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Sonic Drive-In
 

SONIC DRIVE-INS offer made-to-order hamburgers and other sandwiches, and feature signature items, such as extra-long cheese coneys, hand-breaded onion rings, tater tots, fountain favorites, including cherry limeades, slushes and a full ice-cream dessert menu.

Franchisor Background

Year Established:

  1953

Franchising Since:

  1959

Operating Units:

Franchised Units:2,850 82%  
Company-Owned Units:625 18%  
 ______ _____  
Total Operating Units:3,475 100%  
 

Geographic Distribution:

U.S.:3,468 99.8% In 37 States
Canada:0 0% In 0 Canadian Provinces
International:7 0.2% In 0 Foreign Countries
 ______ _____  
Total:3,475 100%  
 

North America:

States/Provinces with the largest number of operating units:
DensityUnits    
1. Oklahoma234
2. Tennessee191
3. Texas739

Registered in Following Registration States:

   California, Florida, Illinois, Oregon, Virginia, Washington, District Of Columbia

Financial Requirements

Investment:

Minimum Net Worth:$2MM
Cash Investment:$434-545K
Total Investment:$900K-2.2MM
Average Total Investment:$1550K
 

Fees:

Initial Franchise Fee:$30K
Average Franchise Fee:$30K
On-Going Royalty:1-5%
Average Royalty:3%
Advertising Fee:4%

Average Number of Employees:

   35 Full-time, 0 Part-time

Space Needs (in square footage):

   1,450

Preferred Sites:

   Free-standing Building

Other Sites:

  

Encourage Conversions?

   No

Earnings Claims Provided?

   No

Listed in the SBA Registry?

   No

Support and Training

International Franchise Association:Yes
Canadian Franchise Association:No
Franchisee Association/Member:Yes, Member
Size of Corporate Staff:210
Site Selection Assistance?Yes
Lease Negotiation Assistance?Yes
Financial Assistance?Yes, Indirect
 

Marketing Support:

Co-Op Advertising:Yes
National Advertising:No
Regional Advertising:No
Local Advertising:No
Marketing Materials:None Specified
Additional Services:None Specified
Other Marketing Support:None Specified
 

On-Going Support:

Central Data Processing:Not Applicable
Central Purchasing:Included in Fees
Field Operation Evaluation:Included in Fees
Field Training:Included in Fees
Initial Store Opening:Included in Fees
Inventory Control:Included in Fees
Franchisee Newsletter:Included in Fees
Regional or National Meetings:Included in Fees
800 Telephone Hotline:Included in Fees
 

Training:

1. Oklahoma City, OK1 Week
2. Local Market11 Weeks
 

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):
 
Financial Net Worth:5
General Business Experience:5
Specific Industry Experience:5
Formal Education:2
Psychological Profile:2
Personal Interview(s):4

Minority Representation

Units Owned by Minorities:

African-American:N/A
Asian-American:N/A
Hispanic:N/A
Native American:N/A
Other:N/A
Specific Minority:N/A

Terms of Contract

Term of Initial Contract:20 Year(s)
Term of Renewal Period:10 Year(s)
Passive Ownership:Not Allowed
Area Development Agreements?Yes, for 0 Year(s)
Sub-Franchising Contracts?No
Franchisees Allowed to Expand Within Territory?Yes

Expansion Plans

Projected New Units Over Next 12 months:

   185
U.S.:Yes, SW, SE, West, Midwest
Canada:No
Overseas:Yes, Mexico, Puerto Rico
 
 
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