Sonic Drive In Restaurants

Drive-in hamburger restaurant
Year began: 1954    Franchising since: 1959
Sonic Industries Inc. was founded in 1973. In 1974, Sonic acquired the name “Sonic Drive-In” from Troy Smith, Sr., and began franchising. Smith used his more than 15 years of experience in the restaurant business to develop and operate the Sonic franchise program.

A wholly owned subsidiary of Sonic Corp., the company is based in Oklahoma City, Oklahoma, and has locations throughout the United States. The company’s storefronts recently got a facelift to give them a “retro-futuristic” look.

300 Johnny Bench Dr.
Oklahoma City, OK 73104

Phone: (800)569-6656/(405)225-5000
Fax: (405)225-5963

Franchisor has 200 employee(s)


Franchise Growth
Year

2008
2007
2006
2005
2004
U.S. Franchises
2,655
2,655
2,493
2,419
2,334
Canadian Franchises
0
0
0
0
0

Foreign Franchises
0
1
2
7
5
Company
Owned
642
642
643
623
510

Where Seeking Franchisees
In the U.S.

Outside the U.S.:

Exclusive territories available.
Territory size: Varies by market

Special Programs
Sonic puts new franchisees in contact with established franchisees who can offer them information and support.

Costs & Fees
Total investment: $820K-2.3M
Express/kiosk option available
Franchise fee: $45K
Ongoing royalty fee: 2-5%
Term of agreement: 20 years, renewable
Renewal fee: 10 years for $6K
Type of Financing Available
In-HouseThird Party
Franchise FeeNoYes
Startup CostsNoYes
EquipmentNoYes
InventoryNoYes
Accounts ReceivableNoYes
PayrollNoYes
Qualifications
Net worth requirement: $1M
Cash liquidity requirement: $500K
Business Experience:
  • Industry experience
  • General business experience
  • If no industry experience, must have an operating equity partner

Operations
  • 60% of all franchisees own more than one unit
  • Number of employees needed to run franchised unit: 25
  • Absentee ownership of franchise is NOT allowed.

Training & Support
TRAINING
  • Available at headquarters: 1 week
  • At franchisee's location: 11 weeks
  • Additional training available: 1 day to 1 week

ONGOING SUPPORT
  • Newsletter
  • Meetings
  • Grand opening
  • Internet
  • Security/safety procedures
  • Field operations/evaluations
  • Purchasing cooperatives

MARKETING SUPPORT
  • Co-op advertising
  • Ad slicks
  • National media
  • Regional advertising

Rankings in Entrepreneur magazine 2004-2008
Franchise 500® rank:
#6 (2008); #8 (2007); #13 (2006); #6 (2005); #13 (2004);

Ranked #1 in category in:
2007; 2006; 2005;

Fastest-Growing Franchises:
#26 (2008); #52 (2007); #46 (2006); #28 (2005); #22 (2004);

America's Top Global Franchises:
#8 (2008); #8 (2007); #17 (2006); #17 (2005); #13 (2004);

Last Updated: 5/22/2008 12:00:00 AM



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