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Cullman was established in 1873 by Colonel John G. Cullmann. Cullmann was an advocate for democratic reforms in Bavaria. He had fought during the Revolutions 1848-49 and earned his honorific title of "Colonel". Cullmann was in financial ruin after the failed revolution. Cullmann would attempt to re-establish his business in the years that followed, but he failed to succeed after many setbacks including a huge financial loss during the First Schleswig War. Cullmann became more disillusioned with the German government's political ideas as Prussia began to gain more influence in the German region under King Wilhelm I and his Minister Otto von Bismarck.
Cullmann decided to leave his homeland and emigrate. Cullman fled to London in fear of being forced to participate in the American Civil War. He eventually arrived in America in 1865. Cullman moved to Alabama in 1871 and in 1873 he negotiated an agreement to be the agent for a tract of land measuring 349,000 acres. This tract was owned by Louisville and Nashville Railroad Company. He established a colony to accommodate German immigrants.
In March 1873, five German families arrived in the area. The town was then incorporated in 1874 and named after Colonel Cullmann. Cullmann encouraged approximately 100,000 Germans to migrate to the United States over the next 20 years, many of them settling in Cullman. Cullmann used his military engineering skills to plan and lay out the town. Cullman experienced significant growth during this time. German was still widely spoken and Cullmann was the publisher of a German-language newspaper. Cullmann, 72, died in 1895. Governor William C. Oates attended his funeral. Cullmann's headquarters site is now his burial ground.