Sonic Drive In Franchise Opportunities, Revenue and Locations
The Sonic Drive-In Restaurant franchise provides the opportunity for prospective franchisees to own part of a world class franchise. This franchise has specialty in the provision of services that include breakfast, ice cream, beverages, burgers, chicken sandwiches and hotdogs. Initially known as Top Hat Drive-In, the Sonic Drive-In restaurant was founded by Troy Smith in 1953.
With its corporate headquarters located at Oklahoma City, Oklahoma, It has Cliff Hudson as its CEO and Sonic Corp. as its parent company. It opened its franchising arm for investment in 1959.
Sonic Drive-In Restaurants Investment Benefits
Being America’s biggest Drive-In chain, the Sonic franchise offers its franchisees the opportunity to partake in a franchise opportunity with national spread and presence with a strong potential for profitability.
Other benefits to be derived by owning a Sonic Drive-In restaurant include ideal locations and territories in all the 50 states of the United States, including having a strong national advertising network.
Some of the qualities required by the franchisor from its franchisees include having experience in retail sales, strong entrepreneurial skills and having a restaurant background among others.
Sonic Drive-In Restaurants Franchise Start-Up Costs
The Sonic Drive in restaurants has start-up cost implications for the ownership of its franchise opportunity. These consist of an Initial Investment sum starting from $1,023,000 to $1,765,000, a liquid cash requirement ranging from $500,000 to $2,000,000, and a net-worth requirement from $1,000,000 to $2,000,000.
Sonic Drive-In Restaurants Franchise Fee
The Sonic Drive-In Restaurant franchise has a franchise fee starting from $45,000. This franchise fee is a requirement for all franchise candidates. There is however a provision for financing which covers the franchise fee. This is in the form of a third party financing provided by the franchisor. the franchisee has to qualify for financing to benefit from this option.
Sonic Drive-In Restaurants Franchise Ongoing Costs
There are ongoing costs incurred by the franchisee in the course of doing business that must be paid by the franchisee to the franchisor. These ongoing costs are in the form of an Ongoing Royalty fee of 5% and an Advert Royalty fee of 3.25 to 5%.
The ongoing cost to be paid to the franchisor largely depends on the size of the franchise. The larger the franchise size, the higher the ongoing cost implications.
Sonic Drive-In Restaurants Franchise Training and Support
The training enjoyed by all Sonic Drive-In franchisees apart from the initial training also includes additional training provided at an existing franchise location. Under Sonic Drive-In restaurants franchise’s initial training arrangement, a career development training session split into parts 1 and 2 are conducted. It is strongly advised that the franchisee participates in both trainings with their managers and at least one other person.
Ongoing training in the form of seminars is held periodically to update the knowledge of its franchisees skills and other important requirements needed for the smooth operation of their franchises.
Apart from training, the franchisor also provides a robust support network that covers areas such as field operations, the provision of internet services, a toll-free line, and occasional meetings/newsletter publications that provide updates on happenings and innovations within the industry.
Others include the provision of security, organizing a grand opening ceremony, and a purchasing cooperative.
Sonic Drive-In Restaurants Franchise Terms of Agreement/Renewal
Under the Sonic Drive-In restaurants franchise’s terms of agreement/renewal, there are two business models which include a traditional sonic and the non traditional sonic business model. Under the traditional sonic franchise arrangement, the initial franchise term lasts a period of 20 years, while for the non traditional; it has an initial franchise term of 5 years.
Under Sonic Drive-In Restaurant’s renewal agreement, the renewal for its traditional franchise model lasts a single 10 year period, while under its non-traditional model; a term of 5 years is made available under its terms of agreement/renewal arrangement.
To qualify for a renewal of its franchise term, Sonic Drive-In Restaurants Franchise requires that interested franchisees meet certain criteria or requirements before they can be considered.
How to Start a Sonic Drive-In Restaurants Franchise?
To start a Sonic Drive-In Restaurants franchise, certain vital steps are required which include visiting the franchisors website on http://sonicfranchises.com/ click on the “be an owner” button which immediately redirects you to the application page where an “information request” page is available. On this page, personal details such as your name, phone, email, state, and a “tell us about yourself” section are provided with spaces for responses. After filling this form, submit immediately and wait for detailed information on this franchise opportunity.
There is an alternative way to get started. On the franchisors website, a phone number is provided for strictly franchise information. After calling this number, all the necessary information is provided by a representative.
This article has paid special focus on the Sonic Drive-In Restaurants franchise, making available all the information needed to help in making the right investment decisions. With details that include the start-up cost, the franchise fee, ongoing costs, and the terms of agreement/renewal arrangement among other procedures, including explanations on how to start, the interested franchise candidate is given the best exposure necessary for making the best investment decisions.