Sonic Drive In offers a unique franchise opportunity to highly motivated and ambitious individuals, seeking long-term investment opportunities and a lifetime of wealth, with successful restaurant experience.
The most interesting thing about this franchise comes from its one-of-a-kind services. Sonic Drive In prides itself on being the largest drive in franchise in the United States. It provides window-side service and can handle multiple customers at once. Its menu is unlike any other fast-food chain on the market. Specifically, it serves items like, “TOASTER Sandwiches made with Texas Toast, Ex-Long Cheese Coneys, Onion Rings, Tater Tots, Cherry Limeades, Premi-YUM Cream Pie Shakes, Java Chillers premium roast coffee, and more.” These individual characteristics give Sonic an edge unlike any other franchise currently in operation.
Perhaps other, larger franchises like McDonald’s and Subway seem too large with too much expansion room. Sonic operates mostly in the United States, with a few international stores in Mexico. At the end of this fiscal year, over 3,000 stores were in operation.
This smaller scale franchise provides a unique opportunity for franchise owners to be a part of a franchise that gives more of a “hometown” feeling with lots of room to grow.
Sonic Drive In first opened as a root beer stand in Oklahoma in 1954 and began franchising in 1959. Troy Smith is its founder and later brought on team member, Charlie Pape. Like the large franchises, this franchise has maintained a successful business for over 50 years now—quite a feat in today’s economy. Since 1987, Sonic’s average unit sales have increased each year. New markets have opened with an increase in system-wide sales as well.
As far as purchasing a Sonic Drive In franchise goes, they’re pretty comparative to other franchises. Sonic expects a 20-year agreement from the franchisee with a 10-year renewal term. The total initial investments range from $710,000 to $3 million. Further, franchise fees run $45,000 with royalty fees of 4 to 5%. The initial investment is fairly low, considering the high price is for multiple franchises. Like other restaurants, Sonic expects franchisees to eventually span out operations and increase store ownership.
Sonic Franchise disadvantage
One thing to Sonic’s disadvantage involves the small size of the company. Yes, it provides more personal service; however, it does not have some of the advantages of a large franchise. For example, McDonald’s has more funds available to create better marketing campaigns. Companies of this caliber can offer better, more extensive training to franchisees because they have the financial means to do so. Another disadvantage is initial investment costs for Sonic. Yes, compared to some, they are lower; however, because of the unique services offered more over-head is necessary. This brings up the price of the investment.
How Do I Open A Sonic Franchise? Or Should I Even Try?
Overall, Sonic has proven itself to be a reputable, successful franchise. Again, it’s unique services and products offer a great advantage compared to larger scale restaurant chains. For the individual looking to own a profitable and stable, but smaller franchise, Sonic is a great option. It brings all of the support a franchise offers with the experience and wisdom gained over fifty years, but also offers a small, “hometown” feeling as well.
If you’re in the market to purchase a franchise, look into Sonic. It may be your perfect match.