Support Program. Tom and Ken are always available to assist you and to answer any questions that you might have. In addition, one of our Franchise Advisors will come to your store periodically to provide personal assistance from Baker Bros. Whatever you might need, there will always be a person at Baker Bros who can help you.