How To's
How Much Does a Sonic Franchise Cost?
If owning a restaurant is your dream come true, but you don’t want to start from scratch, why not franchise one? And if you’re looking at different options, consider putting Sonic at the top of your list. Learn more about the drive-in franchise and the Sonic franchise cost before you decide to franchise this.
Sonic Franchise Overview
Sonic started its humble beginnings in 1953 in Oklahoma when it opened its first-ever restaurant. Then, a year later, they introduced the intercom system. It wasn’t until 1994 that they started serving drinks and ice cream. And the drive-in service has grown since then.
Their menu consists of hotdogs, sandwiches, burgers, nuggets, ice cream and shakes.
Sonic has two types of franchises available: the traditional restaurant with indoor and patio seating, drive-thru, and in-car service. The in-car service can have up to 24 cars in total. Meanwhile, a non-traditional Sonic is located in malls, military venues, educational centers, airports, entertainment venues, and other public locations.
Training
Sonic requires its franchisees to have someone working full-time in any of their stores. This means the franchise or operator SHOULD complete the Career Development Program, which has two stages. And it’s encouraged that the manager, franchisee, and another individual complete the training program. Plus, one designated full-time manager should complete the Sonic Management Seminar.
Aside from that, there’s also the ServSafe training program that franchisees must complete before opening the restaurant. In addition to those training programs, all employees should complete the Sonic Safe annual training program.
Those who would be opening three Sonic locations will partner with another franchisee to form their A-team. In that case, the franchisor will also hold another training program for this scenario.
Other than those programs, Sonic will also provide resources from time to time.
Territory
Sonic franchisees can operate in a specific location or one approved by the franchisor. No other franchisees will be allowed to operate within the protected area of a traditional Sonic franchise. Meanwhile, non-traditional ones will still be determined by the franchisor.
Obligation and Terms of Agreement
Sonic does not mandate the franchisee to supervise and manage the store full-time. However, there should be a manager working full-time overseeing operations daily. The manager must complete all necessary training programs, particularly the Stage Career Development Program. Plus, franchisees should only sell approved Sonic products in their stores.
As for franchise terms, here’s what you need to know about the initial terms:
- Traditional Sonic store – 20 years
- Non-traditional Sonic store – 10 years
However, if you want to renew a traditional Sonic store, the franchisor can grant you an additional 10-year term, while a non-traditional one is 5 years.
Sonic Franchise Cost
If you’re interested in franchising a Sonic, one thing you need to remember is the Sonic franchise cost. But how much is it? Know the estimated investment and other costs associated with franchising a Sonic.
Before that, you should also know that Sonic will not offer ANY financing assistance, directly or indirectly, to new franchisees. However, Sonic does have a list of preferred lenders and is listed in the Franchise Registry.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee | $22,500 | $45,000 |
| Payroll | $56,000 | $137,500 |
| Training, Travel and Living Expenses while Training | $5,000 | $33,500 |
| A-Team Trainers | $48,000 | $92,000 |
| Advertising Funds | $2,000 | $5,000 |
| Beginning Inventory | $30,000 | $140,000 |
| Security Deposits, Impact Fees for Utilities, Utility Deposits, Business License and Other Prepaid Expenses | $0 | $250,000 |
| Insurance Premiums | $10,000 | $20,000 |
| Additional Funds (3 months) | $5,000 | $25,000 |
| Miscellaneous Pre-opening Costs | $5,000 | $58,300 |
| Land | Variable | |
| Real Estate Rent or Building and Site Work | $15,000 | $2,300,000 |
| Restaurant Equipment | $120,000 | $260,000 |
| Point-of-Sale System and Digital Menu Housings or Other Technology | $43,000 | $136,400 |
| Sonic Sign | $0 | $35,000 |
| ESTIMATED TOTAL* | $361,900 | $3,537,700 |
Other Cost
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 5% (maximum) of gross sales for traditional and 4% of gross sales for non-traditional. |
| Brand Fee | 0.90% of gross sales. |
| Advertising Cooperative Fee | 3.25% (minimum) of gross sales for traditional and 3% for non-traditional. |
| Additional Training Fee | $500 per person. |
| Transfer Fee | $3,000 |
| Audit Fee and Surcharge | Cost of audit plus 10% of unpaid amounts. |
| Late Charge | 1.75% per month of amount overdue. |
| Technology Fee | 0.25% of Gross Sales. |
| Renewal Fee | $9,000 for traditional and $4,500 for non-traditional. |
| Other | Will vary. |
Did You Know?
- Sonic is part of the Inspire Brands group. Other brands included are Rusty Tacos, Arby’s, Baskin Robbins, Dunkin’, Jimmy Johns, and Buffalo Wild Wings. They joined the group in 2018.
- The drive-in restaurant is ranked # 38 in Franchise 500’s 2022 list.
- They reached a milestone in 2001 by reaching $2 billion in sales.
- Beverages, snacks, and frozen food or drinks are their bestsellers. According to Sonic, 60% of their sales come from those products.
- The drive-in restaurant is looking for franchisees with experience in owning a business or franchising. They should also be sales-oriented, have a connection with their community, and have a strong business acumen.
Do you think you have what it takes to go on a new venture with Sonic as a franchisor? You can start your journey by filling out their form here. And for other franchising info, read more here at Franchise How!