Can You Open a White Castle Franchise in 2025?

White Castle is an American fast-food chain known for its iconic small, square hamburgers called “Sliders.” Founded in 1921 by Walter A. Anderson and Billy Ingram in Wichita, Kansas, White Castle is recognized as the world’s first fast-food hamburger chain.

To create a sense of cleanliness and quality, the restaurants were designed as small white buildings, and the staff wore spotless uniforms. The company headquarters moved to Columbus, Ohio, in 1936, where it remains today.

White Castle is a privately held, family-owned company, and unlike many of its fast-food competitors, it has historically chosen not to franchise its stores, which is why all its restaurants are company-owned.

While its restaurant reach is limited, White Castle has expanded its product availability by selling frozen sliders in supermarkets nationwide.

Initial Investment

How much does it cost to start a White Castle franchise? White Castle does not offer franchise opportunities currently, as all of its locations are company-owned.

Therefore, it is not possible to start a White Castle franchise franchise, and there is no associated cost for franchising with the company.

For similar burger franchises, however, the initial investment is on average $1,456,000.

Here are a few comparable burger franchises with their initial investment requirements. For example, starting a McDonald’s franchised restaurant, in comparison, would cost you anywhere from $521,000 to $2,503,000.

Average Revenue (AUV)

How much revenue can you make with a White Castle franchise? Since White Castle currently does not franchise its stores and all locations are company-owned, it does not publish a Franchise Disclosure Document. Therefore, White Castle does not disclose the average revenue of its stores.

However, a similar burger franchise makes on average $1,548,000 in revenue (AUV) per year. For example, a Burger King franchised restaurant makes on average $1,526,000 in revenue per year.

Below are 10 competitors and their average yearly revenue as a comparison:

Frequently Asked Questions

How many White Castle locations are there?

As of the latest data, White Castle operates approximately 350 company-owned locations across the United States, primarily in the Midwest, with additional locations in areas like Las Vegas, Arizona, and Florida.

What is the total investment required to open a White Castle franchise?

White Castle does not offer franchise opportunities and therefore, it is not possible to establish the initial investment to start a White Castle franchise.

However, the total investment required to open a franchised store similar to the White Castle franchise ranges from $156,000 to $6,867,000.

What are the ongoing fees for a White Castle franchise?

Since White Castle does not offer franchises and all stores are company-owned, the ongoing fees such as royalty fees or advertising fees associated with franchising the brand are not readily available.

Yet, similar franchises in the burger industry charge an average of 5% in royalty fees and 4% in advertising fees ( e.g. Burger King).

What are the financial requirements to become a White Castle franchisee?

White Castle does not currently offer franchise opportunities. All locations are company-owned, and they have chosen to keep the business privately held and family-owned without franchising to external parties. Therefore, there are no financial requirements for becoming a White Castle franchisee since franchising is not an option.

For burger franchises similar to White Castle, the minimum net worth ranges from $250,000 to $1,000,000 or more. Liquid capital requirements can vary widely but often range between $50,000 to $500,000.

However, these figures can vary greatly depending on the industry, the size of the franchise, and the brand’s specific requirements.

How much can a White Castle franchise owner expect to earn?

Since White Castle is entirely company-owned and does not operate as a franchise, there is no earning disclosure for a White Castle franchise.

Now, assuming the average gross sales for a burger franchise similar to a White Castle franchise of $1,548,000 per store. And assuming a 15% operating profit margin, $1,548,000 yearly revenue would result in about $232,000 operating profit per year.

Who owns White Castle?

White Castle is a family-owned company, and it is privately held by the Ingram family. It was co-founded by Billy Ingram, and today, the company remains under the leadership and ownership of his descendants.

Disclaimer

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