SONIC DRIVE-IN Franchise Cost and Opportunities – Review
The Sonic Drive-In Restaurant franchise provides the opportunity for prospective franchisees to own part of a world-class franchise. This franchise has a 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.
Sonic is a drive-in restaurant brand based in the United States of America. If you are in the restaurant business or wish to be in the restaurant business, sonic is a restaurant brand to consider. The global restaurant business is a globally profitable business.
In this article, we shall be considering Sonic as a company and the franchise opportunity which the company offers business people and entrepreneurs.
We are going to start this article by first looking at the history of Sonic as a company. We are also going to examine the start-up cost for a Sonic franchise and the franchise fee which the company requires from its intending franchisees.
We are also going to discuss the training and support which the company provides for its franchisees. Also to be discussed is the terms of the franchise agreement at the company.
And finally, we are going to tell you how you can open a Sonic franchise.
Is Sonic a Franchise?
Sonic is a franchise. The company is top restaurant brand based in the United States of America. The company operates a chain of restaurants in all 50 states of the United States.
The company was founded 64 years ago on the 18th of June, in the year 1953. Sonic was founded by Troy Smith.
The company first started as a small hamburger stand in Shawnee, a Native American tribe in the state of Oklahoma in the Midwestern part of the United States of America.
The hamburger stand was named Top Hat Drive-In. However, the company’s name was changed in 1959 to Sonic, after Troy Smith found out that the company’s name (Top Hat) was already trademarked.
The company started franchising 59 years ago in the year 1959, 6 years after the company was founded.
The company’s headquarters is located in located in Oklahoma City, Oklahoma, in the United States. Sonic is a private company. As a private company, the company is registered as Sonic Franchising LLC.
Sonic Franchising is a subsidiary company of Sonic Corp. A public company quoted on the NASDAQ exchange with the Ticker Symbol SONC. The company is also an S&P 600 Component company.
The company’s corporate address is located at 300 Johnny Bench Dr. Oklahoma City, OK 73104.
The current President and Chief Executive Officer (CEO) of the company is Cliff Hudson while Paige Bass serves as the company’s Senior Vice President and General Counsel.
The company’s products include chicken sandwiches, hot dogs, and hamburgers. The company also offers such drinks as milkshakes and soft drinks.
The company has seen impressive growth in its years in existence. The company has grown to more than 3,557 locations in 2016, 345 of which are owned by the company while 3,212 are operated by the company’s franchisees.
The company’s first franchise location was opened by an entrepreneur named Charles Woodrow Pappe in Woodward Oklahoma.
Over the years, the company has served delicious meals to its millions of customers in the U.S.
How Much Does Sonic Franchise Cost?
Sonic requires a franchise fee of $45,000 (U.S. dollar) from intending franchisees who want to join the company. Alongside other important fees, the intending franchisees are also required to present a liquid asset of $500,000 (U.S. dollar).
Sonic Franchise Fee
Sonic requires a franchise fee of $45,000 (U.S. dollar) from its intending franchisees. The intending franchisees are also required to pay a royalty fee of 5% of gross sales and an advertising corporative fee of 3.25% of gross sales.
Sonic Franchise Start-up Cost
The required start-up cost for a Sonic franchise is at a low of $865,000 (U.S. dollar) and a high start-up cost of $3,641,300 (U.S. dollar).
Sonic Franchise Training and Supports
Sonic provides training and support for its franchisees. The company’s franchisee training must be attended by a full-time staff of the restaurant location.
The support which Sonic provides for its franchisees include;
- Sonic provides site selection support.
- The company provides online support.
- Franchisees enjoy advertising support from the company.
- There is grand opening support for franchisees.
Sonic Franchise Terms of Agreement/Renewal
The initial franchise agreement at Sonic has a term of 20 years for a traditional Sonic franchise and a term of 5 years for a non-traditional Sonic franchise.
Franchisees at the company can get a renewal of their franchise agreement. The franchisee agreement for a traditional Sonic franchise is for one additional term of 10 years while a non-traditional Sonic franchise can get a franchise agreement renewal of one additional term of 5 years.
The franchise agreement renewals are subject to the franchisee meeting the company’s conditions for a renewal.
How Much Does a Sonic Franchise Make?
How much a Sonic franchise makes is not known. How much a franchise of the company can make is most determined by the location of the franchise.
However, leveraging the company’s long history and success, the franchisees at the company can make money with the franchise.
How to Open a Sonic Franchise
For entrepreneurs who desire to open a Sonic franchise, the intending franchisee is required to contact the company directly on its website at www.sonicfranchises.com for inquiries and to fill out the company’s franchise request form.