Sonic Franchise Cost | Is Sonic a Franchise | Fee

What requirements must one meet to open a Sonic franchise? One of America’s most prominent drive-in fast food restaurants, Sonic Drive-In has more than 3,400 locations and serves millions of consumers. If you are anytime planning to own a Sonic drive-in, then your restaurant will sell everything from foot-long chili cheese dogs to juicy burgers to renowned milkshakes.

It might be one of the best franchised fast food restaurants because of the broad menu. Even customers who haven’t tried Sonic Drive-In are familiar with the drive-in idea. Your location might be these customers’ first Sonic Drive-In experience for those who have been waiting to taste the quality you would probably own. 

How much does a Sonic Drive-in franchise cost

The total estimated Sonic franchise cost ranges from $1,242,200 – $3,537,700 (excluding land) and the fee is $45,000, the net worth and requirements may be satisfied with a partner’s net worth. It’s the same cost as the Sonic franchises in the US. 

Sonic Drive-in Franchise Cost and Price
Sonic Franchise Fee	$45,000
Sonic Franchise Cost	$1,242,200- $3,537,700
Royalty Fee	5%
Advertising Fee	3.25%
Term of Agreement	20 years
Is the franchise term renewable?	Yes,
Renewal Fee	20% of the license price.

How much do Sonic franchise owners make?

According to the latest FDD, the Sonic drive-in franchise owners make $1.37 million in revenue every year and with a profit margin of 18 to 22%, you can make a profit of $320,000.The Sonic franchise owner’s salary is around $95,000 as per the company records.

Is the Sonic Drive-in Franchise Profit Worth the Cost?

Sonic Franchise is not at all worth the profit only if you tend to earn more from their franchises. If you take ownership of multiple franchises, then you earn more amount of money in comparison to the amount of investment you make. 

With a Sonic franchise profit of $300 to $350K, it will take 12 to 15 years to recoup the investment mid-point of $2.5 million. I will not recommend this franchise opportunity at this cost. Unless the initial cost is reduced with no impact on sales, you should stay away from Sonic Drive-in.

Sonic Franchise Requirements

For a typical Sonic, the total investment ranges from $1.02 to $1.77 million, with the fee being $45,000. (excluding land). The complete net worth/liquidity requirements may be satisfied with a partner’s net worth. 

A typical Sonic has a 20-year tenure with an additional 10-year renewal. The franchise also needs to have experience in restaurant background with multi-unit experience preferable by the franchisor. 

One needs to have the ability to manage the team well and possess leadership with strong business/ entrepreneurial skills. The best key to running a franchise is to have an active community and workspace. This is what is expected of a Sonic franchisee. 

Sonic Franchise Rankings

Sonic Drive-in Franchise Owner Reviews

 To get the most out of your Sonic experience, here are some tips from the owner.

1. Arrive Early

One of the best ways to enjoy your Sonic experience is to arrive early. This allows you to get a good spot in the parking lot and avoid the long lines that tend to form later in the day.

2. Order Wisely

When you arrive at your Sonic, take a few minutes to peruse the menu. This way, you can order the food that you enjoy and avoid anything.

Other than food reviews and ordering methods, you should meet the Sonic Drive-in franchise owners and find answers to questions like 

1. How much is a Sonic franchise?
2. How much does a Sonic franchise cost?
3. How much does it cost to own a Sonic franchisee?
4. How much to open a Sonic franchisee?
5. How much to start a Sonic Franchisee?
6. Who owns Sonic Franchisees?

Meet the franchises before you buy a Sonic.

 

Sonic Drive-in Restaurant Training to Franchises

The current training program for the franchisee comprises  440 hours of technical training at a Sonic restaurant that the franchisor chooses. Within six months of taking the management role, at least one full-time manager must complete the general manager leadership class training to the franchisor’s satisfaction. 

Along with station classes and the assistant manager learning development program, the franchisor also offers management professionals additional self-directed continuous training courses, online training, and webinars.

Sonic Restaurant Operations 

The restaurant must always have at least one person working there full-time who has finished the training program that was in effect at the time. Franchisees are required to serve every item on the menu that the franchisor periodically requests, refrain from serving anything that is not included in the operations manual or that the franchisor has not otherwise authorized and approved, and only display and offer the menu that the franchisor has approved at that time.

How is Sonic Franchise Territory Granted

With some exclusions, the franchisor will not own or operate a Sonic restaurant within the restaurant’s protected region, and will not provide any other person a license to do so. (other than a Sonic restaurant licensed before the date of the licensing or agreement). 

 

What is Sonic Franchise Term of Agreement and Renewal?

The first franchise term for non-traditional locations is 20 years, or a lesser of 10 years, the term of the facility lease, or both. If the conditions are met, a traditional Sonic is renewed for one more 10-year period.

Does Sonic provide Financial Funding to franchises?

No, unfortunately, Sonic franchises do not provide any financial assistance to their franchisees. 

Pros & Cons of Owning Sonic Drive in Franchise

Pros

1. One of the most distinctive concepts in the QSR sector, the Sonic Drive-in experience delivers customization, control, and choice.
2. One of the most well-known and effective QSR ad campaigns in history, Sonic’s Two Guys gave franchisees instant brand recognition and unmatched advertising power on opening day and beyond.
3. A franchisee that opens in a new location now has a national advertising campaign working for them thanks to Sonic’s continuously growing market share.

Cons

1. Unfortunately, they do not offer any kind of financing to their franchisees. 
2. You may need to employ many employees to operate your store as it needs a lot of manpower. 

Franchise Deck Analysis and Overview

There are very high chances that many people will visit your store out of curiosity about you or because they already know who you are and need to satiate their appetites. This is the effectiveness of national advertising campaigns that run on television, radio, and the Internet. 

The Sonic Drive-in has definite plans to expand more than just the US. The inside and exterior designs of Sonic Drive-In also have that ageless, retro-futuristic diner aesthetic. Hence these are all really good reasons for you to think of buying a Sonic franchise if you are keenly into the fast-food industry. 

According to other industry data, franchise owners’ average gross sales were $1,246,000 in 2019. In addition to that, 23% of Sonic Drive-Ins had gross sales of more than $1.5 million in that same year. 

Sonic Franchise Success and Failure Rate

Sonic franchising has shown an increase in growth by introducing on average 16 units per year. On the other hand, they have also shut down around 36 units a year.

Competition Analysis of Sonic
Franchise Brand	Cost to Franchise	Franchisee Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Sonic	$1,242,200- $3,537,700	$45,000	5%+3.25%	13%	14.5 years	3.5/5.0
Burger King Franchise	$316,100-$2,660,600	$50,000	4.5% 4%	16%		3.8/5.0
SUBWAY Franchise	$229,050 – $522,300	$15,000	8% 4.5%	7.5%		4.0/5.0
KFC Franchise	$1,440,600 – $3,163,550	$45,000	4-5% 5%	15%	13.5 years	3.7/5.0
CHECKERS AND RALLY’S	$790,797 – $2,368,316	$30,000	4% 4.5%	15%		3.5/5.0

I rate Sonic franchising as 3.5/5.0.

Conclusion: Should You Buy the Sonic Franchise for Sale?

The Sonic franchise is categorized as one of the very well-maintained fast-food industries. I would let you explore the franchise on your own, either by reaching out to the existing franchise owners or by finding out more detailed information about the franchise. If you are planning to consider this franchise, no doubt it would be a better option as it is one of the leading industry domains, but you may think wisely before you make a final decision. 

Entrepreneurs who want to open a franchise in the burger franchise opportunities category can look at 

1. Whataburger Franchise 
2. Mcdonald’s Franchise
3. Burger King Franchise
4. Burger Village Franchise 
5. Hardee’s franchise
6. Five guys franchise
7. Wayback burger franchise 
8. Wendy’s Franchise7
9. 7 brew franchise

Frequently Asked Questions (FAQs)

1. Is the Sonic’s franchise profitable?

Yes, the Sonic franchises are profitable but you will take 15 years to recoup your investment.

2. How do Sonic franchises make money?

The Sonic drive-in franchises make money by opening a chain of restaurants and selling fast food like burgers to their customers.