Sonic Drive-In
Food & Beverage QSRCompany Information
Address
440 S. Church St., #700 Charlotte, NC 28202
Website
Tel
Email
Need a financial model to forecast earnings potential?
DOWNLOAD
Franchise Summary
Description
Sonic Franchising LLC licenses the operation of Sonic restaurants, serving made-to-order premium beef hot dogs, footlong quarter pound coneys, hamburgers and other sandwiches, hand-battered onion rings, tater tots and a full breakfast menu. They are known for our variety of Frozen Favorites® treats and Fountain Favorites® drinks, too, like cherry limeades, famous slushes and SONIC Blast® treats. At a typical “Traditional Sonic Drive-In,” a customer parks in one of 16 to 24 covered drive-in spaces and orders through an intercom speaker system. A Carhop then delivers the customer’s food directly to the customer’s vehicle. The Traditional Sonic Drive-In also includes a drive-thru lane and a patio, and may include an enclosed patio or indoor seating.
Company Background
Sonic is the world's largest chain of drive-in restaurants. It was founded in 1953 by Troy Smith, Sr. and opened its first location on May 25th, 1953 in Shawnee, Oklahoma. Sonic has since grown to over 3,500 locations worldwide with more than 36 years of experience serving millions of people each year through carhops or walk up service at their signature drive-in window.
Franchise Opportunity
Sonic is a great place to get food, but there are so many options it can be hard to choose. With all of the different menu items at Sonic, it can be hard to know what to order. You might end up getting something you don't really want or not getting enough of the things you do want. Sonic's new Pick 3 Menu offers a great solution. You can pick any three items from a list of favorites that include burgers, chicken sandwiches, hot dogs, and more. This way you can mix and match what you want and always have something delicious to eat.
Corporate Structure
Sonic Franchising LLC is a Delaware limited liability company and was formed on March 23, 2011. Sonic is an indirect wholly owned subsidiary of Sonic Corp., a Delaware corporation. Sonic Corp.’s, Sonic’s and all Sonic’s affiliates’ offices are located at 300 Johnny Bench Drive, Oklahoma City, Oklahoma 73104.
Investment and Franchisee Fees
Your estimated initial investment necessary to begin operation of a Traditional Sonic Drive-In franchise ranges from approximately $865,000 to $3,641,300 plus land costs and includes the $45,000 franchise fee that must be paid to Sonic. Your estimated initial investment necessary to begin operation of a Non-Traditional Sonic franchise ranges from approximately $354,500 to $1,520,300 and includes the $22,500 franchise fee that must be paid to Sonic.
Royalties and Marketing Fees
Royalties : 2.5% - 5.0% of revenue
Royalties : 0.90% of Gross Sales
Royalties : 3.25% (Minimum) of Gross Sales
Earnings Transparency
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry
Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet
Financial Performance of "Standard" Units
Average Revenue Per Unit
Compared vs. QSR Industry$1,633,000 / unit
Franchise Type: Standard
Average Revenue During 2020
Management Team
| # | Name | Position |
|---|
Distribution of Sonic Drive-In Franchisees
Sonic Drive-In Franchise System Development in 2022
FAQ
How much investment do I need to start my own Sonic Drive-In business?
Franchisees typically require at least $717,000 to $3,543,000 investment to get their Sonic Drive-In business started
What are the initial franchise fees for Sonic Drive-In?
Franchisees typically need to pay at least $45,000 in fees directly to Sonic Drive-In in order to earn the right to launch their business
How much money can I make with a Sonic Drive-In franchise? What are
the average revenues for a typical Sonic Drive-In business?
We estimate that the average revenue of an individual
Sonic Drive-In unit is approximately
$1,633,000. We based this on Item 19 in franchise disclosure
document
How long do I need to commit to running a Sonic Drive-In unit? What
is my contractual commitment?
Sonic Drive-In franchisees are typically required to sign up to a
10 year contract initially. The renewal length
is 5 years. You can of course exit early but
don’t expect to get any refund!
Accessibility
The Franchisor's investment costs ranges from
$213,540 to $475,750
which is
Much Lower
than the $0 to $0 average in the QSR industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc
Franchises in the Same Industry
Popular Franchises
Is this your Franchise?
Update your profile with photos, videos, useful information, and start connecting with prospective franchisees today
CLAIM THIS FRANCHISE